Restoration franchise for Florida water damage? Protect your claim

If you are about to call a national restoration franchise for water damage in your Florida home, do three things first. Take photos and video, read every form the crew hands you before you sign, and report the claim to your insurer yourself. The crew's scope, pricing and paperwork may become relevant to the claim. Keep copies and provide relevant documents to the insurer when required by the policy or requested during the investigation. Louis Law Group is a law firm, not a restoration company, and it does not recommend any contractor.

Ten minutes before the crew arrives

Once demolition starts, nobody can see the room as it was. The Homeowner Claims Bill of Rights advises policyholders to take photographs or video of damage before and after any repairs and to keep the damaged property, if feasible.

• Video every wet room. Say the date and what you think caused the water.
• Photograph ceilings, baseboards, cabinets, flooring and the source, such as a supply line, water heater or roof leak.
• Photograph damaged belongings, including labels and model numbers.
• If practical, ask the crew to set aside a sample of removed drywall, flooring or pad, and the failed part.

Not sure your leak is a covered type? See what qualifies as water damage in Florida.

The tablet at the door: what you are being asked to sign

Before any equipment comes off the truck, you may be handed a work authorization, a service agreement, a payment form or a direct-pay form. Look for:

• Exactly what work is authorized, such as extraction, drying, tear-out or moving your belongings.
• How the work will be priced, and whether you will get an itemized list.
• What you owe out of pocket, and when.
• Any fee based on a percentage of your insurance proceeds. The bill of rights advises you to read any such contract carefully.
• Any wording about your insurance benefits, your insurance proceeds, payment from your insurer or the company dealing with your insurer for you.

If a form mentions your insurance benefits or says who your insurer will pay, stop. Ask a lawyer to review it before you sign. A form that authorizes work is not the same as a document that affects your insurance benefits, and the exact wording matters. Get a copy of everything you sign.

The bill of rights also advises you to contact your insurer before you sign any repair contract, to confirm any managed repair policy provisions or optional preferred vendors.

Scope and pricing: the crew's numbers and the insurer's numbers

The crew's estimate and invoice are the company's own documents. Your insurer does its own investigation. Section 627.70131, Florida Statutes, applies to residential property insurers, including surplus lines insurers that provide residential coverage. Under it:

• Unless the policy or the law provides otherwise, the insurer must begin a reasonably necessary investigation within 7 days after it receives proof-of-loss statements, unless factors beyond its control cause the delay.
• If it inspects in person, the adjuster must give you a document with their name and state adjuster license number. The inspection must happen within 30 days after the insurer receives the proof-of-loss statements.
• The insurer must send you a copy of any detailed estimate within 7 days after its adjuster generates it. The law does not require a detailed estimate if one is not reasonably necessary for the investigation.
• If the insurer pays less than its own detailed estimate, it must explain the difference to you in writing.

To compare the two, ask the crew for an itemized scope, moisture readings, drying logs and its photos. Keep them next to the adjuster's estimate.

Your part while the fans are running

Any duty to protect the property from further damage comes from your policy. Check the duties section. The bill of rights does not create that duty. It advises you to make and document emergency repairs that are necessary to prevent further damage, and to keep all receipts.

Keep every invoice and receipt, including the emergency call, equipment, tarps and anything else you pay for. Note the dates equipment was set up and removed.

If the damage forces you to leave your home, the bill of rights advises you to secure the property, turn off the gas, water and electricity, and contact your insurer with a phone number where you can be reached.

Report the claim yourself, then track the dates

The bill of rights advises you to file all claims directly with your insurance company. Under s. 627.70132(2), Fla. Stat., a claim or reopened claim is barred unless notice was given to the insurer as the policy requires within 1 year after the date of loss. A supplemental claim is barred unless notice was given within 18 months after the date of loss. These limits are tolled while a servicemember who is a named insured is deployed to a combat zone or combat support posting, if the deployment materially affects their ability to file.

After you report:

• Under section 627.70131, the insurer must review and acknowledge your communication within 7 calendar days, unless it pays within that time or factors beyond its control cause the failure. This acknowledgment requirement generally does not apply once you are represented by counsel, except for communications necessary to provide forms and instructions.
• An insurer issuing a personal lines residential policy must send you the Homeowner Claims Bill of Rights within 14 days after it receives your first communication about the claim, under section 627.7142, Florida Statutes.
• Within 60 days after receiving notice, the insurer must pay or deny the claim or a portion of it, unless factors beyond its control cause the failure to pay. It must explain the basis in writing. The 60 days are tolled during mediation or other alternative dispute resolution under the policy. They are also tolled if you do not provide material information the insurer requested within 10 days after you received the request. That tolling applies only to requests sent at least 15 days before the pay-or-deny deadline.
• If the insurer pays after 60 days from notice, or after any extra time the Office of Insurance Regulation allowed for factors beyond its control, whichever is later, the payment bears interest at the rate set in section 55.03, Florida Statutes. Interest runs from the date the insurer received notice.

Keep a log of each call, email and letter, with dates and names.

Frequently Asked Questions

Do I have to use the restoration company my insurer suggests?

That depends on your policy. The bill of rights advises you to contact your insurer before you sign any repair contract, to confirm any managed repair provisions or optional preferred vendors. It also says it does not stop an insurer from using its right to repair under the policy.

Can the crew start before the adjuster inspects?

The bill of rights advises making and documenting emergency repairs that are necessary to prevent further damage. Photograph and video everything first, keep samples when practical, and tell your insurer the work has started.

The crew's invoice is higher than what my insurer paid. What now?

The insurer must explain in writing the basis for any payment or partial denial. If it paid less than its own detailed estimate, it must explain the difference. Keep both documents and talk with a lawyer.

Talk to Louis Law Group

Your water damage claim may have been denied, delayed past the timelines above or paid for less than the repairs cost. Or you may have signed a form that mentions your insurance benefits. If so, it may be time to talk with a lawyer. You can 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.