What if your homeowner's insurance company
offers a settlement you aren't happy with? |
Article Courtesy of Channel 4 CBS News Miami
By Joe Gorchow
Published
November 31, 2023
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WATCH VIDEO |
MIAMI - CBS News Miami
Investigations digs into your rights regarding your homeowner's
insurance. Specifically, what happens if they offer you a settlement you
aren't happy with after you make a claim?
The rules have changed in Florida if you
decide you need to go to court to get what you are owed. CBS
News Miami's Joe Gorchow explains your rights.
"It feels dirty," said Morgan de la Madriz, describing how
her home currently feels and looks. "It feels like our home
is dirty."
Madriz has a full house in Kendall. A husband, two kids, and
two dogs. The smiles we saw outside the home mask concerns
inside.
"We have a sunken shower, and you could see the title
separating from the floor," said Madriz while giving us a
tour of her house.
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In January 2021, Madriz says she was about to put her
daughter to bed when she noticed something.
"We had an overflow into the hallway from the bathroom," explained
Madriz. "Water was leaking for days, and I had no idea where things
were."
Madriz showed us the Master Bathroom, one sparingly used since the
initial leak 2.5 years ago. Current issues remain in both bathrooms and
when flushing the toilet and using the shower.
"The water seeps," said Madriz. "It doesn't drain all the way. We can
only use one bathroom. We have to be careful with what we do. We can't
run multiple appliances at the same time."
Madriz tried to go through insurance to help pay for repairs. She ended
up in court, suing her carrier.
"It's undisputed that there was a drain line that was broken underneath
their kitchen that resulted in water seeping out under their foundation,
which caused damage to their foundation, their showers, and their
flooring," said Randy Weber, an attorney for the Madriz family. "Created
problems with backups in their toilets and sewer flies."
Weber represents the Madriz family. Last July, a civil jury sided with
the Madriz family in the insurance claims dispute, awarding them more
than $200,000.
The carrier filed an appeal. Since the case is still in court, Madriz
has not received a dime following the initial jury verdict. The carrier
argued its inspection did not find actual property damages caused by the
water overflow; therefore, coverage did not apply.
Weber believes a substantial change to state law will discourage
families like Madriz from taking their claims against insurers to court.
"It's unfair to the customer," said Weber. "It denies access to court.
It puts the burden on the homeowners."
In a special session last December, the legislature removed the right to
attorney fees in residential and property insurance lawsuits in what its
proponents of the legislation claim was an attempt to seek to stabilize
a volatile insurance market.
"What we don't want is the many, many thousands of cases, really garbage
litigation, that drives up the costs of everybody in this room, and
that's listening," explained Florida House Speaker Paul Renner in
February of 2023.
"Essential steps to keep the Florida property insurance industry alive
because we had seen six insolvencies last year," shared Mark Friedlander
with the Insurance Information Institute.
Friedlander believes two dozen more Florida-based carriers would have
dissolved without tort reform. The change made Florida the 41st state to
eliminate guaranteed rights to attorney fees.
"Big mess on your hands regarding lawsuits, legal defense costs for
insurers," said Friedlander.
He tells us Florida accounts for 9% of property insurance claims
nationally but accounts for roughly 80% of lawsuits against carriers.
Still, even with tort reform, he explains Floridians should expect
insurance premiums to remain relatively high.
"I have to deliver some bad news that in our determination, there is no
clear path to lower rates right now," said Friedlander.
He does see some light at the end of the tunnel.
He points to two factors. Five new insurance companies were approved to
write residential policies in Florida. The insurance of last resort in
the state, Citizens, moving its policyholders to private carriers.
"It's going to be prohibitive for most people to find a lawyer who will
take their case," said Weber. "It's going to lead to unbridled abuse of
Florida policyholders. It denies access to court."
Gorchow asked Madriz: "Would you even be able to make it this far if you
weren't guaranteed attorney fees?"
"No, absolutely not," Madriz replied.
Gorchow then followed that up by asking: "Would you not have even
considered suing?"
"We wouldn't have been able to," said Madriz. "The only option would
have been to sell the house and to leave."
Financial worries linger with her family case still not settled in
court. Unable to find an insurance company to ensure their family home,
their bank put them on forced-placed insurance. It raised their mortgage
by $1,000 a month.
"I don't know how many more months we have to stay here," said Madriz.
"We can t afford this."
In the days to come, we speak with insurance carrier insiders. One shows
us how some insurance companies manipulate software to underpay damages.
Another takes inside the strategy behind insurers pushing claims cases
to the courtroom.
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