by Zoltan Hovanyecz | Jul 24, 2015 | Florida Homeowners Insurance, Florida Insurance
In Florida, most homeowners insurance policies contain a clause stating how soon a policyholder is required to report their insurance claim to the insurance company. Although each insurance policy differs slightly regarding notice to the insurance company, most policies consist of essentially the same reporting requirement. When a loss occurs a policy holder must:
give prompt notice to us or our agent
For example, during hurricane Wilma, many policyholders suffered damage to their roofs that was not immediately noticeable so these policyholders did not file insurance claims. It is not until sometime later that the policyholder’s roof would begin to leak from the damage caused by the hurricane. Because of this, some policyholders first reported their hurricane Wilma claim to their insurance company months and sometimes years after hurricane Wilma came through Florida. These “late reported” claims resulted in years of litigation in Florida Courts regarding what constitutes “prompt” notice and whether the insurance company is required to pay for the insurance claim when the notice is not “prompt.”
Reporting of Non-Hurricane Related Insurance Claims
For typical property insurance claims that do not result from hurricane damage, such as plumbing leaks, fires, drain backup, etc., “prompt” has been interpreted by Florida courts, in the most simplest sense, to mean that you must report your claim such that the insurance company is not prevented from conducting a full independent investigation and determination of coverage for your insurance claim under your insurance policy. Florida courts typically refer to this concept as “prejudice”, and depending on how “prompt” your reporting was, prejudice may be presumed against you and you may be required to prove that the reporting of your insurance claim did not “prejudice” the insurance company. For a full discussion of the legal standard for “prejudice”, you can read the Third District Court of Appeals case of Hope v. Citizens Property Insurance Corporation here. Some of the things that may considered “prejudicial” to the insurance company are:
- Repairs made to the home such that the insurance company cannot inspect the damages that existed at the time of the loss
- Discarding plumbing parts, pipes, or damaged building materials making them unavailable for inspection by the insurance company
- Failing to protect the property from additional damage resulting in further damage that makes it impossible for the insurance company to inspect the damages as they existed at the time of loss
Although these factors may make it more difficult to recover from the insurance company, they do not necessarily preclude you from doing so. Contact us for a free evaluation of your claim.
Reporting of Hurricane Related Insurance Claims
Since hurricane Wilma, the Florida legislature has created Fla. Stat. § 627.70132 which specifically address the time in which an insurance claim involving damage from a hurricane must be reported to the insurance company:
A claim, supplemental claim, or reopened claim . . . for loss or damage caused by the peril of windstorm or hurricane is barred unless notice of the claim . . . was given to the insurer . . . within 3 years after the hurricane first made landfall or the windstorm caused the covered damage.
If you have any questions about your insurance claim, please contact us.
by Zoltan Hovanyecz | Apr 21, 2015 | Florida Insurance
Citizens Property Insurance Corporation approved a statewide average rate increase for their homeowners insurance policies in the amount of 7.5%. Rate increases to wind only policies and sink hole policies are expected to be even higher. Although this rate increase must still be approved by Florida’s Office of Insurance Regulation, consumers insured with Citizens will likely see a notable increase in their homeowners insurance premiums as a result of the rate increases. However, it is important for the consumer to understand the difference between insurance rates and insurance premiums in order to understand how rate increases will affect how much you pay for homeowners insurance in Florida.Insurance rates and insurance premiums are different. An insurance rate is the insurance company’s base charge per dollar of insurance coverage. Rates differ based on a number of factors including the age of home and the geographic location. For example, a home located closer to the coastline will generally have higher rates than a home further from the coastline. The rate establishes the foundation on which your premium is based. An insurance premium is the total cost of your insurance coverage. A premium includes all factors of your insurance policy including limits of coverages, the amount of your deductible, any discounts, etc. So, a 7.5% increase in insurance rates does not equal a 7.5% increase in insurance premiums. Nevertheless, Citizens policy holders should expect to pay more for their homeowners insurance coverage.
A direct link to the Citizens Property Insurance Corporation press release can be found here.
by Zoltan Hovanyecz | Apr 21, 2015 | Florida Insurance
Recently, Citizens insurance policies held by South Florida residents are being assumed by a small group of untested insurers. These companies include Heritage Property and Casualty and Weston Insurance., both of which have only been licensed by Florida for less than a year. The concerns are that these upstart insurers may not be able to withstand the financial burden of an active or destructive storm season in Florida. As a result, it is imperative that consumers understand the consequences of their policies being taken out by new upstarts.
Unfortunately, the way the take out system works provides customers with very little consumers protection. When a consumer is targeted for take out, they are sent notification that their Citizens insurance policy will be assumed by another insurer. If the consumer does not respond to the initial letter within 30 days, they receives a Notice of Assumption allowing the consumer another 30 days to respond. So unless the consumer takes action to opt out of the assumption, the consumer’s insurance policy will be taken out by the prospective insurer. Any consumer’s currently insured by Citizens should be on the look out for correspondence regarding a take out of their policy so they can act quickly within the required time period.
A link to Citizens Property Insurance Corporation’s guidelines on take outs can be found here.
