Understanding the Need to Reopen a Florida Hurricane Property Insurance Claim
Florida is no stranger to hurricanes, with these powerful storms leaving a trail of destruction every season. Property owners often turn to their insurance policies to cover repairs and recovery costs when such disasters occur. However, the initial claim process can sometimes result in an inadequate settlement, leaving homeowners struggling to rebuild. This is where the need to reopen a hurricane property insurance claim arises, and having an experienced insurance claim lawyer by your side can make a significant difference.
Why Are Florida Hurricane Claims Are Often Underpaid or Denied?
Insurance companies are businesses focused on profitability. To protect their bottom line, they may minimize payouts by undervaluing claims or finding reasons to deny them altogether. Common tactics include misinterpreting policy language, underestimating the cost of repairs, or citing exclusions that may not apply to your situation.
For instance, after a hurricane, an insurer might claim that the damage was due to flooding rather than wind, even when your policy covers wind damage but not flooding. This can lead to significant financial loss if the claim is not correctly handled.
After major hurricanes like Irma (2017) and Michael (2018), it was reported that thousands of claims were reopened. For example, approximately 30% of claims were reopened after Hurricane Irma due to disputes over payment amounts, denial of claims, or new damages being discovered.
A scathing report published by The Washington Post outlined how insurance companies in Florida intentionally reduced property damage claim values by more than 80 percent. The report also highlights the importance of understanding policyholder rights.
Reasons to Reopen a Property Insurance Claim
Underpayment of the Initial Claim
Insurance companies may initially offer settlements significantly lower than the actual cost of repairs. This can happen for various reasons, including errors in damage assessment, underestimation of repair costs, or excluding certain covered damages. Homeowners who believe their claim has been underpaid can reopen it for a more accurate and fair settlement.
- For instance, after a hurricane, a policyholder may discover that the initial assessment failed to account for hidden structural damage that only became apparent after repairs began. In such cases, reopening the claim allows the policyholder to present new evidence and obtain the additional funds needed to cover the full cost of repairs.
Discovery of Additional Damage
Sometimes, property damage may not be immediately evident, especially in the aftermath of a major storm or hurricane. Hidden damages, such as water intrusion leading to mold growth or foundational issues, can surface weeks or months after the initial inspection. If a policyholder discovers additional damage not included in the original claim, reopening the claim is essential to secure the necessary coverage for these repairs.
- The Florida Office of Insurance Regulation emphasizes that policyholders should report any additional damages as soon as they are discovered to ensure they are covered under their policy (Florida Office of Insurance Regulation, n.d.).
Errors in the Initial Claim Process
Mistakes can occur during the initial claims process, whether due to clerical errors, miscommunication, or incomplete documentation. These errors can lead to the denial or underpayment of a legitimate claim. If a policyholder identifies errors in their initial claim, such as incorrect details about the extent of the damage or the cost of repairs, they may need to reopen the claim to correct these mistakes and receive appropriate compensation.
- According to the National Association of Public Insurance Adjusters, reopening a claim due to errors is a common reason for revisiting a settlement, especially when policyholders handle the claim themselves without professional assistance (NAPIA, 2023).
Disputes Over Coverage Interpretation
Insurance policies can be complex and open to interpretation, leading to disputes between policyholders and insurers over what is covered. For example, an insurer may initially deny a claim based on their interpretation of a policy exclusion. However, upon further review, it may be determined that the exclusion does not apply to the specific circumstances of the claim. In such cases, reopening the claim allows for a reevaluation of the coverage and may result in a favorable outcome for the policyholder.
- The Insurance Information Institute suggests that policyholders should carefully review their policies and seek legal advice if they believe their claim was wrongly denied based on an incorrect interpretation of the policy terms (Insurance Information Institute, 2023).
The Importance of Reopening a Claim
Reopening a claim becomes necessary when new evidence emerges, additional damage is discovered, or when you believe your initial settlement was insufficient. Florida law allows policyholders to reopen claims within a specified period, typically up to five years after the loss, depending on the circumstances and the insurance policy.
You can seek additional compensation if you’ve accepted a settlement that is later found inadequate or if your initial claim was wrongfully denied. This is where reopening the claim comes into play, but doing so effectively often requires legal expertise.
Florida Statues on Re-Opening an Insurance Claim
“A claim or reopened claim, but not a supplemental claim, under an insurance policy that provides property insurance, as defined in s. 624.604, including a property insurance policy issued by an eligible surplus lines insurer, for loss or damage caused by any peril is barred unless notice of the claim was given to the insurer in accordance with the terms of the policy within 1 year after the date of loss. A supplemental claim is barred unless notice of the supplemental claim was given to the insurer in accordance with the terms of the policy within 18 months after the date of loss.”
Reopened claim” means a claim that an insurer has previously closed but that has been reopened upon an insured’s request for additional costs for loss or damage previously disclosed to the insurer.
The Role of a Florida Hurricane Claim Lawyer
Most homeowners are not equipped to handle the complexities of insurance policies, understand the legal nuances, and effectively challenge an insurance company’s decision independently. Williams Law, P.A. insurance claim lawyers bring invaluable experience and knowledge, ensuring your claim is thoroughly reviewed and all necessary steps are taken to maximize your compensation.
- Hiring an Attorney: Legal representation can result in two to three times higher settlements than initial offers made by insurance companies. This is largely because lawyers can effectively challenge lowball settlements, navigate complex policy language, and counter the common tactics insurance companies use to minimize payouts
- Comprehensive Review of Your Case: Our lawyers will meticulously review your original claim, policy details, and any correspondence with the insurance company. They will identify areas where the insurance company may have acted in bad faith, or additional compensation may be warranted.
- Gathering Additional Evidence: Often, new damage is discovered after the initial claim has been settled or additional documentation becomes available. As experienced insurance attorneys, we know how to gather and present this evidence effectively to support your reopened claim.
- Negotiating with the Insurance Company: Insurance companies have teams of lawyers and adjusters working to minimize payouts. Having legal representation levels the playing field. Your lawyer will negotiate on your behalf to secure a fair settlement.
- Litigation, if Necessary: If negotiations fail, we can file a lawsuit against the insurance company. This legal action can compel the insurer to pay the amount owed or settle the claim in your favor.
Williams Law, P.A. Can Help You with Re-opening a Hurricane Claim in Florida
Navigating the reopening process without the help of a legal professional can be overwhelming and fraught with challenges. Our insurance claim lawyers will provide you with the expertise, support, and advocacy needed to protect your rights and receive fair compensation for your hurricane-related damages. If you’re considering reopening a hurricane property insurance claim, contact our firm at 1-800-451-6786 or fill out our online contact form.