Anti-Public Adjuster Endorsements: What Policyholders Need to Know

In recent years, a subtle yet significant clause has been quietly making its way into more and more insurance policies: the anti-public adjuster endorsement. But what exactly does this mean for you, the policyholder? This provision effectively restricts your right to engage a public adjuster—professionals who advocate on your behalf to ensure fair claim settlements. As this trend grows, understanding the presence and impact of such endorsements in your policy has never been more important.

The Challenge of Understanding Insurance Policies

For many, an insurance policy is a safety net, yet it's often wrapped in complex terms and conditions that can be difficult for the unitiated to fully understand. This isn't a reflection on policyholders but is due to policies being written in dense legal language that almost appears to be intentionally overly complicated.

Often, it's not until the claims process begins that insureds get a crash course on what's covered or more importantly, what isn't. Amidst all of this confusion, the role and benefits of a Public Adjuster might not be clear to many. For more insights into this topic, don't miss our blog here where we explore it in detail.

The Impact of Anti-Public Adjuster Endorsements

When policyholders come across an anti-public adjuster endorsement in their policy, they might not understand what it means or the protections they're losing. These clauses benefit the insurance company by taking advantage of the insured's lack of knowledge, removing essential support when it's most needed.

Public Adjusters play a critical role in the claims process, offering expert guidance and advocacy to ensure policyholders receive the full benefits their policy entitles them to. They meticulously review your policy, assess your loss accurately, and negotiate with the insurance company on your behalf, aiming to secure a fair and just settlement.

This expertise is especially vital in complex or large-scale claims, where navigating the intricacies of policy language and claim documentation can be particularly challenging. Without the possibility to engage a Public Adjuster, policyholders may find themselves at a significant disadvantage, struggling to achieve the compensation they rightfully deserve.

The Legal Consequences for Policyholders

This restriction not only limits insured's options for professional claims representation but also leads to more disputes ending up in court. Without the option to hire a public adjuster, many policyholders have no choice but to seek legal representation, escalating their claim disputes into legal battles.

Our Commitment

At its core, the anti-public adjuster endorsement works against the consumer's interest. VIP Adjusting is committed to empowering our clients with the knowledge and support they need to navigate these complex situations. If you're concerned your policy might contain an anti-public adjuster endorsement or other similar restrictive provisions, don't hesitate to reach out. Contact us today for a complimentary policy review and consultation. We'll help you determine if such endorsements are part of your policy and discuss what steps you can take to ensure your rights and interests are fully protected.

Understanding Citizens Insurance Depopulation Program in Florida

Receiving unexpected letters about your insurance can be a tad unsettling. Many homeowners insured through Citizens Property Insurance are finding this particularly true with the influx of communications about their depopulation program. So, let's make sure you're armed with all the knowledge you need to understand what's happening.

A Quick Look at Citizens Insurance

Citizens was founded as Florida's safety net for homeowners who struggled to get coverage elsewhere. Over time, however, this "insurer of last resort" began to encompass more homeowners than ever anticipated. From September 2020 to September 2022, the number of policies swelled from 511,055 to 1,071,850. This significant increase has made Citizens the number one insurance company in Florida. Although it was initially projected to reach between 1.5 to 1.7 million policies by the end of 2023, current forecasts anticipate around 1.3 million policies.

Why Is My Policy Being Moved? The 'Depopulation' Program Explained

Depopulation isn't as ominous as it sounds; it's simply a strategy to transfer policies from Citizens to private insurance companies. The state of Florida undertakes this effort to spread out insurance risk to protect taxpayer money, stimulate the private insurance market, and ensure Citizens maintains financial stability to handle significant claims, such as those following major hurricanes. Under this program, if a private insurer offers a rate within 20% of your Citizens policy, you won't have the option to stay with Citizens. Additionally, specific policies, primarily Commercial Nonresidential ones, are subject to automatic transfer, with no option for opt-outs.

Just Received your Depopulation Letter? Here's What You Need to Know

You'll likely receive a mandatory or optional notice, which will determine what happens next.

Understanding Your Mandatory Notice

Receiving a mandatory transfer notice indicates that a private insurer proposes a rate within 20% of your current Citizen’s premium. The process here is straightforward: if there's only one private market offer, you'll transition to the new insurer automatically, no action required. However, a choice must be registered if multiple offers are presented. Failing to do so means Citizens will make the selection for you.

Navigating Your Optional Notice

When the notice is optional, things are slightly different. This scenario arises if the private insurer's rates are above the 20% benchmark compared to your current Citizens policy. You wield more control here, having the freedom to decide whether to remain with Citizens or switch to the new insurer's terms.

