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Deep Dive on Insurance Deductibles – by Cohen Law Group

Deep Dive on Insurance Deductibles – by Cohen Law Group

  • Posted: Feb 02, 2024
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In almost every homeowner’s insurance contract, there is a deductible that the homeowner is
required to pay before insurance proceeds become due and owing. Many times, the amount of the
deductible is dependent on whether the claim is a hurricane loss or a non-hurricane loss. Although
homeowners can obtain lower deductible amounts, usually by paying higher premiums, a vast
number of policies in Florida contain higher deductibles for hurricane losses than non-hurricane losses.
A very basic way of looking at the deductible, if the homeowner has a deductible of $5,000 on a
hurricane claim, the loss must have a value of more than that $5,000 before the insurance company is
required to pay any funds for the loss. If the value of the claim is below $5,000 that is typically referred
to as being below deductible. If the claim is valued at $6,000 then the insurance company will reduce
the payment by the $5,000 deductible, as the homeowner is responsible for paying this for the repairs,
and will make a payment to the homeowner for $1,000.

I often speak with homeowners who will receive a small payment for their damages that was
reduced by the deductible. Many homeowners are under the impression that because the amount paid
was reduced by the amount of the deductible, that the deductible has been paid. This is not the case. In
its simplest form, if the homeowner needs $20,000 for the damages and there is a $5,000 deductible,
then the homeowner will receive $15,000 and will be required to pay out of pocket the $5,000
deductible.

Florida statute 489.147 (2023) addresses prohibited property insurance practices. The statute
states that the “consumer is responsible for payment of any insurance deductible.” Subsection (3) states
that it is a felony of the third degree to pay, waive, or rebate any part of the insurance deductible with
the intent to injure, defraud, or deceive.

It is important for homeowners to understand how their policy works and specifically, what type
of costs the homeowner could be liable for when shopping for insurance. Many times, I believe, it is
better to pay a little extra in premium for a lower deductible than to be subject to much larger hurricane
deductibles.

Brandon Pharis, Esq.

Cohen Law Group

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Property damage claims encompass more than just the obvious cases. From water damage to fire damage and beyond,

Property damage claims encompass more than just the obvious cases. From water damage to fire damage and beyond,

  • Posted: Jan 25, 2024
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“Types of Property Damage Claims: Beyond the Obvious”

Property damage claims encompass more than just the obvious cases. From water damage to fire damage and beyond, we handle a wide range of property damage claims. If your property has been damaged, contact Maus Law Firm to discuss your options and seek the compensation you deserve.

WHY MAUS LAW FIRM?

 

Direct Contact with Experienced Attorneys

When you hire us, you speak one on one with our skilled Fort Lauderdale personal injury attorneys or property damage lawyers. We have decades of combined experience between us, and we make sure our clients understand their claim and the legal process.

 

We Accommodate Our Clients

No two clients are the same. Maus Law Firm wants to assist all of the clients who need our services, so we offer 24/7 phone service, free estimates, Spanish-speaking staff members, house calls, after hours appointments and more.

 

Results That Speak for Themselves

Our Fort Lauderdale injury lawyers handled thousands of accident and property damage claims and received settlements over $1 million. Our happy clients have left us wonderful reviews, and we strive for the best legal outcome for each case we represent.

Call For a Free Consultation   (855) 999-5297

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COAs must prepare operationally and financially for new legislation by Jim Weaver, Market President – First Federal Bank

COAs must prepare operationally and financially for new legislation by Jim Weaver, Market President – First Federal Bank

  • Posted: Jan 04, 2024
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 COAs must prepare budgets operationally and financially for new legislation by Jim Weaver, Market President – First Federal Bank

 

It would seem in today’s world the life of many Condo Associations are financially battling a 3–headed dragon known as Insurance, Milestone Inspections and Structural Integrity Reserve Studies. Alone, any one of these could result in a substantial financial blow to an Association but being impacted by all three could result in a financial crisis. To dissect this “dragon” from a Banker’s perspective, let’s look at a high–level overview of each of these:

 

Insurance:

Many Associations (and homeowners in general) are aware of the growing insurance crisis in the State of Florida and anticipated their premiums to increase but not to the levels many have experienced in 2023. After discussions with several property managers, most Associations were told in 2022 that they should expect increases in the neighborhood of 25% – 50% year over year. Although, at the time, these appeared shockingly high, the reality for many in 2023 has been increases of 100% to as much as 400% of their 2022 premiums. It is safe to say that even the most conservative of budgets and the best prepared Associations were not financially prepared for this hike. Many Associations have been forced to either finance their premiums through their insurance company or look to their bank partner for lines of credit to supplement what they had assumed would be sufficient reserves. While legislation is pending to assist with this problem, it is unlikely a return to the “old normal” will ever occur and financing of insurance premiums will become the “new norm”.

 

Milestone Inspections:

A milestone inspection is an on-site review of all the primary structural components within the condominium building(s). The inspections must be completed by a licensed architect or engineer. The initial Phase 1 inspection is a thorough visual examination. If no signs of “substantial structural deterioration” is found, no further investigation is needed. If there are signs of “substantial structural deterioration”, a Phase 2 milestone inspection must be performed. This inspection will be as limited or extensive as required to complete the investigation into the problem areas as identified in the Phase 1. If necessary, the inspector could require destructive testing on portions of the structure to complete the report. Upon completion of the Phase 2, the report should provide guidance for remediation/repair of distressed areas of the building.

Milestone Inspection reports are required for all condominiums three or more stories in height which aged 30 or more years by July 1, 2022; the initial milestone inspection must be completed by December 31, 2024. If the condominium reaches 30 years of age on or after July 1, 2022 and before December 31, 2024 the initial inspection must be completed before December 31, 2025. All others must have their initial inspections completed in the year in which the reach 30 years old and in all cases, every 10 years thereafter.

While the cost for these inspections may not present a financial crisis, the cost of needed repairs could. Well reserved and monitored Associations may have little or minor needs for additional funds, but others may have an immediate need to raise significant funds for near term required repairs.

 

Structural Integrity Reserve Study:

All condominium buildings of 3 stories or more are required to perform a Structural Integrity Reserve Study. This is performed to ensure proper availability of funds at the time of anticipated needed structural repairs or replacement as per the study. This study must cover the following:

Roof

Structure including load bearing walls and all primary structural members

Fire proofing and fire protection systems

Plumbing

Electrical Systems

Waterproofing and exterior painting

Windows and Exterior Doors

Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure to replace or maintain such item negatively affects the items listed above.

At a minimum the study must:

1) Identify each item of the condominium being visually inspected

2) State the estimated useful life and estimated replacement cost or deferred maintenance expense of each item of the property being visually inspected

3) Provide a funding reserve schedule with a recommended annual reserve amount that achieves the estimated replacement cost or deferred maintenance expense of each item.

As of December 31, 2024 it is mandated that Associations may not vote to waive or provide for reserves in an amount less than full funding for those items included within the Structural Integrity Reserve Study.

 

For many Associations who have historically partially funded or waived reserve funding, the requirement to fully fund for items included in the study will have an immediate and impactful shock to their financial structure moving forward. Depending upon the findings, Associations may need to raise large sums of reserves in a relatively short period of time. Fortunately for most Associations, the full impact will not be felt until the 2025 budget; however being proactive in 2024 will help prepare for the inevitable impact.

Disclosure: The commentary above should not be considered a legal opinion and does not encompass the full requirements of the legislation of Senate Bill 154 as discussed above. It is strongly suggested that any Association confer with their Attorney and/or CPA to understand the full requirements and impact of the legislation well in advance of any deadlines specified in the bill.

Authored by:

Jim Weaver

Market President

First Federal Bank*

Weaverj@ffbf.com

*First Federal Bank is available to serve financial needs of their local markets. Visit FFBF.com/locator to find the nearest location.

