Citizens’ CEO: AOB reform could slash insurance rates by 20 percent for a half-million homeowners
Jun 20, 2018
Unless the state Legislature implements restrictions on assignment of benefits (AOB) agreements between property owners and contractors, Florida’s publicly owned property insurer could be litigated into imposing “dramatic” rate hikes on nearly a half-million homeowners.
Citizens Property Insurance Corporation President and CEO Barry Gilway said last week that the state-backed insurer of last resort will spend at least $150 million this year in legal expenses related to water damage lawsuits in the wake of last September’s Hurricane Irma.
At least $80 million of that will be spurred by AOB lawsuits, he said, adding, “There is no doubt in my mind that 60 percent of these are manufactured claims, what we call ‘mined claims’” orchestrated by 16 law firms in South Florida’s Miami-Dade, Broward and Palm Beach counties.