Several years ago, we started seeing property insurance policies with new very restrictive language that attempted to exclude water losses based on the subjective opinion of some as to when the water loss occurred and caused damages. It was my opinion that this 14 day limitation would be very bad for folks in Florida, as well as snowbirds who own property and only reside here six or so months a year.

Florida’s condominium community, it’s heads up time up for this year’s hurricane season and the escalating threat as we approach the most active time for tropical storm development. A few new releases from some of the weather pundits raised the possibility of more tropical storms this year. This is the second time this year the threat level has been raised for an increase in tropical storms in 2017. One respected weather guru who publishes a daily blog is sharing his concerns about all the weather waves moving off of Africa. So as they say, game on! 

The following is an insurance claim question we answered for a policyholder through the United Policyholders Ask an Expert Forum.

Q. We had a dishwasher leak into my cabinets and on my engineered hardwood floors. A claim was filed. Independent adjuster came out. When I got my estimates done they came out higher. Insurance already sent a check to us for 45kand repairs are at 65k. Now they want to send out a staff adjuster. My question is can they take money back if their staff adjuster doesn't come out with the same figures when they've already sent payment and notice? We did well on our first adjustment but I am worried that the second adjuster might not be as much in my favor.

There were a number of articles over the course of the last few weeks that focused my attention back to the water peril.  Spring storms in the middle section of the country with the severe floods that always seem to follow; global warming issues being reported almost daily with the threat of rising sea levels; and then this recent article, Flood recovery meeting set in White Sulphur Springs  from The Herald-Dispatch in West Virginia, that announced meetings with various officials to try and provide updates to the folks in southern West Virginia who were affected by last year’s floods in the mountain state. 

Ken and Joan spent their working lives in public service, Ken as an educator, and Joan as a nurse. It was their dream to have a vacation home in a warm climate so they purchased a condominium in Bonita Springs, Florida. A contractor error caused a pipe break in a unit above theirs and entirely flooded their home with hundreds of gallons of water. They were notified and drove down to Florida to inspect the damage and meet with their insurance company. That’s when the insurance claim problems began.

Some months back I received a call from a physician who was referred to me by an engineering firm we had worked with on a large project in Longboat Key, Florida that resulted in a multi-million dollar settlement. Not only was the client pleased with our work, but their engineer apparently was equally impressed given the kind words he shared with this physician about our work and the results we were able to achieve with previous claim. During my initial discussion with the physician on the phone, I told him it was unlikely we could prevail on his insurance claim based on the damages he described to me. The insurance industry had changed most policies to take away coverage that was previously available for what sounded to me like a collapse claim.  

In case you missed it, The Wall Street Journal published March 15, 2017 had an article in the editorial section titled “Florida’s Trial Bar Hurricane.” I think most folks who are regular readers of WSJ would agree that the publication is no friend of plaintiff lawyers, so at least we know they are prejudiced to some extent and thus know where they are coming from. But in this case, I see no prejudice but instead good reporting. They make some excellent points, which seemingly are backed up by facts and figures even if they are from the carrier’s side. In my opinion this editorial piece is a good analysis of Florida’s current AOB problem, which is currently being debated in the 2017 Florida Legislative session.

“Well, I’ll be damned!”

These were the first words that came out of my mouth when I read an article reporting on a speech that Chief Financial Officer Jeff Atwater gave at a recent insurance conference attended by Florida property insurance executives. Then another “I’ll be damned” came out when I read an internet posting of efforts being made by the Florida’s new Insurance Commissioner to crack down on Assignment of Benefits a.k.a. AOB abuse and new legislation being prepared for this year’s legislative session which convenes in March.
 
But first some background on what prompted my shock and awe.  

The following is an insurance claim question we answered for a policyholder through the United Policyholders Ask an Expert Forum

Q. I live in Florida and have had an extensive water damage/mold claim that I hired a public adjuster to handle. The insurance company invoked appraisal and the out-of-state umpire determined that mold was accountable for $15,000 of damage although our mold remediation bill totaled $9,500 (we have a mold cap of $10,000 per claim). Secondly, the bathroom tile floor was damaged during remediation and was included as part of the umpire's award. However, the insurance company is refusing to pay the $4,300 floor tile repair portion of the award stating that I must abrogate against the mold remediation company to recoup that loss. Third, my public adjuster is holding the check issued by the insurance company hostage, insisting that I pay his fee prior to endorsing it over to the mortgage company. Please help!.....click to see answer.

Anticipating the 100 year flood event that occurred in my native southern West Virginia was the last thing on my mind when I wrote and published my recent blog Troubled Waters – Insurance Claims Under Attack, about the “Troubled Water Claims” phenomena we are currently experiencing in Florida. But given the fact that Florida’s water problems and West Virginia’s terrible flooding disaster have one common denominator - water, I thought it would be helpful and hopefully educational to distinguish a flood event versus a water loss since these terms are often misused in the property insurance world. In addition, for those who do have flood insurance, we want to share some knowledge and information in the form of tips from my firm’s extensive experience in water/flood losses including our most recent work handling Super Storm Sandy flood claims in New York.