Speak to an Expert

Navigating these decisions alone can be daunting so be sure to reach out to your insurance agent for guidance, or if you have questions about coverages or need a comprehensive understanding of your current policy, the team at VIP Adjusting is here for you. We offer free policy reviews to help you grasp the long-term implications and ensure you're making informed decisions. Remember, your premium remains unchanged until your policy's renewal, making now the perfect time for a consultation.

If you're interested in further insights about other Citizens initiatives, please check out our posts regarding mandatory flood coverage and their managed repair program.

Home Water Supply: Shut-off Essentials

A quick how-to on turning off your home’s water supply in the event of a leak.

In Florida, as in many regions of the U.S., being prepared for emergencies is key. Hurricanes, heavy rains, and other weather events can often lead to sudden and unexpected damage to your home. One common cause of residential damage is water leaks or bursts, which can quickly escalate and cause significant harm. It's for this reason every homeowner should know how to locate and turn off the water supply in their home. Knowing how to control your home's water supply could be the difference between a minor inconvenience and a costly repair.

Knowing Your Water System: The Lifeline of Your Home

Before diving into the details, it's essential to familiarize yourself with your home's water system, focusing on key points of control. In Florida, and in most residential properties, you will typically encounter two primary water shut-off points: the street-side cut-off and the water main shut-off valve. Beyond these, you'll also find various interior shut-off valves throughout your home, at locations like under sinks, behind toilets, and near appliances such as washing machines and water heaters. Together, these valves give you the power to control the flow of water throughout your house, and knowing their locations can be instrumental in preventing or managing water damage in an emergency.

Understanding this system not only empowers you to control the flow of water throughout your house, but it can also help in determining the location of a potential leak. For instance, if water continues to flow after you've shut off an interior valve, the leak may be between that valve and the main shut-off. Conversely, if shutting off the main valve stops the leak, you'll know the issue is somewhere within your house. Being knowledgeable about these locations and how they function within your home's water system can be instrumental in preventing or managing water damage in an emergency.

The Street-Side Cut-off: Your First Line of Defense

The first point of entry for water into your property is the street-side cut-off. This valve is typically located close to the street, often near the curb in a concrete box usually marked "water" or "H2O." It's important to know this location, as it can be used to completely shut off all water supply to your property, ideal in the case of major leaks or if the other valves are inaccessible or not working. This valve typically requires a meter key or wrench to turn. To shut off the water, turn the valve clockwise until it stops. Remember, always check with your local water company before operating this valve.

Please note: This shut-off is typically operated by the water company, and in some municipalities, homeowners may be prohibited from accessing it without permission. Always check with your local water company regarding regulations.

The Well Water Variant: A Special Consideration

For homes that utilize well water, the shut-off process can differ slightly. Unlike municipal water supply systems, well water systems often depend on electricity to pump water into the home. Therefore, in many cases, turning off the electrical circuit that powers your well pump effectively shuts off your water supply. This electrical box is usually located near the well pump system or in your home's main electrical panel.

There should also be a shut-off valve located on the pipe that runs from the well pump to your home. This valve works similarly to the exterior cut-off mentioned above. Shutting off this valve will stop the flow of water from the well into your home without affecting the well pump.

Remember, well systems can be complex and may vary significantly from home to home. It's always recommended to familiarize yourself with your specific system and consult a professional if you're unsure. As with homes using municipal water supplies, understanding and effectively operating your well water shut-off system can help prevent water damage, conserve resources, and provide crucial control over your home's water supply.

The Water Main Shut-off Valve: Your Essential Water Gatekeeper

The next critical location to understand is the water main shut-off valve, which may not always be located on the exterior of your home. Typically, this valve is in line with the street-side supply, often running along the exterior wall of your house. That being said, don't be surprised if you find it in other locations based on the specifics of your home's construction and design.

You can often find the water main shut-off valve where the water line enters your home, which could be inside an insulated box to protect it from Florida's heat. In some homes, it could be located inside a garage, basement, utility room or near the home’s water heater. Regardless of its location, this valve allows you to turn off the water supply to the entire house without affecting the street-side supply. This valve is usually a round wheel or a lever. Turn the round wheel clockwise or the lever perpendicular to the pipe to shut off the water.

Knowing the whereabouts of this valve is incredibly beneficial, particularly if you detect a leak within your home but still need water for your garden or sprinkler system. Understanding the specifics of your home's layout can help you locate this essential water control point quickly and efficiently during a water emergency.

Interior shut-offs: Targeted Control

Beyond the primary shut-off points at the street-side and the water main, your home's water system includes a series of interior shut-off valves. These valves are strategically located at various points throughout your house, giving you the ability to control water supply to specific areas and appliances.

