Cat 3 hurricane damage in Florida: steps to protect your claim

After Cat 3 hurricane damage in Florida, what you do before and during cleanup affects your insurance claim. Before the restoration crew removes anything, photograph and video the damage. Then take reasonable steps to stop further damage, keep every receipt, read any paperwork before you sign it, and report the claim to your insurer promptly. These steps help document your claim if the insurer later disputes the damage or its cost.

Step 1: Document the damage before anything is removed

Once cleanup starts, evidence of the damage begins to disappear. Before anyone tears out drywall, flooring or roofing:

• Photograph and video every affected room, the roof, the exterior and damaged belongings.
• Take wide shots and close-ups, including water lines and openings in the roof or windows.
• Record again after emergency work and again after repairs.
• Keep damaged materials or samples when practical.

Florida's Homeowner Claims Bill of Rights, in section 627.7142, Florida Statutes, advises policyholders to "keep the damaged property, if feasible, keep all receipts, and take photographs or video of damage before and after any repairs to provide to your insurer." An insurer issuing a personal lines residential policy must provide this Bill of Rights within 14 days after receiving an initial communication about a claim. The Bill of Rights summarizes existing law and gives advice. It does not create a civil cause of action.

Step 2: Take reasonable steps to prevent further damage

Your duty to protect the property from further damage comes from your insurance policy, so read the duties-after-loss section of your policy. Separately, the Bill of Rights advises you to "make and document emergency repairs that are necessary to prevent further damage."

If you have to leave the home, the Bill of Rights advises securing the property, turning off the gas, water and electricity, and giving your insurance company a phone number where you can be reached.

Keep every receipt and invoice for tarps, materials, equipment and the crew's work. Before you enter any repair contract, the Bill of Rights also advises that you:

• Contact your insurer to confirm any managed repair provisions or optional preferred vendors in your policy.
• Confirm the contractor is licensed in Florida.
• Require proof of insurance before repairs begin.

Step 3: Read any assignment or work authorization before signing

A restoration company may ask you to sign paperwork before it starts work. Read it carefully. A work authorization or direct-pay form is not an assignment of benefits unless it actually transfers your post-loss insurance benefits to the company.

Under section 627.7152, Florida Statutes:

• Policies issued on or after January 1, 2023: a policyholder generally may not assign post-loss benefits under a residential or commercial property policy, in whole or in part. An attempt to do so is "void, invalid, and unenforceable." The statute excludes certain transfers, including a transfer to a later purchaser of the property who has an insurable interest, certain powers of attorney, and liability coverage.
• Policies issued on or after July 1, 2019, and before January 1, 2023: an assignment agreement must meet the statute's requirements. These include a written, itemized, per-unit cost estimate and a right to rescind without penalty within 14 days after signing, or within the other timeframes the statute lists. If you sign one in an urgent or emergency circumstance, the assignment under a residential policy is capped at the greater of $3,000 or 1 percent of the Coverage A limit.

The Bill of Rights also advises carefully reading any contract that requires a fee based on a percentage of your insurance proceeds.

Step 4: Report the claim promptly

The Bill of Rights advises filing all claims directly with your insurance company. Under section 627.70132, Florida Statutes, a new or reopened property claim is barred unless notice was given under the policy terms within 1 year after the date of loss. For a supplemental claim, the limit is 18 months after the date of loss. For hurricane claims, the date of loss is the date the hurricane made landfall. These limits are tolled while a servicemember named insured is deployed to a combat zone or combat support posting that materially affects their ability to file.

What your insurer must do, and when

Section 627.70131, Florida Statutes applies to residential property insurers, including surplus lines insurers that provide residential coverage. Under it, the insurer must:

• Acknowledge your claim communication within 7 calendar days, unless it pays within that period or the failure is caused by factors beyond its control. This rule does not apply to claimants represented by counsel, beyond communications necessary to provide forms and instructions.
• Begin investigating within 7 days after it receives proof-of-loss statements, unless the policy or law provides otherwise or factors beyond its control cause the delay. Any physical inspection must happen within 30 days after it receives the proof-of-loss statements.
• Send you a copy of any detailed estimate within 7 days after its adjuster generates it.
• Pay or deny the claim, or a portion of it, within 60 days after receiving notice, unless factors beyond its control cause the failure to pay, and give you a reasonable written explanation.

Factors beyond the insurer's control include an Office of Insurance Regulation order finding that a qualifying event, such as a state of emergency declared by the Governor, makes all or specified residential property insurers reasonably unable to meet these requirements in specified locations, and granting additional time. The office may not extend the period for payment or denial by more than 30 additional days. They also include policyholder fraud, lack of cooperation or intentional misrepresentation that reasonably prevents compliance.

These requirements are also tolled during mediation under section 627.7015 or policy-provided dispute resolution, and if you fail to provide requested material claims information within 10 days. That second tolling applies only to requests sent at least 15 days before the pay-or-deny deadline.

When to talk to a lawyer

Consider getting legal advice if:

• Your claim is denied in whole or in part.
• The insurer misses the timeframes above and none of the statute's exceptions applies.
• The payment is less than the insurer's own detailed estimate and you did not get the written explanation of the difference that s. 627.70131(7)(a), Fla. Stat., requires.
• You are asked to sign a settlement, release or assignment you do not understand.

Before filing suit under a residential or commercial property policy, section 627.70152, Florida Statutes requires the claimant to give the Florida Department of Financial Services written notice of intent to initiate litigation, on the department's form, at least 10 business days before filing. The department provides the notice to the insurer. The notice may not be given before the insurer has made a coverage determination. For more background, see why filing a hurricane damage claim in Florida matters.

Frequently Asked Questions

Can the restoration crew start before the adjuster inspects?

The Bill of Rights advises making and documenting emergency repairs necessary to prevent further damage, and your policy may require reasonable protective steps. Photograph and video everything first, keep damaged materials when feasible, and keep all receipts.

Is a work authorization the same as an assignment of benefits?

Not necessarily. Under section 627.7152, an assignment agreement assigns or transfers post-loss benefits. A form that only authorizes work is not an assignment. For policies issued on or after January 1, 2023, assignments of post-loss benefits are generally void, subject to the exclusions in s. 627.7152(11), Fla. Stat.

How long do I have to report Cat 3 hurricane damage?

Under section 627.70132, notice of a new or reopened claim must be given within 1 year after the date of loss, and notice of a supplemental claim within 18 months. For hurricanes, the date of loss is the landfall date. The statute does not affect the separate time limits for filing a lawsuit.

Talk to Louis Law Group

If your Category 3 hurricane damage claim was denied, delayed or underpaid, Louis Law Group can review your situation. We are a law firm, not a restoration or cleanup company. See if you qualify or call (833) 657-4812. Our office is at 12 SE 7th St Ste 805, Fort Lauderdale, FL 33301.

This article is general information, not legal advice.