When Is An Insurer Required To Pay For Reasonable Emergency Measures?
When a home sustains water damage, the property owners understandably want to take immediate action to mitigate the problem. But sometimes this means they do not take the time to read–or follow–the terms of their homeowner’s insurance policy. Many insurance contracts require advance notice or approval before undertaking even emergency repairs to a property. Such provisions help protect insurers against fraudulent or exaggerated damage claims. Florida Appeals Court Rejects Home Contractor’s “Gotcha” Tactics Against Insurer A recent decision from the Florida Fourth District Court of Appeals, Restoration v. Citizens Property Insurance Corporation, provides a case in point. A condominium unit in Palm Beach County sustained some water damage. The homeowners hired a restoration company to provide water removal and remediation services. Under the terms of the homeowner’s insurance policy, coverage for “reasonable emergency measures taken solely to protect covered property from further damage” was limited to $3,000 or 1 percent of the policy’s liability limits. The owners could ask to exceed the limit of the cap by asking for approval, which the insurer was required to grant or deny within 48 hours of receiving such a request. If the insurer did not answer the request within the 48-hour period, the homeowner was entitled to reimbursement for the full amount of any reasonable emergency measures. In this case, the property owners assigned their insurance benefits to the restoration company. The company proceeded to remove damaged drywall from the property, as well as the wet, moldy portions of the affected walls. The restoration company then filed a claim with the insurance company, which was for an amount greater than $3,000. The insurer held its ground, stating it was only required to pay up to the $3,000 cap for reasonable emergency measures. The restoration company then filed a lawsuit in Palm Beach County Circuit Court, alleging that the insurer had not responded to its claim within 48 hours and thus was on the hook for the full amount of its invoice. Essentially, the company argued that by receiving an assignment of benefits from the homeowner, that functioned as an “official request to exceed the $3,000 cap.” The courts did not see it that way. The Fourth District, upholding a prior ruling from the Circuit Court, said the restoration company essentially engaged in a “gotcha” tactic. It sent an email to the insurance company that contained the assignment of benefits from the homeowner. What it did not contain was an explicit request to exceed the $3,000 cap. But by sending the email, the restoration company hoped to start the 48-hour clock. The Fourth District said it would “not permit such tactics.” Speak with a Tampa Mold and Water Damage Attorney Today Insurance policies are carefully drafted to ensure there is no ambiguity as to the obligations by all parties. And while an insurance company is required to pay any valid claims, that does not mean insured parties are relieved of their own duties to follow the terms of the policy when filing a claim. If you are an insurer involved in litigation over an improper mold or water damage claim and need representation from a qualified Tampa mold & water damage lawyer, contact HD Law Partners today. Source: https://scholar.google.com/scholar_case?case=813-253-5333986093115 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