These valves are typically small round wheels or levers located on pipes leading to your fixtures. To close them, turn the round wheel clockwise or the lever so that it's perpendicular to the pipe. In all cases, it's a good idea to turn these valves gently to avoid causing damage. If they're stuck, don't force them. Instead, call a professional plumber for assistance.

You can typically find these valves:

Under Sinks: Usually, there is a pair of valves—one for hot water and one for cold. Turning these valves clockwise will stop the water flow to the sink.

Behind Toilets: You'll often find a single valve near the base of the toilet, usually on the wall or floor. Turning this valve will shut off the water supply to the toilet.

Near Water-Using Appliances: Appliances like washing machines and dishwashers often have a dedicated shut-off valve. You might find it on the wall behind the appliance or in a box recessed into the wall.

Near Water Heaters: Water heaters usually have a shut-off valve on the cold water supply pipe leading into the unit.

Outside Faucets: If your home has outdoor faucets for gardening or other uses, they usually have their own shut-off valves inside the house.

In the Basement or Utility Room: If your home has a basement or utility room, you may find shut-off valves controlling the water flow to the upper floors or specific sections of your home.

However, it's important to note that not all areas of your home may have dedicated shut-off valves. For instance, shower or bathtub plumbing often lacks accessible interior shut-off valves. Similarly, older homes might not have as many interior valves as newer constructions. In such cases, you would need to use the water main shut-off valve to control the water supply.

Knowing the location of these interior shut-off valves allows for quick response to leaks or bursts, preventing further damage and allowing for easier repair. So, invest the time to locate and understand these valves in your home—it's knowledge that could save you significant stress and repair costs in the future.

Why It Matters

Knowing how to control your home's water supply is more than just a handy skill. It's a crucial aspect of home maintenance that can help prevent water damage, conserve water, and even save you money on your water bill. In an emergency situation, being able to quickly shut off your water can prevent a minor issue from becoming a major disaster.

Additionally, regularly checking these valves and turning them off and on can prevent them from getting stuck over time. This can be especially important in older homes where the plumbing systems may not have been used or maintained regularly.

Stay Prepared

As public adjusters, we see first-hand the damage that unexpected water leaks can cause. It's our mission to help you mitigate such risks and ensure that you're fully prepared to protect your home. Remember, prevention is always better than cure. So take the time today to locate your water cut-off points and familiarize yourself with how to operate them. Your home, your wallet, and your peace of mind will thank you.

Recent Florida Insurance Legislative Changes

In the past year, there have been several significant changes regarding property insurance in Florida that many homeowners may not be aware of. These alterations have deep implications for policyholders, and unfortunately, many of these changes could negatively impact them. As public adjusters, it is our duty to ensure that you are kept abreast of these changes and understand how they could affect your insurance coverage and claims. Many of these points will be further elaborated in upcoming blog posts, but for now, we wanted to provide a brief summary of the recent legislative changes.

Special Session - December 2022

In December 2022, the Florida Legislature convened for a Special Session specifically to address property insurance among other topics. The Legislature passed Senate Bill 2A, which introduces sweeping changes to the property insurance claims process, reinsurance, regulation of insurance companies, and more. Here's a summary of some of the key changes that you need to be aware of.

Awards of Attorney Fees in Property Insurance Lawsuits

One of the more controversial changes brought about by Senate Bill 2A is the repeal of the one-way attorney fee provisions related to property insurance claims. Previously, if an insured homeowner disputed a claim with their insurance company and won the case, the insurer would be required to pay for the homeowner's attorney fees. This arrangement served as a crucial protection for policyholders, as it ensured that they could afford legal representation in a dispute with their insurance company, regardless of their personal financial situation.

However, with the repeal of this provision, neither party can be awarded attorney fees in a property insurance claims lawsuit. This change could significantly disadvantage homeowners, who may find themselves in a David vs. Goliath situation when trying to challenge decisions made by their insurance companies. The financial burden of attorney fees may deter some homeowners from pursuing rightful claims and could potentially tip the balance of power toward the insurance companies who can afford protracted legal battles. It's a shift that emphasizes the importance of understanding the fine print of your insurance policy and seeking professional advice when needed.

Claim Filing Deadline

The deadline for policyholders to report a claim has been reduced from 2 years to 1 year for a new or reopened claim, and from 3 years to 18 months for a supplemental claim.

Prompt Pay Laws for Property Insurance

The bill amends the prompt pay laws to encourage quicker resolution and payment of claims. Some notable changes include reducing the time for insurance companies to pay or deny a claim from 90 to 60 days and the time for insurance companies to review and acknowledge a claim communication from 14 days to 7 days.

Assignments of Benefits

The bill prohibits the assignment of any post-loss insurance benefit under any residential or commercial property insurance policy issued on or after January 1, 2023.