 

Find First Federal Bank on the Members Directory

First Federal Bank is a community-based bank offering consumer and commercial banking solutions, services, and loans through banking offices in Florida’s Panhandle, North Central and East Florida, and coastal South Carolina.

Mortgage, SBA and USDA customers are served through lending offices across the Southeast and Midwest.

First Federal is headquartered in Lake City, Florida with assets totaling over $3.6 billion. First Federal has received a “5-Star, Superior” financial rating from BauerFinancial, Inc., of Coral Gables, Fla. for more than two decades and was recognized by Newsweek as “Best Small Bank in Florida” in 2020 and 2021. For more information, visit http://www.ffbf.com.

 

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Do you have a residential or commercial property in Florida, Georgia, Texas, North Carolina or South Carolina? The public adjusters at Sarasohn & Company are experts at maximizing your insurance claim recovery. We don’t get paid unless you do!

Do you have a residential or commercial property in Florida, Georgia, Texas, North Carolina or South Carolina? The public adjusters at Sarasohn & Company are experts at maximizing your insurance claim recovery. We don’t get paid unless you do!

  • Posted: Oct 04, 2023
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 Sarasohn & Company can assist in preparing your claim, guiding you through the claim process and helping to achieve the most favorable settlement. In addition to numerous state licenses, Stephen Sarasohn has held the nationally recognized designation of Senior Professional Public Adjuster since 1988.

Adjusters working for the insurance companies are obligated to treat all claimants fairly and impartially. However, they are paid by the insurance companies for their efforts. The state recognizes that you, the policyholder, are entitled to equal representation and you may retain the services of an expert adjuster to assist in the claim process.

Building Claims

In order to properly adjust any claim for damage to a structure, it is important to prepare a detailed repair estimate.  Sarasohn & Company will do that on your behalf.  Whenever necessary, we will employ the services of architects, engineers, contractors and other independent experts at no additional cost to you.

Full consideration is given to the provisions of your policy, as well as applicable statutes and case law, so as to maximize the recovery. This includes consideration of depreciation, coinsurance, code upgrades, deductibles and any other factors important to a successful adjustment.  Sarasohn & Company is also equipped to provide project management for the reconstruction process.  Project management is a field used in large construction projects to coordinate the various aspects of the repairs. This service is provided at no additional cost.

 

Personal Property Losses

All insurance policies require the submission of a complete inventory of both the damaged and undamaged personal property.  This includes machinery, trade fixtures, appliances, merchandise inventory, household furnishings, clothing and all other movable property insured under the policy.  This coverage also covers improvements and betterments on tenants’ policies, which can be treated several ways for claims purposes.

Sarasohn & Company has on its staff, experienced personnel who are capable of filling these requirements.   In addition to listing the property involved, our experts will calculate the replacement cost and actual cash value of each item as well as the repair cost when appropriate.  We will determine salvage value, if any, and help arrange for protection of the property from further damage, as required by the policy.  Our services can be helpful in documenting your tax loss, if any.

 

Loss of Income Claims

One of the most complex aspects of your claim involves calculating the loss of income you will suffer as a direct result of damage to real or personal property.  Sarasohn’s long term experience has helped to develop a team of forensic accountants who have proven to be outstanding in their ability to adjust claims in a way most favorable to the policyholder.  The services of CPA’s and tax attorneys are engaged when necessary, at no additional cost to you.

One of the questions that usually arise in a loss of income claim involves the continuation of payroll during the period of restoration.  It is extremely important that a method be established as soon as possible after the loss, to resolve this aspect of the claim.  Sarasohn & Company, with its years of experience will assist you with these important decisions.  Extra expense coverage can be used creatively to make up for insufficient property coverage, should that scenario exist.

Stephen Sarasohn SPPA
stephensarasohn@gmail.com
Public Adjusters since 1924
www.sarasohn.net
561-368-5000 office
561-866-3589 cell

 

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As with each year, we hope for a season with no hurricanes coming our way. However, it is safe to expect that there may be at least one such event in the coming months and, at the start of the hurricane season, it is prudent to plan for that possibility.

