Many states are struggling with rising property insurance premiums, shrinking availability of coverage, and growing losses from natural disasters. Colorado is demonstrating how thoughtful leadership and practical policymaking can respond to these insurance challenges, as noted in Division of Insurance: Colorado Takes Further Action to Lower Homeowners Insurance Rates. Colorado announced further action aimed at lowering …
Merlin Law Group, P.A. Blogs
Latest from Merlin Law Group, P.A.
The Condo Insurance File Has Gone from Loss Runs to Data Runs
By Chip Merlin
I attended the Community Associations Institute (CAI) Annual Conference this week wearing two hats. One was as a lawyer who has spent a career representing policyholders. The other was as the president of my condominium association. That second hat made the risk management meeting and discussion hit a little closer to home. The discussion was ……
The Real Insurance Crisis Is Not Fraud but Systematic Undervaluation of Claims
By Chip Merlin
For decades, the insurance industry has justified legislative reforms, regulatory changes, and restrictions on policyholder rights by pointing to the specter of insurance fraud. We have repeatedly been told that fraudulent claims are a major driver of rising premiums and instability in insurance markets. Legislators and regulators have heard it. The public, newspapers, and television ……
Claims of Fraud Exaggerated by Insurance Industry’s Own Statistics
By Chip Merlin
The Wall Street Journal recently published an article with a striking headline: “The Home-Insurance Coin Flip: Nearly Half of Claims Result in Zero Payout.” 1 The article highlighted a troubling reality that more claims are increasingly being closed without payment. According to the Journal’s analysis, the five largest homeowners insurers collectively paid nothing on more ……
Why Did the Insurer Deny Coverage After the Railroad Mitigated Loss? Understanding Deductibles and Business Interruption
By Chip Merlin
One of the fundamental principles of insurance is that policyholders should take reasonable steps to prevent loss. So, what happens when the policyholder does exactly what it is supposed to do, successfully prevents damage, and the insurer then argues that there is little or no coverage because the damage never occurred? This unusual situation is ……
The Portofino Appraisal Fight Heads to Appeal—Why Every Property Insurance Professional Should Be Watching
By Chip Merlin
Last September, I wrote about the federal court decision vacating a massive appraisal award arising from Hurricane Sally damage at the Portofino condominium complex on Pensacola Beach in When a $187 Million Appraisal Award Collapsed in the Courtroom. At the time, I noted that the ruling had the potential to become one of the most significant ……
Artificial Intelligence Is Inspecting Your Roof and Deciding Your Insurance Future: Insurance Regulators Are Paying Attention
By Chip Merlin
A homeowner receives a notice of nonrenewal. The reason is not an inspection by a person. Nobody knocked on the door. Nobody climbed a ladder. Nobody spoke with the homeowner. Instead, an algorithm reviewing aerial imagery flagged the property as having a deteriorated roof, excessive vegetation, or another condition deemed too risky for continued coverage. ……
A Sewer Backup Endorsement That Vanished When It Was Needed Most
By Chip Merlin
Insurance companies offer and sell endorsements that can be purchased to fill coverage gaps. Policyholders pay additional premiums because they believe they are obtaining protection against specific risks when they purchase these endorsements. Yet a recent case, Express Jewelry Enterprises, Inc. v. National Fire Insurance Company of Hartford, 1 demonstrates how that promise of additional ……
The Insurance Industry’s Quiet War Against Public Adjusters Update
By Chip Merlin
I recently wrote about a controversial lawsuit involving anti-public adjuster endorsements being used by surplus lines insurers in The Insurance Industry’s New Playbook: Hire a Public Adjuster, and You May Lose Coverage. The case is pending in federal court in Massachusetts. 1 The insurer, Velocity Risk Underwriters, filed a motion to dismiss the lawsuit, and the ……
Where Did the Term “Lowballing” Come From?
By Chip Merlin
Insurance lawyers hear the term “lowballing” all the time. Public adjusters say carriers are lowballing claims. Policyholders complain that insurers are lowballing estimates. Defense lawyers cringe when the word appears in a brief because it sounds accusatory before the first witness is ever sworn. But where did the term “lowballing” actually come from? This question ……