I wanted to highlight the shockingly high claim denial rate of Citizens Insurance, a major homeowners’ insurer in Florida. They have been over the 50.4% denial rate, especially considering Citizens is a government-backed entity intended to be a last resort for homeowners seeking insurance.

Why are so many claims being denied?

There are two primary reasons for this high denial rate:

• Misunderstanding of policies: Many homeowners mistakenly file flood claims with their standard homeowners’ insurance, unaware that flood damage is generally not covered.
• High deductibles: Florida’s common use of percentage-based deductibles means homeowners must pay a significant amount out-of-pocket before their insurance kicks in. If they can’t afford this, their claims are denied.

What is a solution? People need better insurance education.

There is a significant lack of understanding among homeowners regarding how insurance policies function. This knowledge gap leads to many claims being filed that are unlikely to be approved. To add to this, government involvement doesn’t automatically guarantee better outcomes when dealing with insurance.