Florida Insurance Claim Lawyer Blog

Buying and owning a home, for many of us, is the most significant investment we will make in our lives. It will likely also be one of the costliest ones too.

Therefore, when we make that investment we want to make sure that the investment won't turn sour. It is of paramount importance that the home we purchased is strong and sturdy enough to protect us from a significant hurricane.

South Florida's building codes were significantly re-vamped following Hurricane Andrew in 1992 and tweaked again following the active hurricane seasons in 2004 and 2005. The local building codes were revised to ensure that our homes would remain standing in the event of a hurricane strike.

But these building code advancements did not come without added costs to our homes. In fact, some of the advancements added to the costs of building a home to withstand a hurricane.

As such, our Florida legislators devised a statutory scheme that would permit a home owner to secure discounts for their homeowners insurance coverage if they home met certain criteria.

Indeed, our legislators enacted Florida Statute § 627.711 which requires property insurers to clearly identify and explain discounts available on the policies they sell if a property meets hurricane mitigation requirements.

The State of Florida, however, has discontinued the popular program that aided property owners to secure discounts on their homeowners insurance policy. But many homeowners may still qualify for the discounts even without the state's assistance.

Here are some tips to follow if you think your insurance company revoked legitimate discounts for strengthening your home against hurricanes.

1. Compare Forms. If your first inspection was done prior to 2009, and the second one was done after 2009, then that will likely explain the issue. The forms recently changed.

2. Keep Documentation. Keep copies of all documentation regarding any and all work performed.

3. Contact the Original Inspector. The inspector that performed the original inspection may be able to assist you in securing the discount today.

4. Use a licensed contractor to perform any work required to strengthen your home.

These tips will help you in making your home stronger. This will help you in the event of a significant hurricane striking Florida. If the work is done properly, it may even qualify you for additional insurance discounts on your insurance premium.

So be sure to check with your insurance company and ask them what discounts are applied and how you can go about securing those discounts.

This should come as no surprise. Especially to those of you who have ever had to deal with your insurance company in submitting a claim.

Insurance companies are putting profits before service and people.

Yet despite record profits, reform to many laws pertaining to insurance claims, insurance rates continue to go up for all hard working Floridians.

A recent report reveals the sad state of affairs for many insurance companies.

The report illustrates how the insurance industry is making money by delaying claims and how it has shifted from a service industry to an industry that is driven purely by profit.

Unlike many other businesses, the insurance industry is bound by law to act in good faith with its customers. Because of their protective role in the lives of ordinary citizens, insurers have long operated as semi-public trusts.

But since the mid-1990s, a new profit-hungry model, combined with weak regulation, has upended that ancient social contract.

Claims have been converted into a money-making process for the insurance companies to the detriment of their policy holders. The change started when insurance companies altered their claims handling procedures. Rather than adjusting claims the traditional way, which gave claims managers wide latitude to serve customers, insurers embraced a computer-driven method that produced purposefully low offers to policy holders.

The low offers has had the effect of allowing insurance companies to either settle claims much cheaper or force unnecessary and costly litigation costs for both the insured and the insurance companies.

The objective was to make claims so expensive and so time-consuming that many policy holders would simply just fold, walk away settle for pennies on the dollar as to the actual value of their claim while many lawyers would start refusing to help policy holders in need.

Delay, deny, defend, has become the new battle cry for the insurance industry.

Continue reading "Insurance Companies Profit by Delaying Claims and Shorting Customers" »

Under Florida law, any person may bring a civil action against an insurer when such person is damaged by the insurer's failure to attempt "[i]n good faith to settle claims when, under all circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for his interest." See F. S. Sec. 624.155(1)(b)(1); see also Fla. Std. Jury Instr. (Civ) 3.1.

A. Historical Context & Evolution of Bad Faith Claims

Until the 20th Century, actions for breaches of insurance contracts were treated the same as any other breach of contract action, and damages were generally limited to those contemplated by the parties at the time they entered into the contract. With the passage of time, however, insurance contracts began to be viewed as distinguishable from other types of contracts because they came to "occupy a unique institutional role" in modern society and affected a large number of people whose rates were dependent upon the acts of not only themselves but also the acts of other insureds.

