Florida’s Second District Court of Appeal affirmed dismissal of a lawsuit brought by a roofing contractor against an insurance carrier on behalf of an insured, finding that the assignment of benefits contract between the contractor and insured did not strictly comply with the requirements of section 627.7152, Florida Statutes.
Read moreFlorida Court Confirms Estimate Attached to Assignment of Benefits Must be Job Specific
A recent Third District Court of Appeal decision reiterates the level of detail required in a written, itemized, per-unit cost estimate that must be provided when using an assignment of benefits. While the use of assignments of benefits for disaster recovery work has essentially been eliminated for future policies, there are still many claims out there arising under previously issued policies and many assignments of benefits still in place.
Read moreNew Decision Shows Risks of Performing Disaster Recovery Work Under a Builder's Risk Policy
The court granted summary judgment and declined to find coverage under the specific terms of a builders’ risk policy for vandalism and water damage to a building where the policy was in effect, but work had not begun.
Read more3 Changes Contractors Working in Florida Need to be Aware of for 2023
2023 is poised to be a year full of changes for contractors working in Florida, regardless of the type of work you are performing. There are important changes to laws affecting contracting and licensing that take effect in 2023 or complete implementation in 2023. Here are the three most critical changes contractors should be aware of and what they can do to prepare for them.
Read moreAn Update on Assignments of Benefits for Florida Contractors
While assignment of benefit agreements are quickly being phased out for insurance payments on construction projects, it’s important for contractors who plan to continue to use them while they can to know how courts have been applying Florida’s assignment of benefits statute and what contractors need to do to be compliant with those decisions.
Read moreWhat Florida's New Insurance Statute (SB-2A) Means for Contractors
Earlier today, Florida’s legislators approved Senate Bill 2A and sent it to Governor Desantis for signature. The statute makes dramatic changes to Florida’s property insurance statutes, and, for contractors, signals the end of an era and a need for immediate changes in how those that perform work where insurance proceeds are involved run their business.
Read moreFlorida Court Finds That Price List Attached to Contract Does Not Satisfy "Written Estimate" Requirements of AOB Law
Last week Florida’s Fourth District Court of Appeal affirmed the dismissal of a lawsuit filed by a mold remediation contractor, finding that the standard price list attached to the contract failed to meet the requirements for a “written, itemized, per-unit cost estimate of the services to be performed” required under Florida’s assignment of benefits statute. The decision is another cautionary tale to contractors in the disaster recovery business about risks of non-compliance with the statute.
Read moreFlorida Court Affirms Dismissal of Company's Lawsuit For Failing to Comply with Assignment of Benefits Statute Despite Contract Language Disclaiming Application of Statute.
Recently Florida’s Second District Court of Appeal concluded that an assignment of benefits agreement executed in conjunction with indoor environmental and air quality testing services fit within Florida’s Assignment of Benefits Statute despite the services not directly involving physical protection, repairs, or restoration. This resulted in a dismissal of the air quality companies lawsuit against the the insurance carrier, and illustrates how broadly courts are interpreting 627.7152, Florida Statutes, and how careful restoration companies and their affiliates must be in complying with its terms.
Read moreCourt Dismisses Restoration Company's Lawsuit based on Florida's New Assignment of Benefits Statute
Recently, a restoration contractor in Broward County, Florida had its lawsuit dismissed for failure to include an itemized statement, required to be attached to its assignment of benefits under Florida’s new assignment of benefits statute found in 627.7152, Florida Statutes.
Read moreCourts Hold that Disaster Recovery Contractor's Assignment of Benefits is not Unconstitutional
Many construction companies, especially those involved in disaster recovery or mitigation use assignments of benefits (AOB) to ensure payment by the homeowner’s insurance company. While there are many court decisions interpreting AOBs, and a new AOB statute to evaluate, two recent court decisions recognize that AOBs do not violate certain provisions of the Florida Constitution.
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