Insurance companies are taking an unusual approach to reducing or eliminating the odds of future claims costs, according to a recent Sun Sentinel news article. At least three settlement checks received by homeowners have included stipulations that accepting the check releases the insurance company from future obligations involving the claim. The strategy has already generated controversy which, according to the article, attorneys believe is an intimidation tactic to prevent policyholders from seeking payment for additional costs.
At least three different insurance companies have included language of some kind absolving them of future expenses, using terms such as “receipt and release in full settlement”, “full accord and satisfaction of a disputed loss”, or “release, acquit and forever discharge”. Last resort insurer Citizens Property Insurance Corp., on other hand, recently stated that Hurricane Irma’s extensive damage would likely result in higher repairs than what it originally estimated, potentially resulting in having to reopen claims.
You can learn more about this recent insurance development by visiting http://www.sun-sentinel.com/business/fl-bz-insurers-claim-release-language-20180103-story.html.
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 and receive a free consultation We look forward to working with you.
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