Just before Hurricane Milton made landfall on the West Coast of Florida, state officials pushed through an emergency rule aimed at insurance companies in an effort to deter unfair claims practices and post-storm fraud.

The Hurricane Milton CFO Emergency Rule 69BER24-4 prohibits desk adjusters from modifying initial estimates, unless the revised estimate:

• • Indicates all estimates of loss that have been modified from any prior estimate,
  • Provides a detailed explanation as to why each change was made; and
  • Includes the identity of the adjuster who is responsible for each change to an estimate.

When adjusting software is used, the rule:

• • • Requires estimates to include an itemized, per unit estimate of damage to the property, including itemized information on equipment, materials, labor, and supplies required to effectuate repair.
    • Requires estimates to utilize pricing data that consists of unit-cost breakdowns consistent with those that may be expected from a contract or repair company in the applicable geographic market area where a claim occurs.
    • Prohibits adjusters from modifying pricing applied by electronic estimating software, unless the adjuster can demonstrate that modification is required to produce an accurate estimate.
    • Requires that a written estimate of loss be provided to the insured, including the line-item estimate produced by the electronic estimating software, and if any changes were made, a variation report or similar report identifying changes made by the adjuster, and an explanation of the reason for such changes.

Lastly, the rule specifies that adjusters need to retain all versions of loss estimates as required by law.

“During disasters, it’s imperative that our insurance professionals and consumers have the tools they need to file insurance claims accurately and quickly. By cutting through red tape before the storm hits, we can give vital guidance that will lead to a smoother claims process for policyholders,” said CFO Jimmy Patronis.