Regulation of Insurance in Florida by the Office of Insurance Regulation (OIR)

The bill enhances the OIR’s ability to conduct market conduct exams of property insurance companies following a hurricane, including examinations of Managing General Agents (MGAs).

Bad Faith Failure to Settle Actions Against Property Insurers

The bill requires a court finding of breach of contract before a policyholder can sue a property insurance company for bad faith based on how the insurance company settled the claim.

Citizens Property Insurance Corporation (Citizens)

The bill introduces a number of changes to Citizens' policies, such as if a policyholder receives a renewal or take-out offer from an authorized insurance company that’s within 20% of the policyholder’s Citizens premium, the policyholder is ineligible to remain in Citizens.

Flood Notice

The flood notice is now required to be part of the declarations page of an insurance policy and encourages policyholders to purchase flood insurance.

Arbitration

The bill clarifies that insurance companies may only issue an optional endorsement related to mandatory arbitration with consent from policyholders.

Florida Optional Reinsurance Assistance Program

The bill establishes the Florida Optional Reinsurance Assistance (FORA) Program for the 2023 hurricane season. Reinsurance is insurance purchased by insurance companies, and the rates for which are expected to increase by at least 50%. The Legislature hopes that the FORA program will help mitigate the need for insurance companies to increase premiums to cover these costs.

Senate Bills 2D & 4D

The legislature had also previously concluded a Special Legislative Session in May 2022, passing Senate Bills 2D and 4D with immediate effect, introducing further changes to property insurance. These changes include the My Safe Florida Home Program providing funds for hurricane mitigation, contractor solicitation prohibitions, separate roof deductibles, claims handling, and roof compliance among others.

In summary, the recent changes to Florida's property insurance laws could potentially place homeowners at a disadvantage. From stricter claim filing deadlines to changes in attorney fee awards, these new rules seem to lean in favor of insurance companies.

We'll delve into many of these topics in upcoming blog posts. Meanwhile, you can read the official bill here.

Stay informed, and protect your rights as a homeowner.

Citizens Insurance Mandatory Flood Coverage: What You Need to Know

Staying up-to-date with the ever-evolving insurance market is paramount for homeowners in Florida. Anyone insured through Citizens Property Insurance Corporation should be aware of a critical development that requires immediate attention: the introduction of a mandatory flood insurance requirement. This measure aims to provide additional protection against flood-related damages but may impact some homeowners ability to afford coverage.

Originally positioned as an insurer of last resort, Citizens has grown into the largest property insurer in the state of Florida. Its new flood insurance mandate, which will apply to all policyholders regardless of their flood risk, may reduce risk exposure but also adds an extra financial burden.

Phasing in Mandatory Flood Insurance

Citizens Property Insurance Corporation has implemented a phased approach to the mandatory flood insurance requirement, ensuring that homeowners across different risk levels and property values are gradually included. Here's an overview of the rollout:

For homeowners residing in a FEMA-designated flood zone, new policies must include flood insurance by April 1, 2023. Policy renewals have until July 1, 2023, to comply with the flood insurance requirement.

For homeowners not located in flood zones, the rollout is based on property value. Starting from January 1, 2024, homes valued at $600,000 or more are required to have flood insurance. This threshold reduces to $500,000 or more starting January 1, 2025. In subsequent years, the requirement extends to properties valued at $400,000 or more by January 1, 2026. By January 1, 2027, all other personal lines residential properties insured by Citizens will be mandated to carry flood insurance.

This phased approach aims to gradually expand the flood insurance requirement, ensuring that homeowners across different risk levels and property values are gradually included.

Coverage Requirements

According to a bulletin released by Citizens:

“Under the new rule, existing policyholders located in special flood hazard areas and with wind coverage must obtain flood coverage from the NFIP or a private insurance carrier. The coverage must meet specific limits, depending on the type of property:

• Dwellings: Equal to or greater than Citizens separate Coverage A and Coverage C limits.

• Condominium or unit owners: Equal to or greater than Citizens separate Coverage A and Coverage C limits.

• Tenant contents: Equal to or greater than Citizens Coverage C limit.

• Cooperative unit owners: Equal to or greater than Citizens Coverage C limit.

If the specified limits are not available from the NFIP, Citizens will accept the maximum coverage amount for which the insured is eligible. The maximum NFIP limits are as follows:

• Regular Program: $250,000 Coverage A, $100,000 Coverage C.

• Emergency Program: $35,000 Coverage A, $10,000 Coverage C.”

For more information, you can refer to the bulletin from Citizens available here.

