Florida Property Damage Insurance Coverage
In Florida, insurance has become a major factor when considering purchase of a home. Premiums have skyrocketed and major insurance companies are dropping current policy holders. When claims are made against the insurance policies, the insurance companies are doing their best to limit payouts to policy holders.
Types of insurance coverage
Property insurance in Florida usually consists of either Replacement Cost Coverage or Extend Value Coverage. Replacement cost coverage pays the cost of replacing your property regardless of depreciation or appreciation. Premiums for this type of coverage are based on replacement cost values, and not based on actual cash value. Actual cash value coverage provides for replacement cost minus depreciation. Extended replacement cost will pay over the coverage limit if the costs for construction have increased. This generally will not exceed 25% of the limit. When you obtain an insurance policy, the coverage limit established is the maximum amount the insurance company will pay out in case of loss of property. In case of a fire, household content replacement is tabulated as a percentage of the value of the home. In case of high value items, the insurance company may ask to specifically cover these items separate from the other household contents.
In both cases when there is a partial loss, like in the case of partial roof replacement, settlement is governed by Florida Statute:
626.9744. Claim settlement practices relating to property insurance
Unless otherwise provided by the policy, when a homeowner's insurance policy provides for the adjustment and settlement of first-party losses based on repair or replacement cost, the following requirements apply:
(1) When a loss requires repair or replacement of an item or part, any physical damage incurred in making such repair or replacement which is covered and not otherwise excluded by the policy shall be included in the loss to the extent of any applicable limits. The insured may not be required to pay for betterment required by ordinance or code except for the applicable deductible, unless specifically excluded or limited by the policy.
(2) When a loss requires replacement of items and the replaced items do not match in quality, color, or size, the insurer shall make reasonable repairs or replacement of items in adjoining areas. In determining the extent of the repairs or replacement of items in adjoining areas, the insurer may consider the cost of repairing or replacing the undamaged portions of the property, the degree of uniformity that can be achieved without such cost, the remaining useful life of the undamaged portion, and other relevant factors.
(3) This section shall not be construed to make the insurer a warrantor of the repairs made pursuant to this section.
(4) Nothing in this section shall be construed to authorize or preclude enforcement of policy provisions relating to settlement disputes."
For Florida policyholders, if the policy calls for replacement cost and the loss occurred after October 1, 2005, it is important to know that Fla. Stat. § 627.7011 prevents an insurer from attempting to depreciate the undamaged portion of the structure that needs to be replaced due to matching:
"(3) In the event of a loss for which a dwelling or personal property is insured on the basis of replacement costs, the insurer shall pay the replacement cost without reservation or holdback of any depreciation in value, whether or not the insured replaces or repairs the dwelling or property."
One Call has served the South Florida area since 2005. We believe our fast, friendly service has allowed us to thrive in the residential, commercial and light industrial property damage remediation markets. Please contact us if you have any questions. Call us (772 223-8400 ) if you are interested in receiving a free quote from us on your remediation, reconstruction, or restoration needs.
Whether you are a Treasure Coast area property manager, commercial general contractor, or home owner, One Call will provide quality work, timely service, and reasonable pricing. We pride ourselves on the high standards we have established and maintained as a Treasure Coast area contractor. We will gladly provide references if you are considering us for your next damage restoration project.