Florida AG investigates Velocity over insurance policy language

James Uthmeier, the Florida Attorney General, announced an investigation into a clause found in some Florida homeowners insurance policies. This clause allows the insurance company to deny an entire claim if the policyholder hires a licensed public adjuster. Uthmeier issued a subpoena to Velocity Risk Underwriters, stating the investigation is looking into whether the company worked with others to ban public adjusters to reduce payouts.

The investigation centers on a policy endorsement that voids coverage for a loss if a public adjuster is retained. According to the Attorney General’s office, homeowners who hire a public adjuster receive up to 30 percent more on their claims, and the probe examines whether this practice was used to limit payouts.