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Florida is the one state to handle and supply a statutory definition for a “re-opened declare” or a “supplemental declare.” Florida’s regulation isn’t a shopper safety regulation. As an alternative, it’s an insurance coverage firm safety regulation. The present wording of Florida’s statute on Supplemental and Reopened claims reads as follows:
627.70132 Discover of property insurance coverage declare.—
(1) As used on this part, the time period:
(a) “Reopened declare” means a declare that an insurer has beforehand closed, however that has been reopened upon an insured’s request for extra prices for loss or injury beforehand disclosed to the insurer.
(b) “Supplemental declare” means a declare for extra loss or injury from the identical peril which the insurer has beforehand adjusted or for which prices have been incurred whereas finishing repairs or substitute pursuant to an open declare for which well timed discover was beforehand supplied to the insurer.
(2) A declare or reopened declare, however not a supplemental declare, below an insurance coverage coverage that gives property insurance coverage, as outlined in s. 624.604, together with a property insurance coverage coverage issued by an eligible surplus traces insurer, for loss or injury brought on by any peril is barred except discover of the declare was given to the insurer in accordance with the phrases of the coverage inside 1 yr after the date of loss. A supplemental declare is barred except discover of the supplemental declare was given to the insurer in accordance with the phrases of the coverage inside 18 months after the date of loss. The time limitations of this subsection are tolled throughout any time period of deployment to a fight zone or fight assist posting which materially impacts the power of a named insured who’s a servicemember as outlined in s. 250.01 to file a declare, supplemental declare, or reopened declare.
(3) For claims ensuing from hurricanes, tornadoes, windstorms, extreme rain, or different weather-related occasions, the date of loss is the date that the hurricane made landfall or the twister, windstorm, extreme rain, or different weather-related occasion is verified by the Nationwide Oceanic and Atmospheric Administration.
(4) This part doesn’t have an effect on any relevant limitation on civil actions supplied in s. 95.11 for claims, supplemental claims, or reopened claims well timed filed below this part.
One concern is whether or not these notices have to supply estimates of harm, as I famous in Supplemental or Reopened Claims—Does the Discover Need to Embody Some Kind of Estimate:
What’s the lesson from this holding, and does this imply that the discover doesn’t have to incorporate an estimate of harm? ‘Higher protected than sorry’ is the lesson. Estimates and full descriptions of loss must be supplied. The court docket famous that its holding is opposite to a different appellate court docket, which raises the likelihood that the problem may very well be resolved by the Florida Supreme Courtroom. Different appellate courts might discover by hook or by crook till this authorized tie is damaged.”
A federal appellate court docket simply determined that an estimate isn’t required. 1 It first famous that Florida courts are break up on the problem and that the Florida Supreme Courtroom has not weighed in:
On this case, there are not any related selections from the Florida Supreme Courtroom decoding § 627.70132. Two Florida appellate courts, nonetheless, have weighed in. The primary is Goldberg v. Common Property & Casualty Insurance coverage Co., from Florida’s Fourth District Courtroom of Enchantment. In Goldberg, the court docket examined whether or not an insured occasion ‘was required to submit a supplemental declare earlier than submitting swimsuit for extra cost for’ its loss…Discovering that the insured’s try to assert further cost for an already adjusted loss certified as a supplemental declare below § 627.70132, the court docket concluded that the insured ‘was required to file a supplemental declare setting forth these damages he sought in extra of what the insurance coverage firm had already paid.’…The court docket acknowledged {that a} ‘competing estimate by an insured’s impartial adjuster, or by a potential contractor’ would suffice….
The second state appellate court docket resolution on level was issued after the district court docket granted abstract judgment to Nice Lakes beneath. In Patios West One Condominium Affiliation, Inc. v. American Coastal Insurance coverage Co., Florida’s Third District Courtroom of Enchantment held that § 627.70132 doesn’t require a discover of a supplemental declare to comprise an estimate of further damages…As an alternative, the statute requires solely that ‘the discover of a supplemental or reopened declare (1) be ‘given to the insurer in accordance with the phrases of the coverage’ and (2) represent an ‘further declare for restoration’ for losses from ‘the identical hurricane.’ ‘ Id. (quoting Fla. Stat. § 627.70132).
The Patios court docket explicitly rejected Goldberg’s assertion that § 627.70132 required a damages estimate, reasoning that the statute’s plain textual content didn’t comprise any such requirement and that the statute was not a ‘supplemental declare statute’ however a ‘discover of supplemental declare statute,’ delineating solely the time interval during which an insured should give discover to its insurer of the existence (however not the exact quantity) of a supplemental declare. Id. It additionally dismissed this portion of Goldberg as nonbinding dicta.”
The appellate court docket adopted the Patios case discovering as follows:
Concourse Plaza urges this Courtroom to comply with Patios, arguing that Goldberg is each factually distinguishable and wrongly determined. We want not decide whether or not Goldberg would apply to this case, nonetheless, as a result of as a federal court docket making use of state regulation, we’re sure to use Patios in any occasion. This lawsuit originated within the Miami Division of america District Courtroom for the Southern District of Florida. ‘State courts situated there are inside the territory of, and are sure to comply with selections issued by, the Third District Courtroom of Enchantment.’…. Due to this fact, as a result of that is an enchantment of a case arising out of the Miami Division, we apply the Third District Courtroom of Enchantment’s Patios resolution.
…
Nobody disputes that Concourse Plaza’s September 2020 letter sought further restoration for losses from the identical hurricane—Hurricane Irma—as the unique declare. And Nice Lakes concedes that the insurance coverage coverage by itself ‘doesn’t impose a requirement to supply an estimate of damages.’ Concourse Plaza’s September 2020 letter subsequently qualifies as a discover of a supplemental declare below Fla. Stat. § 627.70132. As a result of it was despatched inside three years of the date Hurricane Irma made landfall, the provisions of Fla. Stat. § 627.70132 had been happy.
Policyholders and public adjusters must be conscious that this resolution adopted the regulation when it was first made in 2011. As Ashley Harris famous in September 10, 2020 is Not the Statute of Limitations for Hurricane Irma Claims, the older Supplemental and Reopened claims statute allowed for 3 years to supply discover.
Now, the newer statute has a one-year time restrict for a reopened declare and 18 months for a supplemental declare. Whereas not a statute of limitation, failure to adjust to the discover provisions successfully bars additional restoration. This statute is vital as a result of insurers will use it to restrict the quantity owed whatever the declare’s advantage.
Thought For The Day
Procrastination is sort of a bank card: it’s a variety of enjoyable till you get the invoice.
—Christopher Parker
1 Nice Lakes Ins. SE v. Concourse Plaza A Conominium Assoc., No 22-13141 (eleventh Cir. Apr. 15, 2024).
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