By Mordechai L. Breier
As someone who has spent over a decade representing homeowners and policyholders navigating the complexities of property insurance litigation, I’ve witnessed firsthand how Florida’s insurance market, often at the forefront of climate-related challenges, mirrors troubling national trends. California’s recent struggles with wildfires offer invaluable lessons for Florida as we grapple with our own natural disasters and the resulting insurance crises.
Both California and Florida are particularly vulnerable to frequent and severe natural events with wildfires in California and hurricanes in Florida. Despite the distinct nature of these catastrophes, the property insurance markets in both states face strikingly similar challenges. Insurers are increasingly retreating from high-risk areas, attributing their actions to climate change, even though they have long possessed the tools and expertise to forecast and manage these risks. Instead of innovating, many insurance companies have shifted their focus toward maximizing profits by cutting coverage, raising premiums, and ultimately leaving millions of policyholders exposed.
California’s battle with wildfires has been a persistent issue for decades, but insurers now cite the increased intensity and frequency of these fires as justification for scaling back coverage or abandoning the market altogether. This exodus leaves homeowners scrambling for increasingly limited and expensive coverage options. Similarly, Florida is facing a comparable crisis as insurers pull out of the market following the state’s recent spate of severe hurricanes, including Hurricanes Milton, Helene and Debby. However, this trend isn’t the result of an inability to manage risk, but quite the opposite. Modern forecasting tools have never been more advanced. The issue lies in corporate strategies designed to avoid paying claims, prioritizing shareholder profits over policyholder protection.
In Florida, recent legislative reforms have only deepened this crisis. These changes have allowed insurers to impose stricter filing deadlines, cap payouts for common damages, and further reduce coverage while simultaneously raising premiums. Homeowners, already reeling from the aftermath of devastating storms, now face diminished protection and greater financial insecurity. This scenario mirrors California, where many residents now rely on state-backed insurance programs like the California FAIR Plan, which provide only limited coverage and leave policyholders vulnerable to significant losses.
The parallels between these two states highlight a shared need for greater accountability in the insurance industry. Both Florida and California are experiencing a shift toward carriers of last resort, which, while offering some level of coverage, are not a sustainable solution. These programs often lack the resources to fully protect homeowners, leaving them exposed in times of need. Meanwhile, insurers continue to claim that rising risks make it impossible for them to operate in high-risk states, even as many of these companies report record profits.
The solution to this crisis lies not in blaming climate change or natural disasters alone but in fundamentally restructuring the insurance market to prioritize long-term stability, consumer protection and corporate accountability. Both Florida and California must demand that insurers honor their commitments to policyholders rather than exploiting natural disasters as an opportunity to retreat from their obligations.
For Florida, the lesson from California is clear: take action before the problem worsens. Policymakers, regulators and industry leaders must work together to ensure the insurance market serves its purpose—not just in name but in practice. This is not simply a crisis of nature; it is a crisis of accountability. The time to act is now.
Mordechai “Mutty” L. Breier, managing partner of Insurance Litigation Group (ILG), is a seasoned litigator and trial attorney. As managing partner, Breier heads the firm’s day-to-day property insurance and auto windshield & recalibration litigation practice (ADAS). ILG concentrates its practice on first-party insurance litigation on behalf of residential homeowners, commercial business owners, and contractors throughout Florida and handles large property damage claims nationwide. Breier established ILG with a clear focus and mission: To aggressively pursue our clients’ claims from inception through trial, obtaining the maximum compensation available under our clients’ policy.
Reprinted with permission from the January 29, 2025 edition of the Daily Business Review © 2024 ALM Global Properties, LLC. All rights reserved. Further duplication without permission is prohibited, contact 877-256-2472 or asset-and-logo-licensing@alm.com.
