by Zoltan Hovanyecz | May 27, 2015 | Florida Insurance, Property Damage
Many times, we find that even though a Florida insurance company will offer a policyholder coverage for an insurance claim involving property damage, the insurer will look for every opportunity to pay as little money as possible for the covered damages. Given how often this is done, we felt it is important to discuss a policyholder’s rights when faced with the problem of not having enough money to make repairs to their damaged home or business after suffering a loss with a Florida insurance company.
Some insurance companies in Florida, including the biggest insurer, Citizens Property Insurance Corporation, regularly engage in the business practice of lowballing their policyholders when it comes time to make payment on a covered claim. Unfortunately, without enough insurance money to complete repairs to the damaged home, underpaid policyholders are typically forced to reduce the cost of repairing the damage by:
- Making substandard repairs for less money
- Finding a less qualified and/or less experienced contractor to repair your home for cheaper than a (same may even have to forget about having a contractor entirely)
- Reducing or eliminating certain necessary repairs to reduce to total cost
- Sacrificing on the quality of repairs
However, you do not have to accept the amount offered to you by your insurance company. If you think you were underpaid by your insurance company, contact Schatzman & Hovanyecz, P.A. for a free consultation. We will be able to assess your claim, evaluate your damages, and ensure that you receive maximum recovery while protecting the rights afforded to you by your insurance policy and Florida law.
by Zoltan Hovanyecz | May 15, 2015 | Florida Homeowners Insurance
This post discusses homeowners insurance policyholders’ rights, options and obligations when their homeowners insurance carrier invokes its right to repair (also known as option to repair) for a property damage insurance claim in Florida. Some of the Florida insurance companies currently engaging in the right to repair is People’s Trust, Florida Peninsula Insurance Company, Heritage Property and Casualty Insurance Company, and Prepared Insurance Company. Although the concept of right to repair has been around for quite some time, it is only in recent years that Florida insurance companies have begun making this process part of their everyday business practice.
When an insurance company invokes the right to repair, the insurance company repairs the damages caused to your property by using their own contractor or repairmen. In contrast, on a typical insurance claim where the right to repair is not invoked, the insurance company will just pay the policyholder directly for the dollar value of damage caused to the property. In typical insurance company fashion, by using their own contractors and repairmen, the insurance company can put more money in their own pockets rather than paying it to their policyholder. However, many times the right to repair process can result in:
- substandard repairs
- partial repairs such as resurfacing of materials rather than replacing with new materials
- a total lack of control over the repairs being performed by the insurance company
- unlawful repairs and repairs performed without permits
- lost time while the policyholder has to stay at home to monitor the insurance company’s repairs
Before agreeing to allow your insurance company to repair your property after a loss, it is important to know your legal rights and to make sure the repair is being performed properly and lawfully. If your insurance company has invoked the right to repair for your insurance claim, it is extremely important that you do not sign any documentation presented to you by the insurance company without first talking to an attorney and discussing your rights under your insurance policy.
At Schatzman & Hovanyecz, P.A. we are experienced in handling and litigating right to repair cases successfully, and many times we are able to secure a cash payment rather than allowing the insurance company to repair your home. Contact us for a free consultation regarding your right to repair insurance claim.
by Zoltan Hovanyecz | Apr 21, 2015 | Florida Homeowners Insurance
Do you know what your homeowners insurance policy actually covers?
You call your insurance agent, fill out an application, pay your premiums and years go by without any problems. So there’s no need to review your insurance policy or ask any questions, right?
Unfortunately, if the time comes when you do have to report a claim to your insurance company, before you pick up that phone, it’s important to know that your claim will be covered by your insurance policy. If you do not have the proper insurance policy in place before your loss, there is generally nothing you can do to correct this after damage occurs to your home.
It’s all too common that we run into policyholders who have to pay out of pocket for thousands of dollars of damage because they are either under-insured or have no coverage at all under their homeowner insurance policies. Some of the more surprising examples are insurance policies that only provide $1,000 of coverage or policies that totally exclude water damage. There are also other insurance policies known as “named perils” policies that only provide coverage for a limited number of losses such as fire, theft, volcanoes, and others. Under these types of policies, there is generally no coverage for water damage, plumbing failures, or hurricanes. This can be a major problem when a policyholder realizes this for the first time after reporting their claim to their insurer.
Many times, all it takes to get your policy in check is a quick call to your insurance agent. He or she will be able to answer your questions about what exact type of insurance policy you have and the different types of coverages afforded to you under your policy. Some questions you should ask your agent are:
- What type of policy do I have (H-03, H-06, H-08, etc.)?
- What are my policy limits?
