Next month, a pair of legislative meetings will be held in the state capital in an effort to address an ongoing problem. Insurance and banking panels will be meeting to figure out a solution for the “assignment of benefits” alleged problem. Home insurers have warned that if a resolution is not determined, homeowners will continue to face ongoing rate hikes for the foreseeable future.
This is not the first time lawmakers will be getting together to file a bill aimed at adding restrictions and/or conditions to a contractor and their ability to seek payment for necessary repairs on behalf of the policyholder. In fact, 2017 will mark the fifth consecutive year of trying to figure out a solution. So far, all attempts at a bill have been unsuccessful due to insurers and trial attorneys failing to reach a reform agreement.
The costs of insurance claims have gone through the roof in recent years as insurers deal with a greater number of lawsuits concerning water-related emergencies that do not involve the weather. Miami-Dade County is one of the three counties where the problem is a major one. The problem begins when contractors require the policyholder to sign over the right to their policy benefits as a condition prior to beginning work on repairs.
Insurers like Citizens point to law firms largely within South Florida that frequently file numerous lawsuits accusing them of offering too little or denying responsibility entirely for claims. Under Florida law, these law firms can require insurers to pay all of their legal invoices if the insurer agrees to settle the claims for as little as $1 over the amount initially offered.
Take measures to prevent your property from sustaining additional damages in compliance with your policy after a loss. However, contact our office immediately to discuss your options and potential risk.
This information is provided by Miami insurance attorney Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys 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.