As with each year, we hope for a season with no hurricanes coming our way. However, it is safe to expect that there may be at least one such event in the coming months and, at the start of the hurricane season, it is prudent to plan for that possibility.

  • Posted: Sep 01, 2023
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If the Board desires additional information and contact information for obtaining the free inspection and analysis of the condition of the community, please contact Kaye Bender Rembaum.  The Firm wishes all a safe and peaceful hurricane season!

 Some of the planning steps that should be considered include the following:

  1. Create a Disaster Plan and establish off-site contact information and meeting points.
  2. Establish Evacuation Routes and conduct building or community evacuation drills in the weeks leading up to and once the hurricane season has begun.
  3. Verify Emergency Generators & Supplies operate and that fuel, flashlights, batteries, water and other necessities are available.
  4. Backup Computer Files and store information offsite, in case computers crash or systems fail.
  5. Secure the Premises – Make preparations for routine lockdown of the building(s) or other facilities as a storm approaches, so the building(s) is(are) secure during the storm and safe from vandalism or looting if a hurricane strikes.
  6. List of Owners & Employees – Have on hand a current, hard-copy reference list complete with the names of all property owners, emergency contact numbers and details of second residence addresses, as well as a list of all association employees, with full contact details.
  7. Photograph or Video Premises – Keep a visual record through video or photographs of premises, facilities and buildings to facilitate damage assessment and speed damage claims in a storm aftermath.  Consider having the premises evaluated by appropriate professionals to establish the conditions prior to any hurricane event. (see further details on this item below)
  8. Building and Facilities Plans – Make sure a complete set of building or community plans are readily available for consultation by first-responders, utilities workers and insurance adjusters following a storm.
  9. Insurance Policies & Agent Details – Be sure all insurance policies are current and coverage is adequate for community property, facilities and common areas and compliant with State Law; full contact details for insurance companies and agents should be readily available in the event of a storm.
  10. Bank Account Details & Signatories – Keep handy a list of all bank account numbers, branch locations and authorized association signatories, and make contingency plans for back-up signatories in case evacuation or relocation becomes necessary.
  11. Mitigation of Damages – In the immediate aftermath of a storm, take the necessary steps to mitigate damages – this includes “Drying-In,” which is the placement of tarps on openings in the roof and plywood over blown out doors and windows, and “Drying-Out,” which is the removal of wet carpet and drywall to prevent the growth of mold.
  12. Debris Removal – Have a plan for speedy removal of debris by maintenance staff, outside contractors or civic public works employees, should a hurricane topple trees and leave debris in its wake.

With respect to item 7 above, Kaye Bender Rembaum has become aware of at least one service provider that will bring in engineering professionals to make a physical inspection of the entire community to assess the conditions and establish a record for all such conditions prior to any storm.  The assessment will also identify conditions that may have resulted from Hurricane Irma from 2017, for which claims were not made or even found and may still be claimed.  In many instances, conditions of significant damage may not be readily apparent to the layperson, but to a qualified professional, very obvious.  Quite often, such an inspection can result in substantial additional insurance claims for the association to recover.  It is not unusual for an insurance carrier to reject initial claims following a major storm, citing to maintenance or pre-existing conditions as the basis for the denial.  The team of experts performing the assessment has assisted several communities overcome such rejections and ultimately receive additional settlement proceeds to make further repairs to the premises.  While there is no guaranty of such a result, without making such an assessment, the board will never know and certainly have no further recovery.  Most importantly, this inspection and assessment is undertaken at no charge to the association by this company, and with no obligation to the association!

 

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If your residential, commercial, or industrial properties have property damage, our Insurance Claims Attorneys can help with everything from A-Z on hurricane claims. by Cohen Law Group.

If your residential, commercial, or industrial properties have property damage, our Insurance Claims Attorneys can help with everything from A-Z on hurricane claims. by Cohen Law Group.