The Economic Burden of Mandatory Flood Insurance

The primary concern for many Florida homeowners is the increased cost that comes with mandatory flood insurance. Standard homeowners insurance does not cover flood damage; thus, obtaining a separate flood insurance policy means an increase in insurance premiums. This added cost presents a potential strain on homeowners budgets, regardless of their homes location.

Flood insurance costs vary widely, influenced by factors like location, elevation, and construction type. Hence, all homeowners will now need to manage this added financial obligation, potentially disrupting their economic stability.

Navigating The New Insurance Landscape

At VIP Adjusting, we're committed to helping you understand these changes and their impact on your insurance policy with Citizens. Regardless of location, all Citizens policyholders will eventually be required to carry flood insurance.

Addressing the Economic Challenge

Given the potential economic strain of this requirement, it's crucial to explore options to manage these costs effectively. The National Flood Insurance Program (NFIP), a federal initiative, is one such option. Alternatively, homeowners can consider private flood insurance policies that might offer more coverage flexibility.

We advise homeowners to compare different quotes, understand what's covered, and choose a policy that both fits their budget and adequately addresses their risk.

Final Thoughts

Citizens Insurance's flood insurance requirement introduces an additional cost that could strain Florida homeowners budgets. Despite this, it's designed to protect your most significant asset—your home—from catastrophic flood damage.

At VIP Adjusting, we understand the economic implications of this change, and we are committed to helping you navigate these changes. If you have any questions or need assistance understanding your insurance coverage and options, we're here to help.

Remember, while the cost of prevention may seem high, the cost of recovery without insurance can be far higher.

Stay safe and stay informed Florida!

What To Do In The Event Of A Plumbing Leak: A Step-by-Step Guide

Imagine coming home after a long day, only to find a pool of water on your kitchen floor. A pipe under the sink has sprung a leak and the situation seems to be escalating by the second. The immediate reaction might be panic, but knowing exactly what steps to take in such a situation can help prevent further damage and ensure your safety.

Prioritize Safety: Amidst the chaos, your safety should be paramount. Be mindful of any potential electrical hazards. If the water has reached any electrical outlets or appliances, switch off the main power supply to the house immediately. Always tread carefully to avoid slipping and sliding on wet surfaces, and quickly move any objects that might become trip hazards. Depending on the source of the leak, the water may pose a health risk and direct contact should be avoided. For example, water from a sewer backup or overflow contains contaminants that can be hazardous. If this is the case, or if you are unsure, it's best to wait for a professional water remediation team to handle the situation. VIP Adjusting can help coordinate these services, ensuring experts arrive on-site to mitigate the damage while prioritizing your safety and health.

Stop the Water Flow: Once the area is safe, your next objective should be to halt the water flow. Locate the water supply valve for the leaking fixture or pipe and shut it off. If you can't find the specific valve or if the leak is severe, you may need to turn off the main water supply to your home. Be sure to read our post about how to turn off your home’s water supply in the event of a leak here. In some cases, identifying the exact source of the leak may be challenging, especially if it's a slab leak. If you're unable to locate the source or suspect a hidden leak, professional leak detection services may be necessary. VIP Adjusting can also assist in coordinating these services with trusted leak detection specialists who have the expertise and equipment to locate hard-to-find leaks accurately. By bringing in professionals, you can ensure that the source of the leak is identified and addressed effectively, minimizing further damage to your property.

Document the Damage: Before you rush to clean up, take a moment to document the situation. Using your phone, take pictures or videos of the affected area, capturing the source of the leak, the water spread, and any damaged items. This evidence will be invaluable during the insurance claim process.

Protect Your Property: After documenting the damage, it's crucial to protect your property from further harm. Start removing unaffected items from the vicinity to prevent water damage from spreading to them. This will also clear the area for professional help to work efficiently later.

Plumber’s Expertise: If necessary, you might need a professional plumber to diagnose the issue and carry out the necessary repairs. VIP Adjusting can assist you in coordinating with reputable plumbers who specialize in addressing plumbing leaks. We understand the importance of documenting the entire process, so be sure to keep all invoices and receipts related to the plumbing services provided. These documents will serve as crucial evidence for your insurance claim, demonstrating the steps taken to mitigate the damage. With our expertise in handling insurance claims, we can help ensure that the costs associated with professional plumbing services are properly documented and presented to your insurance company.

Notify Your Insurance Company: It's crucial to contact your insurance company promptly to report the incident and initiate the claims process. Using the correct terminology when describing the plumbing leak and the resulting damage is of utmost importance. By relying on the expertise of VIP Adjusting, we can guide you in effectively communicating with your insurance company, ensuring that all details are accurately conveyed. Our in-depth knowledge of insurance claim procedures enables us to assist you in providing precise and comprehensive documentation. By entrusting us, you're setting your claim up for success from the start. Let us be your partner in confidently navigating the claims process, ensuring a favorable outcome right from the beginning.

