Can Insurance Companies Repair Damage Instead Of Paying Out Cash In Orlando?

The “option to repair” is a common clause in Florida property insurance policies, and it allows insurers to avoid paying out cash settlements in many cases. But are these clauses sometimes unenforceable? This is a common issue for insurers, as many homeowners prefer cash payouts. A recent case in Florida provides some degree of optimism for insurers, especially those who work with experienced insurance defense attorneys in Orlando.

Insurance Company Wins Appellate Victory Over “Option to Repair” 

In May of 2025, Insurance Business reported that a major insurer in Florida had won an important appellate victory. This case revolved around the insurer’s “option to repair” roof damage – a common issue that all Florida insurers are undoubtedly familiar with. Although the specific wording of most policies describes this as an “option” to repair, insurers actually have the “right” to repair. This is something that the recent appellate decision clearly affirms.

The dispute began when a couple in Florida incurred roof damage and filed a claim. Their insurer exercised its right to repair, instructing the couple to let a contractor fix the roof. They also told the couple to pay their deductible directly to the contractor. However, the couple refused to comply. They pointed out that the contractor lacked a roofing license and argued the insurer violated their agreement by failing to disclose this fact.

The insurance company sued, but the couple claimed victory at the trial court level. The trial judge decided that if the couple had allowed the contractor to fix their roof, they would have been guilty of allowing illegal work on their home.

Florida’s Second District Court of Appeal disagreed with this decision and reversed it. A closer look at the relevant laws revealed that there was nothing wrong with allowing a general contractor to manage roofing repairs. As long as they subcontracted the work to a licensed roofing crew, this would have been perfectly legal. In addition, the appellate court found that the insurer had no legal obligation to disclose whether the contractor had a roofing license. Their only real requirement was to “instruct” the contractor to reveal their licenses, which the insurer did.

This decision is a major win for all insurers in Florida, reinforcing the right to repair. Insurers may face pushback from homeowners who would rather receive cash settlements, but they should be able to enforce these managed repairs without major issues.

Can an Insurance Defense Attorney in Orlando Help My Organization? 

If your policyholder is pushing for a cash payout instead of allowing you to exercise your “option to repair” clause, you might want to contact an experienced insurance defense attorney in Orlando. These legal professionals can help you pursue appellate victories with confidence, regardless of the specific dispute in question. Contact HD Law Partners today to learn more about your next steps.

Sources: 

insurancebusinessmag.com/us/news/claims/peoples-trust-wins-florida-appeal-in-managed-repair-dispute-with-homeowners-535304.aspx

states.repair.org/states/florida/