Florida AG targets insurance policy rules banning public adjusters

TALLAHASSEE, Fla. - Florida Attorney General James Uthmeier has opened an investigation into Velocity Risk Underwriters, LLC, over alleged policy rules that prevent homeowners from hiring public adjusters.

Florida insurance policy probe

What we know:

State officials issued a subpoena to Velocity Risk Underwriters, LLC, seeking documents related to potential illegal agreements that stop homeowners from using licensed public adjusters. Homeowners who hire a public adjuster can receive up to 30 percent more money on their insurance claims. The inquiry focuses on "anti-public adjuster" clauses that allow insurance companies to reject entire claims if an adjuster is hired.

Velocity insurance records demanded

What we don't know:

Officials have not yet confirmed whether additional insurance companies are facing formal subpoenas. State investigators have not revealed the total amount of money homeowners may have lost under these specific policy clauses.

Policy rules restrict claims

The backstory:

Certain properties, such as beachfront homes or houses with older roofs, are often covered under special surplus lines policies. Public adjusters inspect damage, calculate repair costs, and handle negotiations directly with insurance providers. Insurance companies utilize their own adjusters during claim reviews, leaving homeowners without separate representation if public adjusters are banned.

Subpoena demands trade records

What's next:

The subpoena requires Velocity to hand over records concerning trade group memberships, communications with rival insurers, and agreements restricting public adjusters. Velocity currently writes thousands of these policies across Florida, representing millions of dollars in premiums.

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