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Split Decision: Florida Districts Clash Over Insurance Coverage for Unperformed Repairs

In the recent decision Universal Property & Casualty Insurance Co. v. Qureshi, the Florida Fourth District Court of Appeal held that homeowners cannot recover replacement cost benefits unless they have incurred expenses for repairs. The court emphasized that under both the insurance policy’s plain language and Florida Statute §627.7011(3)(a), payment of replacement cost value is contingent upon the actual completion of repairs. The ruling reversed a jury award for homeowners who had sold their property without performing the necessary repairs, addressing a crucial question about recovery for unperformed repairs in property insurance claims. About The Author

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When the Appraisal Says One Thing, But the Policy Says Another: A Florida Insurance Case Study

In a recent decision by the U.S. District Court for the Middle District of Florida, Wood v. GeoVera Specialty Insurance Company (2024 WL 3952571), the court affirmed that unambiguous policy limits remain enforceable even when an appraisal award exceeds those limits.  This decision provides valuable guidance for insurers handling post-catastrophe claims. About The Author

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Court Finds No Coverage for Loss Caused by Water Back Up Through a Storm Drain

In Carrico v. Stillwater Ins. Co., 23-CV-349-RAJ, 2024 WL 308106 (W.D. Wash. Jan. 26, 2024), the Western District of Washington considered competing motions for partial summary judgment in a property damage case involving a winter storm, where large amounts of rain and melted snow backed the drain up and the force of the water pushed through the exterior door causing damage to the entire basement level. At issue in the case was the application of the policy’s wear and tear exclusion and its exceptions.  About The Author

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Florida Appeals Court Reverses Appraisal Ordered In Storm Suit

On July 20, 2022, Florida’s Third District Court of Appeal reversed and remanded a trial court’s decision compelling the parties to proceed with appraisal and staying litigation until that appraisal was completed. Florida’s appellate court held that trial court erred in granting the motion to compel appraisal without first conducting an evidentiary hearing to determine compliance with post loss obligations. About The Authors

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About The Property Insurance Law Observer

For more than five decades, Cozen O’Connor has represented all types of property insurers in jurisdictions throughout the United States, and it is dedicated to keeping its clients abreast of developments that impact the insurance industry. The Property Insurance Law Observer will survey court decisions, enacted or proposed legislation, and regulatory activities from all 50 states. We will also include commentary on current issues and developing trends of interest to first-party insurers.

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