Consequently, courts began to recognize that carriers owed a duty to the insured to act in the insured's best interest rather than their own. In recognition of the fact that courts uniformly have acknowledged that carriers owed their insured a duty of good faith and fair dealing, this duty evolved into the requirement that good faith be exercised or bad faith be avoided.

In Florida, third party bad faith actions were recognized as early as 1938. Florida, however, is in the minority in holding that an action against an insurer for bad faith failure to settle sounds in contract rather than tort. Most states treat such an action as a tort claim or a combination of tort and contract. Third party bad faith claims are recognized under both Florida common law, and Florida statute. First party bad faith claims, however, are entirely a creature of the legislature.

In Florida, there is neither a "set off" defense nor an affirmative defense of comparative bad faith. Similarly, while evidence of negligence may be considered by the jury as it may bear on the question of bad faith, a cause of action based solely on negligence, which does not rise to the level of bad faith, does not lie.

In sum, in determining whether an insurer has "acted fairly and honestly towards its insured and with due regard for his interest," the Florida Supreme Court applies the "totality of the circumstances" standard, and not "fairly debatable" standard. Each case is determined on its own facts, and the question of the insurer's failure to act in good faith with due regard for the interests of the insured is for the jury.

B. Claims Delay

A recent report reveals how insurance companies are profiting from delaying claims. Indeed, the National Association of Insurance Commissioners (NAIC) reported that the highest number of complaints coming from policy holders is unnecessary claim delays and claim denials.

Call us today if you think your insurance company is not handling your claim in bad faith.

The past few years has seen the real estate market collapse. Home values have declined by greater than 50% in many markets throughout Florida, and especially here in South Florida.

Yet despite those declining values, many home owners have seen their home insurance rates rise in recent years. Despite the decrease in home values, many insurance companies are requiring homeowners to carry greater values in home insurance than the home is actually worth in today's market.

For instance, a home may be worth say $200,000 in today's market. But many insurance companies, including Citizens, may require that homeowner to purchase insurance regarding the replacement value of that home that is far greater than the home is worth. Such values may even be as high as $300,000 despite the fact that the home is only worth say $200,000 in today's market.

It seems that the insurance companies are greatly exaggerating the cost to replace a home following a disaster. Especially in light of our declining real market.

The only conclusion that can be reached is that insurance companies are using the increased replacement costs values as a back door method to secure greater rate increases above and beyond the rate increases that were already approved just a few months ago. The below news report video discusses that in greater detail.

Not surprisingly, the insurance companies see nothing wrong with requiring home owners to purchase the replacement value coverage for their homes at values that are in some instances twice as much as what the home is actually worth. They deem such rate increases as "necessary and proper."

Of course, the fact that Florida has not been hit by a hurricane in a record 6 straight years did not lessen the need for insurance companies to further raise insurance rates. Their reserves are teetering on dangerously low levels that could spill heartache and frustration for many homeowners should Florida experience another hurricane season like the ones in 2004 and 2005.

Continue reading "Home Insurance Prices Keep Going Up Despite the Decline in Property Values" »

As we have discussed before, most insurance policies have several conditions that the insured must satisfy before an insured can file a lawsuit against the insurance company. One of the most common condition is having the insured sit for what is known as an Examination Under Oath (EUO.)

An EUO is a sworn statement given by someone who has made an insurance claim. Insurance companies typically use this procedure as part of their claims handling process and investigation. But they also employ an EUO if they suspect fraud, or if they are considering disputing coverage before going into litigation.

EUO's could be tape recorded, or even video taped. But it will certainly be transcribed, and you will be sworn to tell the truth. The sworn testimony that you give will also be used by the insurance company to serve their interest, and against you, if possible.

EUO's could also often times be very intimidating. Part of that intimidation may be to employ the use of overly aggressive defense lawyer in an effort to intimidate the insured into dropping their insurance claim.

One of the most common methods used in intimidating an insured is when the lawyer hired by the insurance company insists on conducting the EUO at their office as opposed to a mutually convenient time and place.

