Attorney General James Uthmeier has launched an investigation into whether homeowners insurance companies illegally coordinated to prevent policyholders from hiring licensed public adjusters, issuing a subpoena to Velocity Risk Underwriters LLC as part of the inquiry.
Announced Tuesday, the investigation focuses on insurance policy provisions known as “anti-public adjuster” clauses, which allow insurers to deny claims if homeowners hire independent professionals to assist with the claims process.
The investigation specifically examines whether Velocity and other insurers entered into agreements to restrict the use of public adjusters, potentially limiting claim payouts.
“Florida homeowners—especially those rebuilding after a hurricane—should have a fair chance to get the full value of their claim,” said Attorney General Uthmeier. “We are looking into whether Velocity and other insurance companies worked together to ban public adjusters so they could pay out less money. Insurance companies use their own adjusters. Homeowners should be allowed to hire an advocate on their side too.”
Public adjusters are licensed professionals who represent homeowners rather than insurance companies. Their responsibilities include assessing property damage, estimating repair costs and negotiating insurance claims on behalf of policyholders. The investigation particularly concerns surplus lines insurance policies, which often cover properties considered difficult to insure, including beachfront homes and houses with older roofs.
According to the attorney general’s office, homeowners who hire public adjusters can receive up to 30% more in claim payments than those who do not.
The subpoena seeks documents concerning Velocity’s participation in insurance industry trade associations, communications with competing insurers and any agreements restricting policyholders’ ability to hire public adjusters.