  • Posted: Sep 01, 2023
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Cohen Law Group would like to remind all Property Managers and CAMs that our firm has handled thousands and thousands of property damage insurance claims in Florida. We have decades of experience handling hurricane claims that have been denied, delayed, or reduced.

If you are unsure if your property sustained damage as a result of Hurricane Idalia you should ask for an inspection by a qualified contractor, estimator or building inspector to assess whether hurricane-force winds damaged or compromised the roofing system and building envelope. Many companies offer this initial inspection free of charge. Given the complexities of a large loss claim, consider consulting with an attorney experienced in handling commercial insurance claims for condominiums and homeowner’s associations.

 

We can connect you with top professionals in the industry to evaluate hurricane damage and we can assist you with handling an insurance claim the right way– today.

 

Here’s more information on how we can help you:

Cohen Law Group is certified through the state of Florida for Property Manager and CAM Continuing Education Credits/Classes. We have a one to three-hour CE class called “A CAMs/Property Managers Guide to Property Damage Insurance Claims”

We can schedule a free lunch and learn with your CAMs and will provide an overview of our suggestions and strategies as well as some examples of our vast experience with Residential Property Damage and Commercial Large Loss.

If your residential, commercial, or industrial properties have property damage, our Insurance Claims Attorneys can help with everything from A-Z on hurricane claims.

Please call us today at 850-318-7474 

Here are some tips for property owners

immediately after a hurricane:

You have 1 year from the date of loss to report the claim. Please do not hesitate in reporting the claim immediately as you are aware there is storm damage. Believing the damages are below your deductible is not a defense to this and the insurance company will use every day you wait against you later.

Thoroughly document all emergency repairs before and after they are completed. Insurance companies will try to get out of paying for these services if they believe they do not have sufficient information.

If you are displaced from your home or property, please keep all invoices and receipts showing costs that you incur. Likewise, if you have any damaged personal property, please take photographs of it before you throw it away.

Insurance companies cannot cancel your policy while you have an open claim. You should speak to an attorney to understand your rights. Insurance companies will routinely request that you sign documents and give statements to them that can and will be used against you later.

489.147 Prohibited property insurance practices.—

(1) As used in this section, the term:

(a) “Prohibited advertisement” means any written or electronic communication by a contractor which encourages, instructs, or induces a consumer to contact a contractor or public adjuster for the purpose of making an insurance claim for roof damage, if such communication does not state in a font size of at least 12 points and at least half as large as the largest font size used in the communication that:

1. The consumer is responsible for payment of any insurance deductible;

2. It is insurance fraud punishable as a felony of the third degree for a contractor to knowingly or willfully, and with intent to injure, defraud, or deceive, pay, waive, or rebate all or part of an insurance deductible applicable to payment to the contractor for repairs to a property covered by a property insurance policy; and

3. It is insurance fraud punishable as a felony of the third degree to intentionally file an insurance claim containing any false, incomplete, or misleading information.

Harvey V. Cohen, President

Harvey Cohen Signature

     

At Cohen Law Group, It’s About Justice!

It’s more than a slogan, it’s our firm’s mantra. We are zealous in protecting your rights. We offer 24-hour availability through our answering service. Call us today.

(850)318-7474

Members of  SFPMA – https://sfpma.com/listing/cohen-law-group/

 

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STORM DAMAGE CLAIMS FOR YOUR CONDO AND HOA PROPERTIES! by SFPMA

STORM DAMAGE CLAIMS FOR YOUR CONDO AND HOA PROPERTIES! by SFPMA

  • Posted: Aug 29, 2023
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STORM DAMAGE CLAIMS FOR YOUR CONDO AND HOA PROPERTIES!

SFPMA & Members are ready to Handle Storm Damage & Claims for Condo and HOA Properties!

These Trusted Members are; Legal Firms, Public Adjusters, Roofing Engineering & Service Companies that work with you on Solutions to Storm Related Damage.

Use the Form On our website..Contact us Today!

 

Protect Your Condo & HOA This Hurricane Season!