This is critical because in the insurance company friendly ruling in Goldman v. State Farm, 660 So.2d 300, (Fla. 4th DCA 1995), the Fourth District Court of Appeal specifically held that an insured's failure to sit for an EUO could jeopardize their insurance claim. But the court also opined that the EUO must take place at, "a mutually convenient time and place as contemplated by the policy."

Therefore, and absent specific language in the insurance policy dictating specifically where the EUO must take place, it is incumbent upon the parties to mutually agree upon the location of the EUO. This is bolstered by the fact that said position was specifically set forth in the Goldman ruling.

Continue reading "Examinations Under Oath Must Take Place at a Mutually Convenient Time and Place as Contemplated by the Insurance Policy" »

Every insurance policy written in Florida contains numerous conditions that are imposed on the policy holder/insured. The policy holder must adhere to those conditions precedent before it can file a lawsuit against the insurance company. Those conditions are present so as to permit an insurance company to properly and timely investigate a claim.

The conditions typically involve providing "immediate" notice to an insurance company of the loss. An insured will typically need to allow the insurance company an opportunity to inspect the loss. The insured may be required to sit for an examination under oath, and may also be required to submit a sworn proof of loss. These are just but a few examples of the many conditions precedent found in an insurance policy.

Sometimes an insured may rush to court and file a lawsuit when the conditions precedent may have not all been satisfied. Or the lawsuit may have been filed after a delay in notifying the insurance company of the loss.

If you are in doubt regarding your legal rights under the insurance policy, or you are in need of assistance with your insurance claim, please feel free to call us today to discuss your claim.

Nonetheless, insurance companies typically attack such lawsuits on grounds that the insured failed to follow all the terms and conditions found in the insurance policy prior to filing the lawsuit.

Under Florida law, where an insured delayed in notifying an insurer of a potential claim, the insured must rebut the presumption that the delay prejudiced the insurer. Tiedtke v. Fid. & Cas. Co. of New York, 222 So.2d 206, 209 (Fla. 1969); XL Ins. America, Inc. v. Ortiz, 673 F. Supp. 2d 1331 (S.D. Fla. 2009); Keenan Hopkins Schmidt and Stowell Contractors, Inc. v. Continental Cas. Co., 653 F. Supp. 2d 1255 (M.D. 2009).

Therefore, Florida law provides that the failure to give timely notice creates a rebuttable presumption of prejudice to the insurer. However, that presumption may be overcome by the introduction of evidence tending to show that the insurer was in fact not prejudiced by the late notice.

Simply stated, although prejudice is presumed, this does not preclude recovery if the insured can show an actual lack of prejudice. National Gypsum Co. v. Travelers Indem. Co., 417 So. 2d 254 (Fla. 1982). Put differently, such presumption that the Defendant was prejudiced is overcome by a showing that the insurer was not deprived of an opportunity to investigate the facts of the incident at issue. Bankers Ins. Co. v. Macias, 475 So.2d 1216 (Fla. 1985).

In Haiman v. Federal Insurance Co., 798 So.2d 811 (Fla. 4th DCA 2001), the Fourth District Court of Appeal stated:

A total failure to comply with policy provisions made a prerequisite to suit under the policy may constitute a breach precluding recovery from the insurer as a matter of law. If, however, the insured cooperates to some degree or provides an explanation for its noncompliance, a fact question is presented for resolution by a jury.

As set forth above, if a policy holder cooperates to "some degree" or "provides an explanation for its noncompliance", then the policy holder's claim may not be barred as a matter of law.

On the other hand, if there was no cooperation of any kind then the claim may be barred all together. Take, for example, the case of Edwards v. State Farm, 64 So.3d 730 (Fla. 3d 2011). In Edwards, the Third District Court of Appeal concluded that: (1) the insurance company made requests for specific, basic documents relating to the loss that were never provided; (2) Edwards knew that, on numerous occasions, the insurance company requested Edwards submit to an examination under oath at a mutually convenient place and time, and he did not; and (3) Edwards never submitted any documents relating to the costs he alleges he expended to repair his roof.