- Do I have coverage for water damage?
- What are the limits to additional coverages (mold, ALE, etc.)?
- Will my current insurance company exercise their right to repair my home in the case of a covered loss?
Ask your agent to explain how the answer to each of these questions affects the coverage afforded to you under your current insurance policy. If you still have questions about your coverage, please contact our office and we will be happy to help.
by Zoltan Hovanyecz | Apr 21, 2015 | Florida Insurance
Among the many complicated obligations contained in an insurance policy, one of the most important is the policyholder’s duty to promptly report the insurance claim to their insurance company. This means that a policyholder should consider contacting their insurance company at the first sight of a potential claim. Insurance companies generally require prompt notice of an insurance claim so that they are able to conduct their own independent investigation of the claim to arrive at a coverage decision. Occasionally however, a situation beyond the policyholder’s control prevents immediate reporting of an insurance claim. Some examples are:
- A policyholder who may not see or know about the property damage until sometime after the incident;
- A policyholder who may not know that there is coverage for their particular situation or damages; or,
- A policyholder who may think that their damages are under their deductible.
If you believe this has happened to you, don’t worry. Even if you fail to report your insurance claim for weeks, months or years it does not mean you are prevented from filing a claim or recovering damages from your insurance company.
If an insurance company denies your claim saying that you did not give prompt notice, Florida law requires that the insurance company prove that it has been substantially prejudiced by the late notice. When considering whether the insurance company has been prejudiced in light of the late notice, the Court may look to see if the insurance company was able to determine coverage for your insurance claim. There are also other considerations in determining prejudice to the insurance company, but this is not a bright line test and is something that must be addressed on a case by case basis.
Hurricane Damage Claims
When it comes to damages from a hurricane, Florida Statute § 627.70132 specifically requires that
claims for property damage caused by a hurricane must be filed within three (3) years of the hurricane making land fall.
Ultimately it is the policyholder’s obligation to report their claim promptly. So if you are unsure about when to report your claim, have questions about an unreported claim, or would like additional information, please do not hesitate to send us an email or give us a call.
by Zoltan Hovanyecz | Apr 21, 2015 | Florida Insurance, Property Damage
This post is a first in our series discussing some common types of insurance claims that consumers may not be aware could be covered by their homeowners insurance policies. This post will address homeowner insurance coverage issues arising from broken, deteriorated, clogged, or otherwise damaged drain lines.
Drain lines, or sanitary lines, are the plumbing lines that run underneath your home and carry away liquid and solid waste to the municipal sewer system or your septic tank. Unlike the plumbing system that brings clean water into your home, drain lines are unpressurized and take waste away from your home by the forces of gravity. There are many older homes in Broward, Palm-Beach and Miami-Dade Counties that were built years ago using cast iron drain lines that are now starting to fail. Like many other metals, cast iron is susceptible to corrosion, rust, deterioration, and damage caused by root growth. When your drain lines are damaged, harmful water containing sewage could be released into your home through open drains, overflowing toilets or sinks, or from other openings in the drain system. Occasionally, the leaking water and sewage can even make its way up through the foundation of the home, typically through and open drain.
Many times, the leaking water or sewage will result in damage to a policyholder’s home leading consumers to question whether they should file a claim or whether such damage is even covered by your homeowners insurance policy. Nevertheless, even if the water damage is covered, many insurance companies will refuse to pay for the repair to the drain lines themselves. The plumbing repairs in these situations can be quite expensive, running into the thousands and tens of thousands of dollars.
The answer of whether your insurance company will provide coverage in such a situation will always depend on the specific facts of your claim; however, there are certain things you can do to ensure the best chance of a positive outcome with your insurance company. First and foremost, call a reputable plumber to diagnose your problem. Sometimes, it could be something as simple as paper towels clogging your drain lines. Other times, it could be something much more costly and serious such as a total drain line failure. It is important, and likely even a requirement under your insurance policy, that you take reasonable steps in addressing the cause of the damage in order to minimize any further damage, so obtaining a diagnosis from a licensed, qualified plumber is a must. Always request invoices and documentation from your plumber and never throw away any damaged plumbing parts or pieces until an inspection has been conducted by your insurance company.
Next, it is crucial that you take photographs of any water, sewage or damage in your home. Ask your plumber to take photos and use your own camera or cell phone to take your own. Your insurance company will want to see these photos. The more photographs and documentation you have to support your claim and damages, the better.
Finally, you are going to need to promptly contact your insurance carrier to report your claim. This can be the beginning of a daunting and lengthy process and its important that you understand you rights and obligations under your insurance policy. Give us a call today to discuss the specific facts of your claim and what we can do to help you through the process.
