Facts & Myths
THE FOLLOWING HURRICANES RECENTLY BATTERED THE STATE OF FLORIDA:
Charlie-August 13, 2004; Frances-September 4, 2004; Ivan-September 16, 2004; Jeanne-September 26, 2004; Katrina-August 25, 2005; and Wilma-October 24, 2005.
Typically you have five (5) years to make a claim with your insurance company after a casualty loss so your potential claim for damage sustained as a result of Katrina or Wilma is STILL RIPE unless your claim was cut short by a FIGA deadline, an appraisal award or a release agreement you signed which specifically used the word “release.”
In order to understand whether or not your association walked away from insurance proceeds that were rightfully owed to you it is important to understand how many insurance companies operate.
It does not benefit the insurance company’s bottom line to make you whole for any claim you may submit in that they are confident that you will accept less money than you deserve or they are hoping that you will simply forget that you still have rights to assert a substantial claim for money that you may be owed. It is even better for them if you do not submit a claim at all.
THE FOLLOWING ARE SOME COMMON MISCONCEPTIONS REGARDING THE FILING OF A FIRST PARTY INSURANCE CLAIM;
1. If you file a claim you will be dropped. This is false.
It is illegal under Florida law for insurance companies to drop policyholders for filing claims. Specifically, Section 627.4133(3) provides: “Claims on property insurance policies that are a result of an act of God may not be used as a cause for cancellation or nonrenewal.”
The reality is that if you do not file a claim and the neighboring property files a dozen you both have the same chance of being dropped if your insurance company decides to reduce its exposure in the State. The neighboring property owner, however, at least had the benefit of filing a claim;
2. If you file a claim your insurance rates will go up. This is false.
Again, this is the same issue as #1. Insurance companies must submit rate increases to the State for approval. Whether or not you make a claim will not impact the carrier’s business decision to move forward with a proposed rate increase;
3. Your damage did not come close to exceeding your deductible.
This is a common position taken by an insurer to ensure that policyholders simply give up and pay for insured damage out of their own pockets. Damage visible to the naked eye does not tell the whole story of damage which your personal and real property may have suffered. Trained experts can properly advise you on the full extent of the damage inflicted including structural damage, mold, loss of power, relocation expenses, cleanup and dumpster costs, etc. If your community endured a special assessment to pay for storm damage you may have been on the receiving end of the deductible excuse; and
4. If you already received a check from your insurance company it is too late to revisit your claim.
Unless you signed a release, receiving funds alone does not prevent you from pursuing your carrier for the full extent of damage you suffered.