A homeowners’ insurance policy is a two-way street, requiring both the homeowners and the insurance company
to uphold their end of the bargain. The homeowners pay premiums every month, recognizing that if an unforeseen
loss occurs, their insurance company will provide the needed indemnity to restore their property to its pre-loss
condition.
Unfortunately, many Floridians with storm-related damage receive letters from their insurance companies denying
part or all of their insurance claim. Faced with the prospect of paying for the needed repairs out of pocket, many
homeowners ask themselves: am I really going to have to sue my insurance company to get this claim paid?
In many instances, the answer is yes. Getting an insurance company to behave appropriately often requires
initiating a lawsuit. However, alternative methods of dispute resolution are available. Speaking with an attorney
from Cohen Law Group is the best first step to understanding what choice is right for you.
One alternative method of dispute resolution available through many insurance policies is appraisal. Appraisal
involves both parties selecting a competent and experienced “appraiser” to evaluate the property damage and
make a recommendation as to the proper scope (and dollar amount) of insurance coverage. A neutral umpire is
appointed by the appraisers if the parties are unable to reach an agreement.
Depending on your situation, however, your attorney may advise against appraisal because the determinations of
the parties are final and because homeowners sacrifice some of the leverage that they would otherwise have in a
lawsuit. Some insurance policies require both parties to agree to appraisal. Your attorney at Cohen Law Group can
help you understand your options.
Another alternative to a lawsuit is Florida’s state-sponsored mediation program. Florida provides a mediation
program through the Department of Financial Services aimed at resolving insurance disputes. Per the DFS website,
“[i]f your insurance company maintains a position regarding your claim which you find unsatisfactory, mediation
will allow you to sit down face-to-face with the company and a neutral third-party mediator licensed by the
Department of Financial Services (DFS) to try and resolve your differences.”
While the mediation program is a great idea, many homeowners find the speed of the state-administered program
to be more of a burden than a benefit. Because the mediation program is non-binding, it is unfortunately often
used as a tool for insurance companies to slow the claims resolution process.
While appraisal and mediation may be right for some homeowners, many Floridians have found that simply
complying with Florida’s statutory pre-suit requirements can get a claim paid. Florida law requires that a
homeowner seeking to bring litigation against their insurance company for an unpaid claim must first provide the
carrier with a pre-suit notice of their intent to sue. The insurance carrier then has 14 days to provide its response.
Make no mistake: insurance companies don’t like to be sued, and a homeowner’s formal notice that a lawsuit is
right around the corner can be the spark needed to settle the claim.
The attorneys at Cohen Law Group can help you understand which choice is best for you. Our office is open
Mondays through Thursdays 8:30 am to 5:30 pm EST, closing at 4:30 pm EST on Fridays. Or call us 24/7 at (407)
478-4878.
CHRIS DINDA, ESQ.
