Florida is growing at a rapid rate; this is not news to most Floridians. As a result, Insurance Brokers are
often selling policies at such a pace that they can rarely keep up with business. Unfortunately, that
leaves homeowners in a position where they potentially don’t understand what is in their own policies.
Many, if not most, policies being written in Florida now contain language limiting liability in some form
for water damage or overflow. These are often known as “Water Damage Endorsements.” Novel and
daunting, these endorsements are specifically designed to kneecap your ability to recover for a loss.
Carriers, frustrated with being held accountable for water damage claims in Florida, developed and
expanded these Water Damage Endorsements limiting liability at a certain figure (often $10,000.00).
This means that a pipe burst, a leaking toilet, or a hairline crack in a line under the foundation would
now potentially have recovery limited at $10,000.00 even though repairs from such claims would far
exceed that value.
What does that mean for Policyholders? When you file a water claim potentially subject to these
endorsements, the carrier will go through all the motions of a typical claim investigation. The Field
Adjusters will investigate, maybe even leak detectors or experts will be retained. Coverage may be
denied altogether. If coverage is opened though, the maximum they will likely pay will be the amount of
the limit included in the endorsement.
What can Policyholders do? Be mindful when purchasing or renewing a policy. Ask your broker about
options available to you. Often these Endorsements will change shape and form – frequently, growing
longer and longer as the years go by. A decade ago, these endorsements were uncommon. Five years
ago, when they were included in policies, they may have been relatively direct and brief. Now it is
common to see endorsements over a page long, replete with caveats and exemptions for carriers to
dodge coverage in any way possible and trying to preempt challenges. Be wary when renewing or
purchasing your policy and reach out to a professional to be certain and understand what these may
mean for you and your potential claim.
Michael Melli, ESQ.