Consider Hiring a Public Adjuster: Experiencing a plumbing leak can be an overwhelming ordeal. This is when VIP Adjusting can step in to provide invaluable support and assistance. One of the key advantages of enlisting our services is our ability to coordinate necessary tasks efficiently. We can help coordinate leak detection services, plumbing repairs, and, if required, water mitigation efforts. The goal is to ensure that the insurance company is billed directly for these services when possible, helping to minimize any out-of-pocket expenses for you, the homeowner.

Beyond the coordination of services, VIP Adjusting brings an added layer of security to your insurance claim process. Our team of professional public adjusters ensures that all damage and necessary repairs are meticulously documented and effectively presented to your insurance company.

Hiring a public adjuster like VIP Adjusting can be a game-changer in situations like these. We not only take the burden of the claims process off your shoulders but also aim to maximize your claim settlement. In the face of a plumbing leak, VIP Adjusting is here to help you navigate the path to recovery, allowing you to focus on returning to your normal life.

What to Do When Your Insurance Company Denies Your Homeowner's insurance Claim

Denied Claim? We can help.

If your homeowner's insurance claim has been denied, it can be stressful and frustrating. However, there are steps you can take to appeal the decision and get the coverage you deserve. Here are some tips to consider:

SIMPLE TIPS:

1. Review your policy: Take the time to carefully review your homeowner's insurance policy, including the coverage limits, exclusions, and any other details that may have affected your claim.

2. Understand the reason for the denial: Contact your insurance company and ask for an explanation of why your homeowner's insurance claim was denied. Be sure to understand their reasoning and ask for any supporting documentation.

3. Gather evidence: If you believe your homeowner's insurance claim was denied unfairly, gather any evidence that supports your case. This may include photos, repair estimates, or witness statements.

4. Talk to the Desk Adjuster: If you believe your homeowner's insurance claim was wrongly denied, you can communicate your concerns with your insurance company. Work with your desk adjuster to provide all necessary documentation and make a strong case for why your claim should be approved.

5. Consider hiring a public adjuster: If you're having difficulty with the appealing the insurance company, the process at large or negotiating a settlement, consider hiring a public adjuster to help you. They can work on your behalf to negotiate with your insurance company and help you get the settlement you deserve.

6. Seek legal advice: If all else fails, you may need to seek legal advice from an attorney who specializes in homeowner's insurance law. They can help you understand your rights and explore your options for legal action against your insurance company.

Dealing with a denied homeowner's insurance claim can be frustrating, but it's important to take action to protect your rights and ensure that you receive the coverage you're entitled to under your policy.

We, at VIP Adjusting, deal with denied claims all the time. We are able to overturn denials by presenting evidence and data in an appropriate and detailed manner that the insurance company hadn’t considered or was unaware of from their field adjuster. If the insurance company stands on their denial, then we have set up the claim in an organized and detailed manner for an attorney to take over for legal pursuit.

When your claim is denied, and you have exhausted your resources, contact a public adjuster to help you handle the insurance claim. They are professionals that adjust claims daily. Trust in them and the process.

Citizens Property Insurance Corporation - Managed Repair Program

Make sure your public adjuster isn't costing you your benefits

When making an insurance claim, the process is already built in favor of the insurance company, so when seeking help with your claim, you should make sure your public adjuster knows what they're doing before submitting your claim.

We've received a number of calls in the past few months asking to help homeowners who have policies with Citizens who are either making a new claim for water damage, or have already made a claim with another adjuster, and the new policies issued by Citizens are NOT water damage friendly.

Managed Repair - Citizens Property Insurance Corporation

For obvious reasons, insurance companies want to cut other entities out of the claims process. They'd like to avoid adjusters, contractors, and the like because it's an easier process for them to navigate start to finish.

There are also legitimate reasons for insurance companies to do this, as well, such as to limit exposure to certain bad actors who may hold them hostage with unreasonable bills for restoration services or construction services. We've discussed some of this in the past generally with the option to repair, or other insurance companies managed repair programs, which are on a claim by claim basis.

Citizens new insurance policies, beginning in 2021 contain a MANDATORY managed repair program for all water damage claims. That means Citizens becomes your contractor for all plumbing leaks, including trenching and repairing broken pipes, drying services, mold, and anything related.

The caveat here is that it's still optional, but the option is to the insured homeowner. If the insured doesn't want to accept the managed repair, or doesn't know better because they haven't reviewed their policy or received bad advice from a public adjuster, the total of all damages is capped at $10,000. That means if you need to rip up the flooring throughout the whole house, which can easily approach $100,000.00 just asking for payment of your claim can trigger a $10,000 limit.

