Imagine this. You have retained advice to help enforce your claim under your insurance. After a favorable evaluation and payment of the insurer's award, you will receive a renewal notice stating that the insurer chooses not to renew the insurance because "the risk no longer follows the warranty guidelines."
This is the situation many policyholders find themselves in after successfully disputing a claim against the insurer. The question is whether there is any possibility for those who are left without cover and cannot achieve a comparable policy.
Although it may theoretically be possible to take a non-renewable action against an insurer, it is still practically untested. Florida state law, however, contains several provisions that may provide a basis for filing this type of claim. An example, explained by attorney Larlin Bache of the Merlin Law Group, shows that "Florida law does not allow insurance companies to renew your insurance because you have lost a borehole loss." 1
An insurer may not renew any property insurance on the basis of filing a claim for loss of potholes if the sum of such payments is not equal to or exceeds the insurance limits for the insurance that is valid on the day of loss, for damage to property on the covered building, which is stated on the declaration page, or if the policyholder repaired the structure in accordance with the technical recommendations provided in accordance with subsection 2. on which a payment or insurance income was based. If the insurer pays such limits, it can renew the policy.
This is probably welcome news for those who are afraid of losing coverage due to the proximity to a sinkhole, but what about policyholders who have suffered damage due to a hurricane? Florida's statute 627.4133 (3) provides:
Claims on property insurance that are the result of a document from God may not be used as a cause for cancellation or renewal, unless the insurer can demonstrate, with damage frequency or otherwise, that the insured has failed to take measures that are reasonably necessary at the request of the insurer to prevent recurring damage to the insured property.
A similar ban on renewal due to a successful claim for water loss. Available in Florida Statute 627.4133 (6):
A single property insurance claim resulting from water damage may not be used as the sole cause of cancellation or renewal unless the insurer can demonstrate that the insured has failed to take reasonable action. by the insurer to prevent a future similar occurrence of damage to the insured property.
Regardless of whether policyholders have suffered hurricane loss, water loss or other covered loss under their insurance, it seems clear in the language of the law that insurers are prohibited from considering these claims as the sole justification in their decision not to renew an insurance policy. Policyholders should be careful when sending their insurer a notice of renewal immediately after a successful claim and should seek immediate legal assistance to best protect against the financial burdens that renewal may cause.
1 Larry Bache, ] Unless they pay insurance limits, Florida law does not allow insurance companies to renew your insurance because you have suffered a sinkhole loss, but this does not prevent carriers from (April 13, 2015).