If deployed quietly by a citizen property insurance company, there may be few public coordinators available to help policyholders resolve claims from the insurance company.
Like lawyers, public adjustments are employed by policyholders to represent them in determining the value of insurance claims. Usually, they take over communication with the insurance company until they reach the contract, ensuring a higher settlement than the policyholder they work for.
Florida coordinators say they were shocked to receive a letter from a state-run citizen property insurance company.
The letters from the citizens began going out to the public adjusters earlier this month. The name was expressed as a response to a request for information about why it has not been sent recently.
The letter states, “Our policy requires that you pay the insured unless someone other than the insured is legally entitled to pay the claim, such as a guardian or other loss payer.”
The adjuster’s payment rights continue by noting that it is based on a contract between the adjuster and the insured, adding that “the insured is not the insurer, but is responsible for payments to the party that it contracts.”
Companies often follow citizens’ leads when adopting unpopular policies. If so, public coordinators may find other jobs, Nancy Dominguez, executive director of the 750 Florida Independent Insurance Association, told the South Florida Sun Sentinel.
If that happens, she said it will be less available to help policyholders file claims after hurricanes and other disasters.
“Public adjusters are more likely to leave the industry if they find it difficult to get paid for their jobs because their fees are not protected,” Dominguez said. “This makes it much more difficult for policyholders to get a second opinion and find that experts are paid fairly for their losses. I think that’s the intended outcome.”
Civic spokesman Michael Peltier said the decision was made by members of the company’s executive leadership team, consisting of senior leaders at the company.
“This procedural change will make policyholders more likely to recover and will not affect contracts between policyholders and public adjusters whose fees are compliant with the law,” Peltier said.
Public adjusters are not concerned about most policyholders who voluntarily pay the percentage of claims specified in written contracts, Dominguez said.
But if the adjuster’s name isn’t on the check, she said some might hold back. “What happens when there is a policyholder who decides, ‘Oh, I’m not going to pay anyone. I’m protecting this money for some reason’? do you know?
The statement in the citizen’s letter is inconsistent with information posted on the company’s own website until recently, Dominguez said.
She provided documents copied from the “FAQ” web page on the civic website.
The response explained that citizens, the state’s so-called insurance companies, the state’s so-called last resort, include public coordinators regarding claim checks when a statement signed by the policyholder and public coordinator is filed for claims. “Citizens must protect the interests of public adjusters by including public adjusters as additional recipients in checks,” he said.
The response was last updated on April 28th. However, on Monday it was no longer listed on the citizens’ website.
The FAQ remained on the citizens’ website on Monday, entitled “Why are mortgage companies included as beneficiaries of settlement checks?”
The answer explains that mortgage companies need to check if they have “insurance interest in damaged property.”
State law limits public adjuster fees to 10% and to 20% for non-emergency claims for claims arising from declared emergency conditions.
Insurance companies are often wary of participating, as public coordinators usually ensure a higher settlement than policyholders working on their own. In public meetings, citizen groups groups public counsels with plaintiffs’ attorneys when reporting differences in costs between claims filed by policyholders, with or without “representation.”
Last Wednesday’s Dominguez Facebook page post received so many calls from members on the issue that I had to turn off my phone and be able to concentrate.
Amy Lewis responded to this post by questioning the reasons for the new policy the citizens stated and noting that the company has no contractual relationship with the mortgage company.
“The reason mortgage companies are placed on checks is because of contracts with insured,” Lewis posted. “Mortgage companies are legally entitled to payments per citizen policy, just like public coordinators.”
Another respondent questioned whether private market insurers would soon follow the lead of their citizens.
“They choose our industry, and that’s not uncommon,” Dominguez says. “You know, we are scapegoats, because we are supposed to pay them more.
Ron Burtibise covers South Florida Sun Sentinel’s business and consumer issues. He can be contacted by telephone at 954-356-4071 or by email at rhurtibise@sunsentinel.com.
Original issue: June 17, 2025 9:43am EDT
