HOME AND CONDOMINIUM ASSOCIATIONS

Because of the very nature of the intricate wording of the insurance contract and the companies’ awareness that they are essentially holding the “purse strings” to payment of claims, we have repeatedly demonstrated that insurance companies are systematically taking advantage of Associations.  Indeed, these insurance companies unfairly use this leverage and knowledge that the insurance broker rarely explains the contract to representatives of the Associations to delay payment of claims and in many cases, to avoid payment of claims.  We thought it would be helpful to clear up some myths that insurance companies apparently want people to believe.
 
1. If you cash a check from your insurance company, you cannot get any more money.

THIS IS FALSE.  This is not true but your insurance company wants you to believe it is.  As long as you did not sign a release, skilled attorneys focusing their practice in Natural Disaster Law will likely be able to get more money for the Association.  There are a number of laws that provide severe penalties for fraudulently suggesting to you that your rights to full compensation are somehow eliminated because you already receive a check for a portion of the loss.
 
2. Your insurance company will drop you if you file a claim.

THIS IS FALSE.  It is illegal under Florida Law for insurance companies to drop you or otherwise refuse to further insure because you made a hurricane (or other) property claim.  In fact, an insurance company can lose its entire license to offer insurance or suffer serious sanctions if it wrongfully refuses to pay claims.  While the statutes governing insurance companies and agents are very technical and complicated, we can illustrate a number of specific rights that you possess, and explain the common violations and your best remedies to respond to such wrongful conduct.  

3. If you file a claim your insurance rates will go up.

THIS IS FALSE. Whether you file a claim or not, your rates will go up.  Florida regulators allow insurance companies to increase their rates on many of their policies depending upon a number of factors that might not be fair to you.  For example, Allstate Floridian recently received approval for 24.4% rate increase for everyone.  Hurricanes, like earthquakes, are Natural Disasters and obviously occur based on climate conditions, and not in relation to what a particular property owner might do on their property.  It cannot be reasonably disputed, however, that insurance companies are in business to make money, and if they can utilize natural disasters to raise premiums, they are likely to continue in their efforts.  We can explain the rights you do have and the steps to take to maximize your insurance protection.
 
 
4. If you hire an attorney, the insurance company will be mad and not pay the claim.

THIS IS FALSE.  Insurance companies are betting that you won’t hire the right experts to enforce the policy (a formal contract).  Attorneys that have significant trial experience and expertise in insurance-related claims almost always move the case closer to a better resolution, whether that is at trial or through a more profitable settlement for you.  Perhaps more importantly, there are certain firms, such as the Garfinkel Trial Group, that create such a strong first impression with a litany of filings, complaints to the state and other demands that usually and sufficiently intimidates the insurance company and levels the playing field - which actually has the effect of encouraging the insurance company to honor their promises and pay your losses.  The best attorneys know how much is really needed to motivate an insurance company to pay.

5.  Claims by the insurance company that the damage does not exceed the deductible.

THIS IS OFTEN FALSE.  This is a frequent claim that insurance companies tell so the insured gives up and pays out of pocket for repairs that should be paid for by insurance.  The insurance company may not be informing you that there may be opportunities to waive deductibles, or misapplication of deductibles or wrong categorization of losses as being subject to a deductible.  Be careful and wary when you get that sort of response.

Natural disaster law is complicated. Insurance contract interpretation is difficult. Instead of trusting your claim to a public adjuster, who are usually uninsured and don’t have a law degree, it’s best to talk to an attorney who specializes in insurance contract law to make sure you understand your rights.
 
6. The Broker/Agent who sold you the insurance policy claims that they are unable to help you with processing your claim with the insurance company.

THIS IS FALSE.  One of the more frustrating things that typical Associations feel in the early stages of processing a claim is the silly response by the insurance broker who sold you the insurance that “he can’t help you” or that “you should call the insurance company” or that he “doesn’t work for the insurance company and therefore cannot help you.”  You should remember that the insurance broker was paid a hefty commission to get you the insurance, and is paid to get you the right insurance that will service your needs and to insure that it services those needs.  The insurance broker/agent is required by law to perform these tasks, and equally significant, you should not work with any broker that cowardly refuse to take strong positions and specifically help you at all stages of the claim.  We have some specific strategies for you to undertake in selecting a broker or in utilizing your existing broker that will definitely help you immensely in any present or future claim.

 
The following areas are of specific concern when dealing with your insurance company:

• Multiple Deductibles: Some insurance companies are applying multiple deductibles for a single claim, despite that they are aware that the law does not allow them to apply the deductibles in that way, in the absence of specific evidence that the house was damaged by multiple disasters (such as multiple storms).  Depending upon the specific policy language, and the severity of damage and how it occurred, you may impact multiple policies or deductibles, but it is rarely the case that multiple deductibles will be permitted.
  

• Scare Tactic of Policy Cancellation:  The policy cannot be cancelled by virtue of presenting a claim or retaining a lawyer.  In fact, there are very severe punishments delivered to insurance companies who engage in that wrongful conduct, ranging from serious fines to loss of their license and right to even sell insurance in the state.
  

• Use of a Specific “Estimating” Program to Minimize the Amount of Money Paid:  Insurance companies have found a way to try to minimize their payment of losses by utilizing a software program that is supposed to estimate the value the cost of fixing property damage.  They utilize this program - which is called “Exactimate” - rarely provides a fair assessment of the adequate amounts of money sufficient to complete all repairs needed.  You are entitled to have the damage restored based on the prevailing market rate of materials and labor, not based on some artificially low estimate prepared by the insurance company.
  

• Loss of Power:  If you lost power, you’re entitled to compensation for the loss of food in your refrigerator, as well as the cost of an electrician to survey the wiring in the house.
  

• Asbestos:  Any structure built prior to 1978 will most likely have asbestos in the plaster, acoustic/popcorn ceiling, air ducts and so forth.  If there is damage to the inside walls, the insurance company has a duty to test for asbestos and compensate you for the “abatement” (removal) of the asbestos. On an average claim, this issue costs the insurance company several thousand dollars.
  

• Mold:  Once there is mold, a claim should be presented for the remediation of the mold and repair of the affected areas.  In addition, as is common and very important in any claim relating to mold, you should have sufficient funds to clean or replace all of the contents in the house (and in some cases, replaced is the best option for you) for all soft goods such as clothing, linens, etc.
  

• Painting:  As you probably know, painting involves more than just paint.  In order to properly paint the inside or outside of a structure, the painting company must properly prepare the structure and its contents through such things as moving furniture, detaching and resetting light fixtures, window coverings, electrical outlets, etc.  You are entitled to be compensated for such costs.