The Florida hurricane season runs from June 1 through November 30. According to the National Oceanic and Atmospheric Administration (NOOA), this year is predicted to be another above-normal season.

The Hurricane season starts on June 1 but it’s never too early to prepare. Damage from a hurricane can be costly for all businesses and can pose hazards for you and your employees. Fortunately, there are ways that you can fortify your business against a hurricane to minimize losses and reduce risks for workers.

As part of “Planning Ahead” for a Disaster, the SBA encourages you to consider taking these simple steps to prepare: Assess your risk; Create a plan, Execute your plan. Statistics show that 25% of small businesses don’t re-open after a disaster. Visit the SBA’s Prepare for Emergencies website to learn more about how to prepare and recover if a disaster strikes.

NOOA officials also encourage consumers to take the following steps:

  • Visit Ready.gov and Listo.gov for useful and valuable disaster preparation resources including checklists and templates for your business and your home.
  • Download the FEMA app to sign-up for a variety of alerts and to access preparedness information.
  • Consider purchasing flood insurance.

Visit the National Hurricane Center’s website at hurricanes.gov throughout the season to stay current on watches and warnings.

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Be prepared to say NO when an insurance company offers you a low ball offer!

Be prepared to say NO when an insurance company offers you a low ball offer!

  • Posted: Aug 29, 2023
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Maus Law Firm

954-784-6310

Mr. Maus is a Florida native practicing law in South Florida since 1993. He currently limits his practice to the areas of insurance related claims – personal injury and homeowner property damage claims and commercial litigation. Mr. Maus has tried over 60 jury trials to verdict and has litigated claims throughout Florida.

Delays and Partial Payouts — Challenging the Patience of Florida Policyholders

Insurers often engage in strategies meant to challenge the patience of the policyholder and thereby force the policyholder to accept a lower payout, or to simply resign themselves to no payout.  For example, an insurer may excessively delay the processing of the claim, arguing that the delays are due to ongoing investigation of the damage.  By doing so, they hope that you — under pressure to fix the roof and no doubt overwhelmed by the proceedings— will simply move forward without waiting for the insurer and potentially give up on dealing with the hassle they created.

Partial payouts — in which the policyholder is offered an inadequate sum, but a sum nonetheless — are another way in which insurers try to goad policyholders into accepting less than what they’re owed under the policy at issue.

It’s worth noting that Florida law may entitle policyholders to bring an independent “bad faith” action against the insurer (which could even lead to punitive damages) if the insurer failed to investigate and pay the claim in a timely manner, or failed to evaluate the claim fairly under the circumstances. Simply put, if there was no valid justification for the denial, then our Fort Lauderdale roof damage attorneys may be able to sue and recover damages pursuant to a bad faith claim.

Coverage Exclusion as the Basis for Denial

In homeowner’s insurance policies, payouts for roof damage may be limited due to coverage exclusions.

For example, a roof damage claim may be covered if it is caused by a thunderstorm, but not if it is caused by a hurricane.

Such strict categorization for roof damage coverage often leads to a dispute, particularly if the event leading up to the roof damage at-issue is somewhat muddled — if your roof is damaged in a hurricane (which is covered by the policy), the insurer might claim that it was not actually the wind force of the hurricane itself, but a falling tree that caused the roof damage.  You can successfully counter this argument by showing how the hurricane directly caused the tree to fall on your roof.

Contact Our Fort Lauderdale Roof Damage Attorneys for a Free Consultation

Here at Maus Law Firm, our South Florida property damage attorneys have decades of experience representing the interests of policyholders whose real estate property has been harmed, whether due to a storm, fire, or some other unexpected event — including those which cause damage to the roof structure.

We understand the unique challenges that are faced by policyholders who are attempting to secure an adequate payout through submitting a roof damage claim, and are standing by to assist such policyholders in pursuing litigation against their insurers.

Ready to speak to a property damage lawyer at our firm?  Call us at 1-855-999-5297 or complete an intake form through our website to schedule a free and confidential consultation today.

Maus Law Firm Members of SFPMA
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