In a magazine worthy of legal review, Michael Cassel has written an excellent review of Florida’s changing law regarding compensation costs and actual cash value. Explore the application of fair cash value versus replacement cost value in Florida property insurance claimsis a must read for anyone who wants a complete understanding of Florida’s somewhat complex and changing treatment of compensation cost recovery versus actual cash value.
Cassel explains his analysis in part of his introduction:
In this exploration, we will consider the terms of the standard and generally uniform loss management provisions, specifically regarding the definitions of the replacement cost value and the actual cash value of losses, and look at both the history of such terms and more recent state court applications. In doing so, we will seek to reconcile the various inconsistencies in existing precedents, both between and within districts, examine aspects related to the implementation of the provision on which there are no opinions, and provide potential solutions to an issue that has quickly become the most disputed subject matter in first party property disputes.
The magazine is full of subtle analyzes of issues that are not often discussed. For example, he discussed the phrase “work done:”;
It must be noted that the loss regulation provision does not require that the repairs must be completed before compensation is due, only that “work is performed”. Most contractors will enter into agreements that prescribe draws and dividends as the work is carried out. If the insured enters into a repair agreement, the insured has incurred the costs and as such should be able to recover the amount of each deduction as long as work is in progress. This will prevent the insured from having to get out of pocket and seek full compensation as the average insured is unlikely to have the necessary income to make payments without the help of their insurance company. For this reason, the insured must know exactly what is covered before he becomes liable to a contractor, which means that it is of utmost importance for the carrier to appropriately adjust the extent of the damage at the beginning of the damage.
When I talked to Michael about his paper and got permission to publish it, I also told him to put a good word to his wife, Hillary Cassel, who leads a seat in the Florida House of Representatives. Hillary is a policyholder’s attorney. In a previous life, she worked in a political position in Tallahassee. She personally helped me get around the Florida Capitol building to testify to changes in Florida’s property insurance laws when all types of access restrictions were in place under Covid. She is a policyholder advocate and knows her policies. I wholeheartedly support Hilliard Cassel.
Here is a link to Hillary Cassel’s campaign.
Nothing is impossible, the word itself says “I am possible”!