Florida Supreme Court Rules on PACE Funding Property Assessments - Impact on Property Insurance Claims

State Attorneys v. Florida PACE Funding Agency - Property Assessment Financing

Case: State Attorneys for the Second, Seventh and Ninth Judicial Circuits v. Florida Pace Funding Agency, Etc.; Alachua County Tax Collector v. Florida Pace Funding Agency; Palm Beach County, Florida v. Florida Pace Funding Agency; Alachua County, Florida v. Florida Pace Funding Agency
Court: Supreme Court of Florida
Date: December 18, 2025
Docket: SC2024-0652, SC2024-0656, SC2024-0664, SC2024-0681

Facts

This consolidated case involved multiple jurisdictions challenging the Florida PACE Funding Agency's property assessment financing programs. PACE (Property Assessed Clean Energy) programs allow property owners to finance energy efficiency and renewable energy improvements through special assessments on their property tax bills. The dispute centered on the agency's authority to implement these assessment programs and their impact on property values and financing.

State Attorneys from the Second, Seventh, and Ninth Judicial Circuits, along with tax collectors and counties from Alachua and Palm Beach, argued that the PACE funding structure created conflicts with existing property tax collection procedures and potentially affected property insurance valuations and coverage determinations.

Ruling

The Florida Supreme Court addressed the statutory authority of PACE funding agencies and clarified the relationship between special assessments for property improvements and existing property tax collection mechanisms. The Court established guidelines for how these assessments should be handled in relation to property insurance claims and coverage disputes.

The ruling provides important clarity for property insurers and public adjusters regarding how PACE-financed improvements should be valued in insurance claims and whether such improvements affect coverage calculations or claim settlements.

Takeaway for Public Adjusters

This decision has significant implications for public adjusters handling claims on properties with PACE-financed improvements. When evaluating property damage claims, adjusters must now consider:

• How PACE-financed improvements affect replacement cost calculations
• Whether energy efficiency improvements impact coverage limits or deductibles
• The relationship between special assessments and insurance valuations
• Documentation requirements for properties with PACE financing

Public adjusters should review their property evaluation procedures to ensure PACE-financed improvements are properly accounted for in insurance claims.

How Louis Law Group Can Help

If you're a public adjuster dealing with complex property valuation issues involving PACE financing or other assessment disputes, Louis Law Group's experienced attorneys can help you navigate these challenging claims. Contact us at (833) 657-4812 for guidance on property insurance coverage disputes and claim settlements.

Source: View Full Opinion on CourtListener

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