Big Win for Home Owners!
The Fifth D.C.A. has reaffirmed the homeowner’s right to assign post loss benefits. This ruling is great news for Florida homeowners because it reaffirms the right to assign post loss benefits under a claim in exchange for emergency services.
This means that if someone sustains a loss to their home that requires immediate mitigation services or repairs, the homeowner does not have to pay for the services out of pocket. Instead, they can assign their rights to payment for these services from their insurance company directly to the contractor and the work can begin immediately.
Moreover this ruling reaffirmed an assignee’s common law right to bring suit to recover on a breach of contract when an insurer fails to cover all costs incurred by the insured. This right to recover predates the Florida Constitution. This ruling by the Fifth District Court of Appeals is truly a win for homeowners’ rights in Florida.
In the case of Accident Cleaners, Inc. a/a/o Joseph Gerena v. Universal Ins. Co., the insured, Mr. Gerena, assigned his rights and benefits under his insurance claim to Accident Cleaners in exchange for their emergency cleanup services at his home. Accident Cleaners performed the services and submitted their invoice and assignment of insurance benefits to Universal for the services performed by Accident Cleaners.
When Universal failed to pay the full amount of the invoice, Accident Cleaners filed a lawsuit. The trial court dismissed the lawsuit because Universal claimed that in order for the assignment of benefits to be valid Accident Cleaners had to have an insurable interest in the property pursuant to Florida statute 627.405.
The Fifth D.C.A. explained that there was nothing in the language of this statute which prohibited an assignment of insurance benefits of a post loss claim. The Court also stated that it is well-settled Florida law that an insured may freely assign their rights and benefits to a claim even without the consent of the insurance company and that this right predates the Florida Constitution.
For more information on this ruling, click here.
Ana Cristina Rossi, Esq.
Learn more about Ana Cristina here!
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