Fort Lauderdale Property Insurance Company Faces Consequences for Fraud

It is always encouraging to see people held accountable for property insurance fraud in Fort Lauderdale. As all Florida residents know, property insurance fraud has become a major issue in the Sunshine State, and some even blame rising premiums on this phenomenon. But while average homeowners and contractors are certainly capable of carrying out fraud, the insurance companies themselves are sometimes also guilty. This was made clear after a property insurance company based in Fort Lauderdale faced consequences for fraud.

Fort Lauderdale Property Insurance Company Accused of Defrauding the “Cat Fund” 

In early April of 2025, the Insurance Journal reported that a major property insurance company based in Fort Lauderdale had been fined and held accountable for fraud. The company settled a lawsuit filed by the Florida Hurricane Catastrophe Fund – also known informally as the “Cat Fund.” The Florida Attorney General noted that the company will now pay a $4 million fine.

Meanwhile, the Cat Fund will not have to pay $30 million to the company for fraudulently backdated claims filed by the company. The Florida Attorney General noted that these backdated claims were intended to maximize reimbursement from the fund – which is a tax-exempt reinsurance program that covers losses suffered by property insurance companies after severe hurricanes.

This fraud was exposed by a whistleblower who was working for the insurance company when it was filing these backdated claims. Based on this whistleblower report, the Office of the Attorney General launched an official investigation into the company to confirm the allegations.

The investigators found that many of the claims had nothing to do with Hurricane Irma – and they did not qualify for reimbursement under the Catastrophe Fund. When confronted with this, the company quickly reversed course – agreeing to abandon its efforts to seek reimbursement under fraudulent pretenses.

Note that representatives of the insurance company are strongly denying that what occurred was, in fact, fraud. Instead, they described it as part of a “commutation” process, which they say is “standard for all insurers.” Representatives also stressed that the two parties had reached a mutual commutation agreement.

While this might be true, it doesn’t really explain why the company was fined millions of dollars. It’s also worth noting that the company was forced to pay all of the attorney fees associated with the case – a penalty usually reserved for the “losers” of legal disputes.

 Can a Property Insurance Lawyer in Fort Lauderdale Help Me? 

At Geyer Fuxa Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Sources: 

insurancejournal.com/news/southeast/2025/04/02/818094.htm

palmbeachpost.com/story/news/state/2025/04/03/universal-property-casualty-insurance-fined-4-million-fraud-allegations-florida/82774678007/