Florida Attorney General investigates Velocity Risk Underwriters over insurance claim restrictions

Florida Attorney General James Uthmeier has launched an investigation into Velocity Risk Underwriters, LLC, regarding potential illegal agreements to restrict homeowners from hiring licensed public adjusters.

The probe focuses on “anti-public adjuster” clauses within insurance policies. These provisions allow insurance companies to reject an entire claim if a policyholder employs an independent professional to assist with the claims process. Uthmeier’s office issued a subpoena to Velocity, demanding records of communications with other insurers and membership in trade groups to determine if companies coordinated to ban public adjusters to reduce claim payouts.

Public adjusters are licensed professionals who work exclusively for the homeowner to assess damage and negotiate settlements. Data indicates that homeowners using public adjusters may receive up to 30 percent more in claim value. The investigation particularly concerns the surplus lines insurance market, which covers high-risk properties such as beachfront homes and those with older roofs.