The Real Deal Miami

New rules may limit assignment of property insurance benefits to contractors

Florida Insurance Commissioner David Altmaier may impose new rules after state legislators failed to do so

Florida Insurance Commissioner David Altmaier

Florida Insurance Commissioner David Altmaier may take regulatory action to limit abuses when home owners pay for repair work by assigning benefits in their property insurance policies to contractors.

State legislators failed during their spring session to agree on a bill limiting the assignment of benefits to contractors, which insurance companies have criticized as a frequently fraudulent practice, especially when claims for water damage are involved. Critics say the practice is raising the price and reducing the availability of property insurance in Florida. [Orlando Sentinel] Mike Seemuth