Yes! As a property owner, you can always file a property damage claim. As long as the policy is in full force and effect, there is going to be coverage if covered loss occurs. Even if you are behind on mortgage payments, you can still file a claim. If an insurance company sends a notice of cancellation due to late payments and the policy expires after the date in the letter, you could still file a claim for a loss that occurs before the expiration. Generally, it’s going to be a case-by-case basis; whether or not late payments are a factor will depend on the situation. As such, you should consult with a lawyer when late payments for either your mortgage or home insurance are involved, and you want to file a claim. Being late on payments should never prevent you from filing a claim, although in some situations, they could prevent a bar to coverage.

Filing a property damage claim while being behind on payments can seem daunting, but it’s crucial to understand that insurance and mortgage are two separate entities. Your insurance policy is an agreement between you and your insurance company, independent of your mortgage lender. As such, delays in mortgage payments do not impact your right to file a claim for property damage.

However, the payout process might be a bit complex. Typically, the insurance company may issue payment to both you and your mortgage lender, requiring their endorsement on the check. This is because your mortgage lender has a vested interest in the property. If you’re behind on payments, the lender might apply the insurance money to your outstanding mortgage balance. In such situations, hiring skilled property damage attorneys can help navigate these complexities, ensuring your rights are preserved and the claim process is handled efficiently.

What Evidence Do I Need To Bring A Claim Against My Insurance Company For Bad Faith?

GET EVERYTHING IN WRITING! If an insurance company is acting in bad faith, any and all information is going to help in building a case against them. It is essential to get everything in writing, such as all communications and negotiations. Doing so will help your attorney make a case for bad faith. Bad faith cases are difficult to prove: There have not been that many successful bad faith cases in Florida involving first-party property. However, bad faith does happen. It is a great way to create leverage and force the carrier to make a coverage determination or decision in litigation within 60 days.

The best evidence for bad faith against an insurance carrier includes: evidence of the carrier ignoring you; or making errors in their correspondence, such as listing the wrong deed of laws or address; and doing things that are egregious and obvious that any non-biased party would think is inappropriate and unprofessional. Denying claims that should obviously be covered is a great example. Or, if a carrier offers a very low amount or nothing at all initially, and then is forced (either via litigation or appraisal) to pay substantially more, that could potentially be a bad faith claim.

I Received A Check From The Insurance Company For My Property Damage. I Believe It Is Underpaid. Can I Deposit The Check To Cover Current Expenses And Then File A First-Party Claim Against The Insurance Company?

Yes! However, if you received a check from the insurance company for property damage, you should use caution before using it if you plan on filing a claim afterward. This decision needs to be made on a case-by-case basis. Oftentimes, accepting an initial payment is not going to prejudice your ability to file a supplemental claim or prevent your right to file a lawsuit down the line. However, there are situations in which depositing a check could have ramifications, and you could lose the ability to receive more money for your claim. If the check comes with any kind of release, either on the check itself, on the back side of the check (we call this a “Poor-man’s release”), or with a letter attached, there could be legal affects to depositing a check. It’s always best to consult with a lawyer who practices first-party property in these situations.

My Insurance Company Keeps Reducing What They’re Going To Pay By Depreciating Items In My Claim. What Can I Do?

You want to make sure that your insurance policy pays for the “Replacement Cost Value” of damaged items. Otherwise, the cost(s) of depreciation will be dedicated to what the carrier is obligated to pay. In situations where insurance companies are depreciating items that shouldn’t be depreciated, or if you disagree with the amount they’re offering, we recommend contacting an attorney immediately to help you negotiate your claim. What the policy says is going to dictate what the carrier will pay.

The Insurance Company Will Only Pay According To Its Pricing Guidelines. They Won’t Match What Local Contractors Are Charging. What Can I Do?

If the insurance company won’t match what the local contractors are charging, the best thing to do is to let the insurance company know that you disagree. The insurance company has 90 days to make a claim’s determination. If they ask you for documentation to support your dispute of their pricing guidelines or for a sworn proof of loss, you have to comply. However, by law, they only have 90 days to make a claim’s determination. Therefore, when you disagree with an insurance company’s assessment of a loss, you have to let them know, give them any information that they’re asking for within reason, and contact an attorney who practices in this area to help guide you through this claim’s process.

My Home Is Very Badly Damaged And My Insurance Company Is Refusing To Pay Anything Upfront For The Contractor. I Don’t Have Cash To Advance Payment And They Won’t Start Until They Have Payment. Is There Anything I Can Do?

In most insurance policies, there’s a duty in the policy for an insured to mitigate damages. That means you have to take whatever means available to protect the property and stop the loss from becoming worse. That could mean mopping water out or putting a tarp on the roof. Anything that can be done to mitigate the damages will be looked at, but it must be reasonable and acceptable. For someone who is in this situation, it’s a good idea to contact a knowledgeable attorney. Experienced attorneys have a network of contractors and remediation companies that would work upfront in exchange for a letter of protection.

For more information on First-Party Insurance in Florida, a personalized case evaluation is your next best step. Get the information and legal answers you are seeking by calling (407) 915-5447 today.