Hurricane Ian introduced a big storm surge with it. In some areas, the storm surge was reported to be as much as 15 toes. Of course, this raises insurance coverage questions akin to what brought about the damages to the property, the excessive winds related to the storm, or the flooding. This might be a significant subject of dispute in insurance coverage claims over the following few years. However, Florida’s Valued Policy Law might be able to supply some steering.
(a) In the occasion of the complete loss of any constructing, construction, cell residence as outlined in s. 320.01(2), or manufactured constructing as outlined in s. 553.36(13), situated on this state and insured by any insurer as to a coated peril, within the absence of any change rising the chance with out the insurer’s consent and within the absence of fraudulent or prison fault on the a part of the insured or one performing in her or his behalf, the insurer’s legal responsibility underneath the coverage for such complete loss, if attributable to a coated peril, shall be within the amount of cash for which such property was so insured as specified within the coverage and for which a premium has been charged and paid.
(b) The intent of this subsection is to not deprive an insurer of any correct protection underneath the coverage, to create new or extra protection underneath the coverage, or to require an insurer to pay for a loss attributable to a peril aside from the coated peril. In furtherance of such legislative intent, when a loss was brought about partly by a coated peril and partly by a noncovered peril, paragraph (a) doesn’t apply. In such circumstances, the insurer’s legal responsibility underneath this part shall be restricted to the quantity of the loss attributable to the coated peril. However, if the coated perils alone would have brought about the overall loss, paragraph (a) shall apply. The insurer is rarely answerable for greater than the quantity essential to restore, rebuild, or change the construction following the overall loss, after contemplating all different advantages truly paid for the overall loss.
In the case of Hurricane Ian, there’s a mixture of coated and noncovered forces. The commonplace wind coverage will exclude damages attributable to flood. Consequently, Florida’s Valued Policy Law won’t apply until the coated peril alone would have brought about the overall loss.
If a plaintiff can show that wind alone brought about a complete loss earlier than the storm surge arrived, the Valued Policy Law would require an insurer to pay the coverage proceeds.1
The subsequent urgent query is, “what constitutes a total loss?” Unfortunately, the Florida Legislature, in its infinite knowledge, gives no steering. Fortunately, Merlin Law Group lawyer Shawn Marker addressed this query in his weblog put up: Navigating Florida’s Valued Policy Law – What is a Total Loss.
If you’ve gotten any questions on your loss or the applicability of Florida’s Valued Policy Law, contact the attorneys on the Merlin Law Group.
1 Citizens Prop. Ins. Corp. v. Ashe, 50 So.3d 645, 652 (Fla. 1st DCA 2010).