Your claim always starts with your agent!

No, that's not saying you should call your agent to make a claim. What we mean is that having the right insurance policy and the right coverages for you before there's ever a drop of water causing damage in your home.
There are so many insurance companies out there offering policies with minimal discounts that cap water damage at $10,000 hoping no one will notice, this is a question every homeowner in Florida (especially in the Treasure Coast!) should be asking their agent up front, and honestly, agents should be sending disclaimers.

The difference with Citizens Property Insurance Corporation is that it was meant to be an insurer of last resort if a home is either uninsurable or other insurers are significantly more expensive. Because of the explosion of rates statewide, Citizens has become the default for many homeowners because it's the most reasonably priced. Well, now it's worth deciding whether that price is worth the inferior produce they're selling.

Public Adjusting Services

Citizens is what's often referred to as a quasi-governmental agency. It's not fully state run, but it is a creature of the legislature and is allowed to operate differently than private insurance companies. If you have to make a claim and find yourself with Citizens as your insurer, our public adjusters in Palm Beach County, Martin County, and St Lucie County will be happy to provide advice on how to proceed and conduct a free policy review to see if your claim falls under the reach of these limits.

VIP Adjusting's public adjusters are happy to provide a free claim evaluation and consultation. Please call today, or contact us, and we'll be more than willing to discuss.

VIP Adjusting Response to Hurricane Sally in NW Florida

The public adjusters from VIP Adjusting have responded to NW Florida to assist insureds with damage related to Hurricane Sally

It's in our nature to help people in any way we can, and as the track of Hurricane Sally continued to shift east before making landfall, our public adjusters made preparations to respond in Pensacola if the need should arise. 

Several hotel reservations were made throughout the area in case power was knocked out or damage was widespread like we saw in the aftermath of Hurricane Michael in Panama City in 2018.

As it turned out, the storm made landfall just about right on the Florida-Georgia line. Our public adjusters immediately mobilized and went to help.

The damages caused by Hurricane Sally

Hurricane Sally made landfall as a Category 2 storm and took its sweet time passing through. Although the winds weren't incredible like the ones from Hurricane Michael, the length of time it spent in the area allowed those winds to do some damages. The whole area saw downed trees and many areas were without power for quite some time. Our public adjusters have also observed missing shingles and damaged roofs, as well as damage caused by projectiles. 

Closer to the coast and along the water, there was significant damage caused by storm surge and flooding, causing many businesses along the beach, in downtown, and in Perdido Key to have to shut down for repairs. 

Public Adjusting Services for Hurricane Victims

VIP Adjusting's public adjusters remain ready, willing, and able to assist homeowners who have sustained damage from the storm with making sure they're fairly paid by their insurance company. That’s our job; to be a check on your insurance company and make sure they’re looking out for you instead of their own interests.

We know there's a big military presence in and around Pensacola and that many service members are insured by USAA. Just because an insurance company insures service members and their families does not mean they are perfect, and we are happy to provide a free claim review to anyone who has received an undisputed payment, and we're also happy to provide references from Panama City whose USAA claims we helped them with.

In addition to homeowners, our public adjusters have experience with commercial building and construction that is invaluable for evaluating commercial insurance claims, and we've handled a number of business interruption claims from multiple storms. 

Florida Claims Only!

Unfortunately, as much as we'd like to help all storm victims, Alabama prohibits public adjusting, and although there's significant damage across the Florida border, our services will be offered for Florida residents only. 

If you or a loved one have a home or business that's sustained damage in the Pensacola area, VIP Adjusting's public adjusters are happy to provide a free claim evaluation and consultation. Please call today, or contact us, and we'll be more than willing to discuss. 

Valued Policy Law for Florida Homeowners Insurance Claims

When there's significant damage to your home, or your home can't be rebuilt, Florida's Valued Policy Law may justify payment of your policy's limits

It's no secret. Insurance companies hate paying claims, and it's no different throughout Florida when a home or commercial building is damaged by a sudden and accidental event. 

If the damage is so significant that the home may be a total loss, or a federal, state or local building code or regulation requires the property be rebuilt, it's no longer a time to nitpick the amount of the loss. 

In the experience of our public adjusters, insurance companies often ignore this law when this type of damage occurs, and it's more important than ever to have someone in your corner looking out for you. 

Florida's Valued Policy Law - Fla. Stat. 627.702

What is the Valued Policy Law? Fla. Stat. 627.702 says that "in the event of the total loss of any building, structure, mobile home..or manufactured building...in the absence of fraudulent or criminal fault on the part of the insured or on acting [on their] behalf, the insurer's liability under the policy for such total loss, if caused by a covered peril, shall be in the amount of money for which such property was so insured as specified in the policy and for which a premium has been charged and paid." 

