A Homeowners’ Policy Is Not Like Auto Insurance
If you own your own home and a car, you likely have insurance on both. There is a critical difference between the two types of insurance. Florida law requires drivers to carry a minimum amount of auto insurance known as personal injury protection (PIP) coverage. As far as your home goes, however, state law imposes no similar requirement. If you have a mortgage, the lender will usually require homeowners’ insurance to protect their interests. The State of Florida won’t punish the homeowner if the owner decides not to insure the house. Contractor Battles Insurer Over Water Damage Repairs Since homeowners’ insurance is not mandatory, it is purely a matter of contract between the policyholder and the insurer. As such, legal concepts that may apply to homeowners’ policies may not apply to auto insurance, and vice versa. This came up in a recent decision from the Florida Fourth District Court of Appeals, People’s Trust Insurance Company v. Restoration Genie Inc., which involved the interpretation of a homeowners’ policy. This particular case involved a claim for water damage. The homeowner experienced a leak and sought coverage. The policy had what is known as a “preferred contractor” clause. Basically, the insurer gave the homeowner a $75 annual credit against his premiums, and in exchange he agreed that the insurer could use its own “rapid response team” (RRT) as its preferred contractor to make repairs. In this case, however, the homeowner decided to use his own contractor to repair the water damage. Under the policy, if the homeowner failed to notify the insurer of a loss and let its RRT team perform the work, then the insurer’s coverage obligation was limited to either the “reasonable cost incurred for mitigation” or the amount the insurer would have paid the RRT to perform the emergency repairs, whichever was less. The homeowner assigned his coverage rights to his contractor. The contractor, in turn, billed the insurer $5,327.10 for the repairs. The insurer said it would only pay $2,000, as it did not receive prior notice and that was the limit it would have paid its own RRT for the work. The contractor subsequently sued the insurer for the difference. A Florida circuit court judge granted summary judgment to the contractor. But the Fourth District reversed, holding there were still disputed factual issues requiring trial. The appellate court specifically rejected the contractor’s argument that the insurance company’s service agreement with its RRT, which limited payments to $2,000 in these cases, effectively amended the homeowner’s insurance policy and created a new coverage limit. Under Florida law, insurers typically need to provide notice in cases involving auto insurance when attempting to limit reimbursements for covered expenses. But as the Fourth District explained, this was not an auto insurance case. Homeowner’s coverage is not mandated by state law and, as such, is not subject to the same restrictions as PIP coverage. So the contractor in this case could not rely on case law related to auto coverage to prevail in its claim. Speak with Our Team at HD Law Partners Today Insurance companies often must litigate to enforce their clearly stated rights under a given policy. If you are involved in a disputed mold and water damage claim and need legal representation from a qualified Tampa insurance attorney, contact HD Law Partners today to schedule a consultation. Source: scholar.google.com/scholar_case?case=813-253-5333958168745 Posted in Mold Water Damage | No Comments » Connect with us Archives May 2026 April 2026 March 2026 February 2026 January 2026 December 2025 November 2025 October 2025 September 2025 July 2025 June 2025 January 2025 January 2024 December 2023 November 2023 October 2023 September 2023 August 2023 July 2023 June 2023 May 2023 April 2023 March 2023 February 2023 January 2023 December 2022 November 2022 October 2022 September 2022 August 2022 July 2022 May 2022 April 2022 March 2022 November 2021 October 2021 September 2021 August 2021 July 2021 May 2021 April 2021 March 2021 February 2021 January 2021 December 2020 November 2020 October 2020 August 2020 July 2020 June 2020 May 2020 April 2020 March 2020 February 2020 January 2020 December 2019 November 2019 October 2019 September 2019 August 2019 July 2019 June 2019 May 2019 April 2019 March 2019 February 2019 January 2019 December 2018 November 2018 October 2018 September 2018 August 2018 July 2018 June 2018 May 2018 April 2018 March 2018 February 2018 January 2018 December 2017 November 2017 October 2017 September 2017 August 2017 July 2017 June 2017 May 2017 April 2017 March 2017 February 2017 January 2017 December 2016 November 2016 October 2016 November 13 Categories Alimony Appellate Arbitration Auto Accidents Auto Insurance Business Corporate Business Insurance Law Child Custody Child Support Criminal Law Divorce Family Law FEMA Insurance Payments Florida’s Mandatory 2‑Hour Legal Professionalism CLE: Foreclosure Defense Fort Myers Hurricane Insurance Attorney General Guardianship HD Law Partners Service HOA/Property Management Homeowners Association Homeowners Insurance Hurricane Claims Hurricane Insurance Insurance Bad Faith Insurance Claims Insurance Defense Insurance Litigation Landlord Tenant Law Enforcement Liability Loan Modifications Mold Water Damage Parental Rights Paternity Personal Injury Premises Liability Law Prenuptial Agreements Private Security Property Distribution Property Owner Law Sarasota Insurance Litigation Attorney Slip Fall Tampa Business and Corporate Attorneys tampa family attorney Tampa Insurance Attorneys Timeshare Timesharing Uncategorized HD Law Partners is proud to be your trusted full-service law firm Quick Links Property & Casualty Business & Corporate Litigation Family Law Contact Us Careers Get In Touch 2002 North Lois Avenue Suite 510 Tampa, FL 33607 813-253-5333 Contact Us