Florida Homeowner's Insurance Claim Guide
Florida is no stranger to natural disasters, as Hurricane Ian has made painfully clear. It should come as no surprise that Florida has enacted a large body of laws that affect the rights and responsibilities of Floridians who need to file a claim on their homeowner's policy. We've created this guide to help Floridians understand those laws.
November 3, 2022
Key Takeaway
The sooner you file your proof of loss, the sooner your insurance company has to respond to your claim.
Key Takeaway
You have a right to receive a copy of your insurance company's adjuster's estimate
Key Takeaway
The state has issued special emergency orders that benefit homeowners
Table of Contents
What is an Assignment of Benefits?
How Does an Assignment of Benefits Work in Practice?
Are There any Downsides to Signing an Assignment of Benefits?
Do I have to sign an Assignment of Benefits?
Are There any Benefits to Signing an Assignment of Benefits?
Can my insurance policy restrict the use of AOBs?
Data
Do I have any rights or protections concerning Assignments of Benefits?
Your Deadlines as a Homeowner
Notifying Your Insurer of a Potential Claim: As Soon as Possible
You should notify your insurer of losses that could result in a claim at your first opportunity. Technically, you have two years from the date of the loss or damage under Florida law to file your claim, Fla. Stat. § 627.70132, but it’s in your best interest to notify you insurer of a loss as soon as possible. Among other things, this notification starts the clock on important insurer deadlines (as described below), so it puts the ball in the insurer’s court to begin processing your claim.
Not sure how to contact your insurer? Claimly can help! Check out the state of Florida’s official listing of Florida insurers and their contact information.
Submitting a Proof of Loss: Determined by Your Insurance Policy (but you should still do it as soon as possible)
Although Florida law does not dictate a specific time period to file a proof of loss, most insurance policies require you do so within a specified period (often 60 days) from when your insurance company requests you to submit the proof of loss. So the key here is to find the deadline in your insurance policy and follow it. Failing to file a proof of loss within the deadline set by your insurance policy risks you forfeiting your insurance claim.
Even if there weren't mandatory deadlines, it's in your interest to submit a proof of loss as soon as possible. In general, the sooner you submit that form, the sooner you're likely to get an insurer to respond to your claim and hopefully get paid (more on that below).
What if your insurance company doesn't request a proof of loss? Look at your insurance policy for definitive guidance, but in most cases you're not required to submit an signed proof of loss statement unless your insurance company requests it.
Special Grace Periods Due to Hurricane Ian
Hurricane Ian has prompted the Governor of Florida and the Florida Office of Insurance Regulation to issue several Emergency Orders making special accommodations that can help homeowners. Among other things, these Emergency Orders provide temporary protection and relief to Florida Homeowners affected byHurricane Ian. Here’s a snapshot of how these orders could affect you as a Florida homeowner.
The Emergency Orders Temporarily Bar Insurance Cancellations and Non-Renewals
Regardless of whether you were affected by Hurricane Ian, the Emergency Order bars insurers from cancelling or non-renewing any preexisting Florida property or casualty policy (this includes homeowner’s policies) on or between September 28, 2022, and November 28, 2022. Moreover, if your insurer issued a notice of cancellation within the ten calendar days preceding September 28, 2022, the insurer must withdraw the notice and wait to reissue it until November 28, 2022.
If Hurricane Ian damaged your Florida home, you have greater protections from cancellations and non-renewals, as your insurer cannot cancel or non-renew the policy covering that home until at least 90 days after you’ve substantially repaired the damage to your home. Fla. Stat. § 627.4133(2)(d)(1). Be aware that a few exceptions do apply to this rule, including non-payment of a premium owed. Fla. Stat. § 627.4133(2)(d)(2)
The Emergency Orders Extend Policyholder Deadlines
For any policyholder deadline that would have fallen on or between September 28, 2022, and November 28, 2022, the Emergency Order extends that deadline to November 28, 2022. Rule 69O-142.015(2)(c). For example, if your deadline to pay your premium on a Florida homeowner policy normally falls on October 6, 2022, under the Executive Order you don’t have to pay that premium until the earliest of November 28, 2022.
It's important to note that these grace periods do not relieve you of your duties as an insured to cooperate and provide information related to a claim. Nor do they eliminate your obligation to pay premiums owed—they just postpone it.
Deadlines for Your Insurer
Insurer’s Deadline to Acknowledge Your Claim: 14 Days
Unless there are extenuating circumstances, the insurance company must acknowledge your claim within 14 days of your first communication to the insurer regarding your claim. Fla. Stat. § 627.70131(1). In its acknowledgment, your insurer is required to send you any forms they want you to complete or instructions that they want you to follow. Fla. Stat. § 627.70131(2).
