4 Important Homeowners Insurance Rights
It’s important to know that as a homeowners insurance policyholder in the state of Florida you have rights under the law when dealing with your insurance company. In a perfect world you assume that when something unexpected happens to your home, your insurance company will be there for you every step of the way to help you put your home back together.
Unfortunately, this is usually not the case.
One day you may find yourself in the frustrating position of getting the runaround from your insurance company after opening a claim for damages. The Tampa Bay Times recently reported that as of [September 2019], more than 18,000 Hurricane Michael claims (about 12% of all the storm’s claims) were still open and local residents have complained of insurance companies giving low-ball estimates or dragging out the claims process. (1)
Although homeowners rights could be stronger, Florida law holds that Insurers doing business in the state of Florida must abide by certain guidelines or potentially face significant financial ramifications. While this list is not exhaustive, it’s a summary of some of the more pertinent homeowners insurance policyholder’s rights.
1. RIGHT TO A FULL COPY OF YOUR POLICY
In Florida, you have the right to a full copy of your policy from your insurance company. Florida Statute 627.4137 states that once a written request has been made by the policyholder, the insurance company must provide:
(i) The name of the insurer.
(ii) The name of each insured.
(iii) The limits of the liability coverage.
(iv) A statement of any policy or coverage defense which such insurer reasonably believes is available to such insurer at the time of filing such statement.
(v) A copy of the policy.
Often times policyholders are only given the declarations pages or a shortened version of their full policy. Homeowner clients are routinely shocked to find out that their full policy is 2-3 times larger than what they were given by their insurer after paying their premium.
If a dispute arises, don’t let your insurance company tell you what your policy says or doesn’t say. Demand a copy of your full policy so you can review it yourself or with the assistance of a legal professional.
2. RIGHT TO A COVERAGE LETTER
For a homeowner going through the process of an insurance claim, understanding your insurance company’s coverage decision is important.
If your insurance company found coverage and made a payment, you have the right to know what that payment is and what was paid for. If your insurance company is denying coverage, you have the right to know under what part of the policy are you being denied coverage for.
In Florida, an insurance company could be in violation of the law when “making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made.” (2)
3. RIGHT TO GOOD FAITH CLAIMS HANDLING
An insurance company could potentially face a civil action against them and be exposed to significant financial ramifications by acting in bad faith when settling claims with their insureds.
In Florida, insurance companies may be in violation of the law when “not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.” (3)
Don’t let your insurance company give you the runaround and get away with it.
Keep notes of your discussions with your insurance company, make copies, and maintain originals of all written correspondence and consult with an attorney if you feel like you’ve been wrongly denied or underpaid.
4. RIGHT TO PAYMENT OF UNDISPUTED AMOUNTS WITHIN 90 DAYS OF CLAIM
Florida Statute 626.9541(1)(i)4 says that an insurance company is engaged in “unfair claim settlement practices” by:
Failing to pay undisputed amounts of partial or full benefits owed under first-party property insurance policies within 90 days after an insurer receives notice of a residential property insurance claim, determines the amounts of partial or full benefits, and agrees to coverage, unless payment of the undisputed benefits is prevented by an act of God, prevented by the impossibility of performance, or due to actions by the insured or claimant that constitute fraud, lack of cooperation, or intentional misrepresentation regarding the claim for which benefits are owed.
If your insurance company has found coverage but has delayed your payment unnecessarily, you should consult with an attorney to see what potential remedies exist.
Know your rights.
CPHEN LAW GROUP
REFERENCES:
(2) 624.155(1)(b)(2)
(3) 624.155(1)(b)(1)
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