(C) Common Dreams
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Florida Home Insurance Crisis Bleeding Into Louisiana [1]
['The Weiss Ratings Press Team']
Date: 2025-08
Palm Beach Gardens, Fla., May 13, 2025 — Weiss Ratings, the nation’s leading independent rating agency, has revealed critical data highlighting how Florida’s property insurance crisis is impacting Louisiana homeowners.
The ratings agency has identified three alarming trends among insurers operating in both states, raising concerns about financial stability and claims denials.
“Louisiana homeowners are being shortchanged by insurers prioritizing profits,” said Dr. Martin D. Weiss, founder of Weiss Ratings. “Regulators must act, and homeowners should choose insurers with fair practices and strong ratings.”
According to data gathered by Weiss Ratings, insurers in Louisiana are increasingly doing three things: They’re closing claims with no payment whatsoever. They’re using underwriting losses to lobby for rate hikes while making investment profits that are far larger. Plus, they’re outsourcing to affiliates, which reduces funds available to pay claims.
More Claims Closed Without Payment
Nationwide, insurance companies closed 41.9% of homeowner claims with no payment in 2024, up dramatically from 25.8% in 2004. But in Louisiana, the denial rate was even higher at 44.6%.
The table below shows the large insurers operating in the state with the highest denial rates.
Large Insurers Operating in Louisiana Closing More Than
Half of Homeowner Claims with No Payment
(% of total claims closed as reported at year-end)
Insurance Company Name State
Domiciled 2024 2023 Kin Interinsurance Network FL 68.3% 44.0% Spinnaker Insurance Co. IL 60.6% 49.3% Elevate Reciprocal Exchange TX 54.9% 50.5% SureChoice Underwriters Recpl TX 51.3% 51.1% Allied Trust Insurance Co. TX 51.2% 43.0% Safepoint Insurance Co. FL 51.2% 31.6% Allstate Vehicle & Ppty Ins Co. IL 50.9% 47.1% Data Source: Companies' 2023 and 2024 annual statements, schedule P.3A,
columns 11 and 12, row 11. Excludes claims subsequently reopened.
Seven companies closed over half of homeowner claims with no payment in 2024.
Kin Insurance closed 68.3% of claims, Spinnaker Insurance closed 60.6%, Elevate Reciprocal Exchange closed 54.9% and SureChoice Underwriters closed 51.3% — all with zero payment.
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[1] Url:
https://weissratings.com/en/weiss-news/florida-home-insurance-crisis-bleeding-into-louisiana
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