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 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 moreNew Statute Will Dramatically Impact Roofing Contractors and Contractors That Receive Insurance Proceeds
The new statute, Florida Senate Bill 76, was passed by the Florida legislature in its most recent session and is expected to be signed into law by Governor Desantis, with an effective date of July 1, 2021. The statute adds new requirements and contract disclosures for roofing contractors and greatly limits the way all contractors who work with homeowner insurance companies can market themselves and obtain work.
Read morePublic Adjusters who Receive a Portion of an Insured's Appraisal Award Cannot Serve as an Appraiser for that Award
In a decision released earlier this week, the Second District Court of Appeal held that a public adjuster who has an interest in a percentage of an insured’s appraisal award or represents an insured in the appraisal process cannot also serve as a “disinterested appraiser” under the policy’s appraisal provision.
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 moreCourt Confirms That Disaster Recovery Contractor is Required to Litigate Case in County Six Hours Away
A recent decision by Florida’s First District Court of Appeal reaffirms that contractors can be made to litigate disputes in the county where the work was being performed, even if they do not generally have representatives in that county or have a principle location somewhere else.
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.
Read more