To help storm victims, Florida unveils free service that will review signed contracts for fraud

Victims of recent hurricanes in Florida who have signed contracts with public adjusters or repair contractors can have those contracts reviewed for free by attorneys working for the Florida Department of Financial Services.

If any provisions of the contract are illegal, the attorneys will tell homeowners how they can cancel the contracts and avoid becoming victims of fraud.

Chief Financial Officer Jimmy Patronis visited an area of Palm Beach County that was struck by tornadoes earlier this month to unveil the new fraud-fighting service called “Check My Contract.” Residential and commercial insurance policyholders can access the service, which went online on Wednesday, at preparefl.com or myfloridacfo.com/division/consumers/check-my-contract.

Attorneys will analyze the contracts for evidence of fraudulent behavior and to ensure that they comply with Florida law, Patronis said. If they contain illegal provisions, the department will advise policyholders how they can get out of them, Patronis said.

Patronis announced the service while at Coconut Park in West Palm Beach, where one of 15 powerful tornadoes formed in South Florida on Oct. 9 as Hurricane Milton prepared to strike the southwest part of the state. He said “fraudsters” often swoop into devastated communities to take advantage while victims are still in shock.

“Unfortunately, post-storm fraud is an epidemic in our state,” Patronis said, “and I will not stand by and let our communities be victimized first by the storm damage and then again by bad actors looking to make a quick buck.”

Historically, contractors have used an affidavit called an Assignment of Benefits to take control of policyholders’ claims, Patronis said.

After convincing homeowners to sign the affidavit, the contractor can then take control of the claim and deal directly with the insurance company, sometimes by filing suit in the policyholders’ name. Such assignments were common until the state Legislature outlawed them in a series of reforms over the past several years.

In many cases, contractors now require clients to sign a form called a Direction to Pay in which the policyholder authorizes the insurance company to pay the contractor directly, Patronis said.

Patronis offered no numbers of arrests of suspected fraudsters since hurricanes Helene and Milton struck the state but said 130 fraud investigators have been patrolling damaged neighborhoods trying to protect residents from “fraudsters” trying to “make a quick buck.”

After Hurricane Ian struck in 2022, the department conducted 76 fraud investigations that led to the arrests of 16 people, Patronis said.

“Not every roofer, contractor, public adjuster is offering you a contract that is totally in compliance with Florida statutes,” he said.

And not all public adjusters and repair contractors are unscrupulous, Patronis said. “If you’re happy with your public adjuster, continue doing business with him. It’s a legal profession,” he said.

A spokeswoman for the Florida Association of Public Adjusters said the group has shared “countless” tips about insurance fraud with the Department of Financial Services. She said policyholders can verify public adjuster and contractor licenses at the website BeClaimSmart.com.

Patronis urged storm victims not to sign any contracts until they notify their insurance agent or their insurance company. “Get (the insurer) on the hook for your damage,” Patronis said. “Get them on the hook for repairs. When your insurance carrier is notified, in most cases they already have roofers on standby. They have water mitigation companies on standby. They have tree trimmers already on standby.”

State laws enacted in 2023 give homeowners 30 days to rescind contracts signed with public adjusters and 10 days to rescind contracts signed with roofing contractors, Patronis said.

“We learn something from every storm,” he said. “We learned that we need to give people a little bit of breathing room in order to make decisions with a clear head.”

Patronis spokesman Devin Galetta didn’t provide an estimated amount of time that the web portal will remain available. “This is a pilot program to better understand consumers’ needs following storms,” he said. “The department will assess needs and resources as the pilot program progresses.”

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