This 14-day deadline actually applies to all of your communications with your insurer about your claim. Each time you communicate with your insurer about your claim, they should respond to that communication within 14 days. Fla. Stat. § 627.70131(1)
Insurer’s Deadline to Begin Investigating Your Claim: 14 Days from when you submit your Proof of Loss
Your insurer must begin investigating your claim within 14 days of receiving your written proof-of-loss statement, your insurer has 14 days to begin investigating your claim. This is one reason it’s so important to put together and submit a proof-of-loss statement as soon as you’re able to do so.
Insurer’s Deadline to Physically Inspect Your Property: 45 Days from when you submit Your Proof of Loss (unless it’s a Hurricane)
Your insurer must conduct its physical inspection of your property (performed by one of its adjusters) within 45 days of receiving your written proof-of-loss statement. Fla. Stat. § 627.70131(3)(b). But note: This deadline doesn’t apply if your claim is subject to a hurricane deductible in your policy.
Insurer’s Deadline to Respond to Coverage Questions: 30 Days from your written request
If you ask your insurer in writing whether it will provide coverage for your claim, your insurer has 30 days to respond confirming whether your claim is covered in-full, partially covered, denied, or being investigated.
Important caveat! This 30-day deadline applies only if you have submitted a written proof-of-loss statement. Yet another reason that the sooner you can submit a written proof-of-loss statement, the sooner your insurance company has to act on your claim. “In writing” includes all written electronic communications, like email, text, and written online chats threads.
Insurer’s Deadline to Pay (or Deny) Your Claim: 90 Days from when you submit your Proof of Loss
Your insurer must pay or deny your claim (in whole or in part) within 90 days of receiving your notice of a claim, unless there are circumstances beyond the insurer’s control that reasonably prevent it from doing so. If your insurer is denying part or all of your claim, it must describe the reasons for its denial in reasonable detail. Fla. Stat. § 627.70131(7)(a).
If you have signed a settlement agreement with your insurer, a special, shorter deadline applies. In that circumstance, your insurer has 20 days to tender payment for that settlement amount. Fla. Stat. § 627.4265.
Right to the Adjuster’s Report
If your insurance company’s adjuster has created a detailed estimate of your loss, then it must provide you with a copy of that report within seven days of your request. You should address that request to a representative of your insurance company. If you’re dealing with an independent adjuster, copy the adjuster in your request. If your insurance company adjuster hasn’t yet created the report, you can still request a copy of it – if the adjuster later creates a report (not all claims require a report), it will have seven days from completion of the report to send you a copy. Fla. Stat. § 627.70131(3).
Assignments of Benefits
To be enforceable in Florida, a Assignments of Benefits must meet all of the following requirements:
- Be in writing and executed by and between you and the contractor.
- Contain a provision that allows you to cancel the assignment agreement without a penalty or fee by submitting a written notice of cancellation signed by the you to the assignee:
- within 14 days after the execution of the agreement,
- at least 30 days after the date work on the property is scheduled to commence if the assignee has not substantially performed, or
- at least 30 days after the execution of the agreement if the agreement does not contain a commencement date and the assignee has not begun substantial work on the property.
- Contain a provision requiring the assignee to provide a copy of the executed assignment agreement to the insurer within 3 business days after the date on which the assignment agreement is executed or the date on which work begins, whichever is earlier.
- Contain a written, itemized, per-unit cost estimate of the services to be performed by the assignee.
- Relate only to work to be performed by the assignee for services to protect, repair, restore, or replace a dwelling or structure or to mitigate against further damage to such property.
- Contain the following notice in 18-point uppercase and boldfaced type:
Under Florida law, a contractor (or anyone else) receiving rights to a claim under an AOB:
- Must provide you with accurate and up-to-date revised estimates of the scope of work to be performed as supplemental or additional repairs are required.
- Must perform the work in accordance with accepted industry standards.
- May not seek payment from you exceeding the applicable deductible under the policy unless asked the contractor to perform additional work at the your own expense.
- Must, as a condition precedent to filing suit under the policy, and, if required by the insurer, submit to examinations under oath and recorded statements conducted by the insurer or the insurer’s representative that are reasonably necessary, based on the scope of the work and the complexity of the claim, which examinations and recorded statements must be limited to matters related to the services provided, the cost of the services, and the assignment agreement.
- Must, as a condition precedent to filing suit under the policy, and, if required by the insurer, participate in appraisal or other alternative dispute resolution methods in accordance with the terms of the policy.
- If the contractor is making emergency repairs, the assignment of benefits cannot exceed the greater of $3,000 or 1% of your Coverage A limit.
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