What does that mean? Well, it means the if you're in Florida and you have property insurance and the property is a total loss because of a peril covered by the insurance policy, then the insurance company is supposed to pay you the policy limit listed on the insurance policy's declaration page.

Florida's Valued Policy Law dates back to 1899 and in short is a way to fix the price of a total loss so that an insurance company isn't withholding 90% of the insurance proceeds for months and months (or force a homeowner into litigation) to say the property was either overinsured or underinsured. 

It's worth noting that the Valued Policy Law does not apply when there's blanket coverage when two or more buildings are insured under a singular combined limit of insurance, but our public adjusters can check your policy for you and verify this. 

So what is a total loss?

Florida's Valued Policy Law doesn't specifically define the term "total loss" and that’s part of the reason insurance companies largely ignore it. Luckily, Florida's courts have defined the term and it can either have to do with the types and amount of damage to the home or building, the feasibility of repair, the application of laws, codes, and ordinances to the repairs, or all three. 

When evaluating the damages, the courts have created an "identity test" and a "restoration test" to evaluate whether a total loss exists under the VPL. For application of codes and ordinances, the courts have defined total loss under the "constructive total loss" test. 

The "Identity Test" to determine a total loss

The "identity test" to determine if a structure is a total loss says that if the damage to the structure is so severe that it has lost its identity and character as a building, even though a portion of the building's components remain and could be utilized for some useful purpose, then the property is a total loss.

This is a debatable test and can justify a dispute between your public adjuster and the insurance company. The property doesn't need to be a pile of rubble, but if the damages are so significant that the building isn't recognizable as the same building, even if parts of it are usable, then the identity test may apply. 

When looking at the before and after images of a home damaged by Hurricane Michael to the right, the insurance company tried to argue that because the home was still the same basic shape, it didn’t meet the criteria of the identity test.

Satellite image of a home in Panama City prior to Hurricane Michael in October 2018

The same home via drone after Hurricane Michael had caused damage, knocking down several exterior walls

The "Restoration Test" to determine a total loss

The "restoration test" is also subjective to some extent and is open for debate, but it is more clearly defined that a structure is a total loss if a reasonably prudent owner would not use the remains of the structure after the loss as a basis for restoring the building to its pre-loss condition.

This can mean a couple of different things, and your public adjuster can assist with these evaluations and make these arguments to your insurance company. It could mean that it costs more to repair the home than to demolish and rebuild, or it could mean that some components or structural elements of the property are questionable to include in repairs. This often happens either after a fire, where structural components were exposed to intense heat, or in the aftermath of a hurricane where huge wind forces or flood waters affected the building, but these aren't the only situations.

In addition to the damage pictured to the home above, the missing roof, the knocked down exterior walls, the cracked and leaning remaining exterior walls, and the water and mold in every building material “inside” what used to be the home, the wind also applied so much force to the hot water heater that it broke several copper plumbing lines inside the poured slab which would require significant trenching of the slab to repair.

"Constructive Total Loss"

A "constructive total loss" is the most definitive way to apply the Valued Policy Law. Under the "constructive total loss" test a building is a total loss when it is damaged by a covered peril and an ordinance or regulation prevents repair. 

The most common occurrence and application of this test is related to elevation requirements, either locally, or through FEMA's regulations regarding the National Flood Insurance Program.

Many areas of Florida, in response to a rise in sea level, are requiring homes be built at certain elevations. If a building pre-dated this regulation, once significant repairs are required because of a covered loss, the building department may require the home to be rebuilt at a higher elevation. This would be a constructive total loss. This is common in the Florida Keys, but also happens on throughout Florida for beachfront homes or properties on barrier islands, such as Jensen Beach.

More common than a local building requirement is the regulations from FEMA and the NFIP where, in order to be eligible for flood insurance, a home must be a certain amount above the areas Base Flood Elevation. Our public adjusters see these types of claims in the aftermath of hurricanes all the time. If a home sustains "substantial damage" exceeding 50% of the property's appraised value, then the property is required to be brought in compliance with the current regulations as the the base flood elevation. 

Substantial Damage Determination from a local building department

In addition to a hurricane, the constructive total loss test may come into play relatively easily for a mobile or manufactured home that is appraised at a relatively low value and might have a significantly lower policy limit. 

There's a lot to evaluate to determine whether damage to your home constitutes a total loss justifying the payment of your insurance policy's limits. Our public adjusters have been through these situations many times and can explain the process as it applies to your specific situation, and present information to your insurance company on your behalf. If you think your home may have sustained enough damage to constitute a total loss, call or contact VIP Adjusting's public adjusters today for a free claim review.  

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