As insurance companies deal with financial losses, they are ramping up efforts to mitigate risks and losses by requesting more home inspections be performed. The goal is to require additional homeowners to take care of any possible issues or the insurer may be able to find justification to get rid of properties that are considered a risk.
One South Florida homeowner discovered this after deciding to switch to an insurer with a reduced annual rate. The new insurance company sent the homeowner a letter mandating that he remove a historic oak tree from his property within fifteen days. However, the company sent another letter indicating that the homeowner’s policy would not be renewed once it expired in May, despite not initially specifying which oak tree they wanted removed.
According to the source Sun-Sentinel article, the homeowner is not alone. Other policyholders are also at risk of being dumped as insurance companies conduct more home inspections and discover risks that will justify their decision to cancel a policy or not renew it.
Under Florida law, insurance companies have 90 day “grace period” of sorts to check that the details submitted by the customer in their application is right and to decide if the risk is worth covering following a contract signing. The insurer may cancel a policy within that period no matter the reason and refund any premium that has been charged.
This information is provided by Miami insurance attorney Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys or a Miami insurance settlement lawyer and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.