The True Test of House Bill 568: Will Kentucky Protect Its Flood Victims?

Kentucky is currently battling record-breaking rainfall and devastating flash floods, which have already claimed the lives of four people.¹ Reflecting on the damage, Kentucky Governor Andy Beshear stated that the state “got hit with record or almost record amounts of rain in very short periods of time.”

While families are left to salvage what remains of their homes, they face a systemic, uphill battle. This catastrophe hit at the absolute worst time for Kentucky property owners.

This historic flooding comes right after Kentucky passed House Bill 568, a law that heavily restricts public adjusters. It halted the industry by preventing new licensing for at least the next two years and strips adjusters of their right to negotiate directly with insurers on behalf of policyholders.²

With this new legislation, Kentucky now joins four other states including Alabama, Alaska, Arkansas, and South Dakota as one of the few states that refuse to fully recognize public adjusters.

Because of House Bill 568, the burden of fair play now falls entirely on the insurance companies. Flood victims are left incredibly vulnerable, forced to navigate extremely complex claims during the worst moments of their lives without independent representation.

A public adjuster’s job is simple: to level the playing field. Insurance companies are professionals at protecting their own bottom lines and offering lowball payouts. Public adjusters exist to fight back against those tactics and ensure families get exactly what they are owed under their policies.

Governor Beshear rightfully declared a state of emergency, acknowledging the immense destruction, yet he signed the very bill that severely restricts the professional help Kentuckians need to rebuild. By cutting off access to independent public adjusters, the state is forcing disaster victims to face multi-billion-dollar insurance companies completely on their own.

The state has removed the people’s shield. Now it’s time for lawmakers and insurance companies to prove that citizens don’t need it.

To the Insurance Providers: If you claim to put policyholders first, then step up and help the people of Kentucky right now, without an advocate forcing your hand.

To the State of Kentucky: Since you have stripped citizens of their ability to hire independent representation, you must now step up and be the advocate your population no longer has. If we are truly not needed, prove it.

If the people of Kentucky begin receiving rejected, delayed, or undervalued claims, the truth will be undeniable: public adjusting is not a barrier to recovery, it is an absolute necessity to advocate for the insured.