Last week was a crucial week in the area of homeowner’s property claims and the ever changing laws in this area.
There were two decisions and a key Bill which passed the Florida legislature that you should be aware of when dealing with a homeowner’s insurance company for a loss suffered at your property.
The Third District Court of Appeals released the two opinions:
HB 7065 – the Insurance Assignment Agreements bill is effective July 1, 2019 and is perhaps one of the worst pieces of legislature as it relates to policy holders and their rights pursuant to homeowner’s insurance policies.
Most residential homeowner’s insurance policies require that homeowners mitigate their damages after a loss occurs to their home. In other words, they have to ensure that the damage to their home does not get worse. Common damages in Florida to homes are related to water damage. In effect, this means that when your home is damaged by water, you, the homeowner, have a responsibility to remove the water, dry the property as best as you can, and ensure the water doesn’t spread and cause mold growth.
Emergency water mitigation service companies (“EMS companies”) do just this. EMS companies respond immediately, they go to properties which are damaged by water with large industrial driers, water meters, and other equipment to ensure the property is dry.
As a service to homeowner’s who are in a tough financial spot and waiting on their homeowner’s insurance company to pay for the loss, EMS companies ask that homeowner’s sign an Assignment of Benefits (“AOB”) allowing the EMS company to bill the homeowner’s insurance company directly for the EMS services.
This new Bill is attempting to do away with this practice. It caps the EMS companies at an unreasonably low number to complete their services. It requires that AOBs jump through additional hoops to get paid by the insurance companies at all. And, it makes it near impossible for AOBs to hire an attorney to sue the insurance companies for non-payment, unless the AOB companies pay out of pocket, which would not be cost effective for the low capped pricing.
It will now become common that homeowners will have to pay out of pocket for mitigation services, prior to the insurance company even coming to evaluate the claim, let alone determine coverage. So the homeowner’s insurance that you pay for, as a requirement of holding a mortgage on your property, will cover less of the mitigation efforts you’re required to make and less of actual damages to your home.
If you suffer a water loss at your home, and need assistance, please do not hesitate to contact us for a consultation at (561) 279-6771 or by email at info@rinafeldpa.com.