Tag: Florida Homeowners Insurance Lawyer

In late May, Coastal Breeze News featured an important article discussing when homeowners have tried for long enough to settle their Hurricane Irma claims with their insurance carriers, and whether there has been insurance bad faith. Below, we discuss this issue in greater detail.

Florida Homeowner Claims Bill of Rights

Florida has what’s known as the Homeowner Claims Bill of Rights, which every insurance company providing residential property insurance policies must provide to homeowners within 14 days of receiving any initial communication related to a claim (with the exception of any “state of emergency” declared by the Governor).

Specifically, the Bill of Rights provides that you have the right to:

The Bill of Rights also provides a number of recommendations, including:

Note, however, that the Bill of Rights does not create a civil cause of action against an insurer. When an insurance company acts in bad faith, a separate law in Florida creates a statutory bad faith cause of action against the insurance company which allows homeowners to recover costs and attorneys’ fees if they prevail. Still, it is wise to work with an experienced attorney to first file a Civil Remedy Notice with the Florida Department of Financial Services that the insurance company is acting in bad faith.

Unfortunately, hurricane season was catastrophic this year. Because of warming sea temperatures, those like Harvey and Irma have triggered devastating and widespread flooding, with nearly 6.5 million people or a third of Florida’s population having to evacuate.

Thousands of Floridians are already having to apply for temporary disaster unemployment relief claims with the State due to Irma, most of them in Broward, Keys, and Miami-Dade counties. Residents are able to receive up to $275 per week for up to 26 weeks through March of 2018 through the Disaster Unemployment Assistance Program. This past year, the State had extended the application deadline to October 31.

But what about property damage? Most Floridians rely on their insurance companies to help address any property damage suffered after hurricanes. And yet, many insurance companies will insist that they cannot cover property damage that is due to flooding, even if you live in an area where flood insurance was neither mandatory nor recommended because it historically has not had flooding issues.

When it comes to running a homeowners association or condominium and all of the upkeep and operations associated with these types of properties, it is important to understand the ins and outs of insurance coverage and liability.

For example, “bare walls” insurance plans are often discussed in associations that want to limit the cost of water damage claims because each owner (versus the homeowners association) restores their own unit interior (including cabinets, walls, and floor coverings, as well as other interior finishes).

What Is “Bare Walls Coverage”?

“Bare walls” coverage is a type of insurance coverage purchased by condo or homeowners associations which typically applies to communally-used features in buildings (such as entryways). Associations typically use costs that they charge in HOA fees to cover this type of insurance policy. However, it is the most limited type of coverage that an association can purchase. Individual unit owners are required to purchase their own insurance to cover anything that is damaged within their units (for example, toilets, appliances, etc.).

With Hurricane Irma quickly approaching Florida, Wind and storm damage will likely occur.  If you become the victim of storm and flood damage, you will need to file a claim with your insurance company to start the recovery process.  You pay a lot of money for your insurance so it makes sense that if your home suffers damage, you will want to make a claim.  Depending on the cause of the damages and the type of damages your home suffers, your insurance company will be able to provide coverage based on the kind of policy you have. It is important that you take photographs of your personal belongings and home to document the condition of your home and the presence/existence of those belongings.

Your Claims Process May Be Different Depending On The Type Of Claim

Was it flood, wind, rain, loss of use, emergency mitigation? Or maybe temporary repairs?  Hopefully in all of these cases, especially if your home suffered catastrophic damages, by using these steps you will be ready to get your claim settled quickly and get the help you deserve from your insurance company.  Here are the 5 basic steps in filing an insurance claim.

Recently, one of the largest home builders in the nation lost a $16.3 million judgment to a condo association after the judge found that it had engaged in deceptive practices, leaving the association in poor financial condition.

The company—D.R. Horton—started developing the association—Majorca Isles Master Association in Miami Gardens—back in 2005, but decided to stop building when the recession hit. Because of this, many of the condo owners stopped paying their fees, resulting in a deficit for the association. In response, the directors appointed by Horton diverted funds to pay the expenses of the associations, breaching their fiduciary duty to the association, and ultimately shifting the economic loss of the company to the homeowners themselves by cutting services and amenities.

When Horton turned over management of all the associations to the homeowners in 2011, they had gaping holes in funding, leading to a Chapter 11 bankruptcy reorganization filing. The company also failed to keep detailed financial records and mischaracterized the income, recording unpaid assessments fraudulently as assets in order to give off the false appearance that the association was solvent, even though it was not.

A new survey conducted by PolicyGenius reveals that while many Americans may believe that they understand their insurance policies, in fact, they do not, resulting in the mistaken belief that they are often the victims of bad faith insurance decisions. Unfortunately, this mistake could end up costing policyholders a fortune: Not only did the survey find that only four percent of policyholders were able to correctly define the terms that correlate their co-pays, but most individuals did not understand the basics when it comes to co-pays, deductibles, and out-of-pocket maximums, even though they were overly-confident of their understanding.

Unfortunately, not only are consumers overconfident about their own out-of-pocket costs, many aren’t confident at all when it comes to selecting the right insurance plan for their needs. This results in policyholders not only being at risk of choosing the wrong insurance plan, but also misunderstanding their exposure to charges when they receive treatment.

Anyone who’s lived in Florida knows that we go through a “state of emergency” from time to time, either due to heavy rains, tropical storms, hurricanes, or other natural disasters. When there are events which give rise to property damage, this will inevitably lead to insurance disputes, as upkeep and welfare issues arise with respect to all of the various types of damage these disasters can bring.

With the number of condominiums and homeowners associations on the rise in the Sunshine State, inevitably, questions come up concerning whose responsibility it is to ensure that property and people are protected when these disasters occur. In that respect, it can be helpful for association boards to make it clear to residents, beforehand, what their responsibilities are with respect to their authority under the law.

The Law in Florida

Homeowners and condominium associations are provided with a certain amount of powers and protections under Florida laws. For example, under the Florida Condominium Act, the board of administration—in response to damage caused by an event for which a state of emergency is declared—may partake in activities necessary to protect the health, safety, and welfare of the association and mitigate any further damage, such as conduct board meetings, name assistant officers, enter into agreements with local counties and municipalities and/or contracts for items or services, implement a disaster plan, require evacuation, and engage in other necessary activities to protect the property and its residents.