Florida Attorney General James Uthmeier has opened an investigation into Velocity Risk Underwriters LLC over homeowners policies that bar people from hiring their own public adjuster, and his office has sent the company a document subpoena (via Florida Attorney General's Office).
The target is what the AG calls "anti-public adjuster" clauses. Under that kind of policy language, if a homeowner brings in a licensed public adjuster to work the claim, the insurer can reject the entire claim. The AG's office says Velocity writes thousands of these policies in Florida, representing millions of dollars in premiums.
The subpoena asks for records on Velocity's trade group memberships, its communications with other insurers, and any agreements to keep homeowners from using public adjusters. The office says it's looking at whether Velocity "and other insurance companies" coordinated on the restriction, though no other insurer was named. The release, dated Oct. 20, describes an investigation only. It doesn't announce any findings or charges.
"Homeowners should be allowed to hire an advocate on their side too," Uthmeier said, adding that insurers appear to have "worked together to ban public adjusters so they could pay out less money."
Public adjusters are licensed professionals who work for the policyholder rather than the insurance company. They inspect damage, put together repair estimates and negotiate with the carrier. The AG's office says homeowners who use one can get up to 30 percent more on their claims; that figure comes from the release and wasn't broken down. FOX 13 in Tampa reported the same details and noted that Velocity's policies are surplus lines coverage, the kind often used for harder-to-insure homes such as beachfront houses and homes with older roofs. FOX 13 didn't report any response from Velocity.
This fight isn't brand new. A year ago, two public adjuster trade groups, the Florida Association of Public Insurance Adjusters and the National Association of Public Insurance Adjusters, sued Velocity in Miami-Dade County Circuit Court over the same type of endorsement, according to a write-up of the complaint by attorney Chip Merlin, whose firm represents policyholders. That complaint quoted policy language saying the insured "shall not hire, engage, retain, contract with, or otherwise utilize the services of a public adjuster," and argued the clause violates Florida's deceptive trade practices and antitrust laws. The write-up also notes that surplus lines carriers aren't subject to Florida's usual form and rate regulation.
Why it matters for Contractors
If you do roofing, restoration or storm repair in Florida, you see the fallout from claim fights every week. Homes with older roofs and coastal properties are where surplus lines policies often show up, and those are the jobs where a homeowner might want a public adjuster in their corner.
Keep your own lane clear, though. Florida law already bars contractors from acting as public adjusters: no interpreting policy provisions, advising on coverage or adjusting claims unless you hold a public adjuster license. Violations can bring discipline and fines up to $10,000 each under section 489.147, the same law that bans deductible waivers and referral fees.
The practical move is simple. When a customer's claim is stuck, don't tell them what their policy says. Tell them to read it, including any endorsement about public adjusters, before they hire one, and to talk to a licensed public adjuster or attorney. Then give them a solid, itemized estimate. That's your job, and it keeps you on the right side of the law.