The Florida Attorney General announced on Tuesday an investigation into possible practices by insurance companies that could leave homeowners without compensation for hiring an independent professional to claim damages to their homes, even after a hurricane.
The state attorney general, James Uthmeier, reported that his office is examining clauses included in certain policies that prevent policyholders from turning to public adjusters, authorized specialists to represent homeowners during the claims process.
The investigation already includes a formal subpoena to obtain documents from Velocity Risk Underwriters, LLC, a company focused on underwriting and managing insurance that operates in Florida.
According to the official statement published on October 20, authorities are seeking to determine whether several companies collaborated to impose these restrictions with the aim of reducing the amounts paid to their customers.
The measure could be especially important for thousands of families in the state, including those residing in Miami-Dade and Broward, who rely on their policies to repair homes affected by hurricanes, floods, fires, and other covered disasters.
Insurers could reject the entire claim
The focus of the research is on the so-called anti-public adjuster clauses, contractual provisions that restrict or prohibit the hiring of public adjusters.
However, according to the Prosecutor's Office, some policies state that the insurer can deny the entire claim when the owner hires one of these specialists.
The situation particularly affects certain policies in the specialized insurance market, known as surplus lines, used to cover properties that may be difficult to insure through traditional companies.
Among them are homes located near the coast or with old roofs, which often face greater risks and challenges in obtaining coverage.
The Prosecutor's Office claims that Velocity manages thousands of policies of this type in Florida, related to millions of dollars in premiums.
Property owners could receive up to 30% more with professional assistance, according to the Public Prosecutor's Office
Another key point of the announcement is the difference that could exist between the compensation received directly from an insurer and that negotiated through a public adjuster.
According to Uthmeier, property owners who use these services can receive up to 30% more money on certain claims.
However, the official statement does not provide a study that allows for independent verification of that percentage, nor does it mean that all insured individuals will automatically receive a higher compensation.
Public adjusters also charge fees for their services, typically calculated as a percentage of the compensation. The Florida Department of Financial Services sets limits on those rates.
As a general rule, fees have a limit of 10% for claims related to emergencies declared during the first year, and 20% in other cases, although there are legal exceptions.
Therefore, authorities recommend reviewing the terms of the contract and verifying that the professional holds a state license.
A company that had already been sued for similar restrictions
In October 2025, the Florida Association of Public Adjusters (FAPIA) and the National Association of Public Adjusters (NAPIA) filed a lawsuit against Velocity Risk Underwriters in a Miami-Dade County court.
According to a report from Insurance Journal, the organizations stated that certain clauses used by the company violated the rights of policyholders and the professionals authorized to represent them.
The complaint stated that Velocity could refuse to investigate the damages of a property until the client proved that they had terminated their relationship with a public adjuster.
The associations believed that this condition could put pressure on people who urgently needed to repair their homes.
For their part, representatives of the insurance sector have argued that some public adjusters may exaggerate repair costs, which would inflate the amounts claimed.
The new state investigation seeks to determine whether there were agreements among companies to limit the hiring of public adjusters and, as a result, reduce payments to homeowners.
The citation issued by the Prosecutor's Office requires Velocity to provide records of its relationships with business associations, communications with other insurers, and potential agreements related to those prohibitions.
The announcement comes just a few days after Hurricane Isaias passed through the northwest of Florida, where many homes suffered damage and their owners began to file claims with insurance companies.
On October 11, Florida opened an assistance center for insurance claims in Destin to assist individuals affected by the cyclone.
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