In that case, the Court threw out Edwards's claim for failing to comply with all the conditions precedent, and failing to even cooperate to "some degree" and failing to "provide an explanation for its noncompliance."

Continue reading "Is Your Insurance Claim Barred If You Fail To Comply With All Of The Conditions Set Forth In Your Insurance Policy Prior To Filing a Lawsuit?" »

Last year our Florida legislators decided to restrict the ability of many small businesses in the State of Florida from earning a decent wage, and restricting their ability to market their services. Our legislators sided with the insurance companies over hard working Floridians still feeling the effects of the worst recession of our generation.

On the other hand, our legislators made it easier for insurance companies to raise the rates of your homeowners policy despite the unprecedented run of 6 straight years without a hurricane strike in the State of Florida. Indeed, insurance rates are going up for Floridians despite a record 6 Hurricane free years.

Insurance companies are raising rates, and our legislators have made it easier for them to raise rates, because insurance companies have complained for years that public adjusters are simply getting too much money from the insurance companies when they submit a claim as opposed to what they pay when a homeowner submits a claim without the assistance of a public adjuster.

As part of a sweeping law that Florida's legislators passed, public adjusters who represent Citizens policy holders are prohibited from getting paid for their services until Citizens actually makes an offer. The law also limits what public adjusters can charge after that initial offered is received.

Public adjusters are hired by policyholders to prepare, file or complete claims. The new law restricts fees for public adjusters representing Citizens policyholders to 10 percent over the original amount the insurer offered for a claim.

A lawsuit was recently filed challenging that law. One of the reasons for the challenge is that the law in question is vague. It is vague because the law does not define an "original offer." However, Citizens has apparently taken the position it is a written offer after the insurer has adjusted and investigated the claim.

In other words, the law does not permit public adjusters to get paid for performing inherent and necessary tasks until Citizens has made a nebulous, vague and undefined "original offer."

The same law also restricts and caps the fees a public adjuster can charge for their services on claims involving Citizens. But those restrictions on fees do not apply to claims against other insurance companies.

Continue reading "Lawsuit Filed Challenging the Constitutionality of Laws Passed by Florida Legislators that Help Insurance Companies Raise the Rates of Homeowners Insurance While Preventing Small Businesses from Competing in the Marketplace to Aid Homeowners in Need" »

Virtually all first-party property insurance policies contain an "appraisal" clause whereby each party, insured, and insurer appoint a "disinterested" or "impartial" appraiser who, in turn, selects an umpire to resolve issues of the amount of loss.

The appraisal process is an alternative dispute resolution intended to resolve disputes without the need for litigation. Indeed, Florida courts have concluded that appraisal clauses are "preferred, as they provide a mechanism for prompt resolution of claims and discourage the filing of needless lawsuits."

A recent case decided by Florida's First District Court of Appeal affirmed the validity of appraisals as an alternative dispute resolution system to avoid unnecessary litigation.

In First Protective Insurance Company v. Erika Hess, the insured filed a claim with her insurance company after her home was burglarized. In response, the insurance company demanded appraisal. The appraisal panel issued an award to the insured, but failed to include an itemization of the personal property and the corresponding values.

As such, the insurance company deducted prior payments and the policy deductible from the amounts awarded while also applying policy limitations for jewelry, cash and other property when calculating the net payment. All of those deductions totaled $78,317.22. As such, and despite an appraisal award of $107,311.58, the insured received a check for only $28,994.36. Not surprisingly, the insured filed a complaint against the insurance company for the difference.

The trial court ruled in the insured's favor. In so ruling, the trial court concluded as follows:

Items such as the deductible and prior payments may be excluded from the amount owed without the Court having to hear extrinsic evidence from the appraisers as to the basis for the award and the reasons for the amounts awarded. The same is not true for deductions based upon special limits of liability. In those cases, the Court would, by necessity, be required to hear testimony from the members of the appraisal panel (and perhaps others who participated in the appraisal process) as to the basis for the award to make these deductions. The Court agrees with Plaintiff that this sort of inquiry behind the appraisal award is not contemplated by the policy, nor permitted by Florida law.

The trial court's ruling was recently affirmed by the First District Court of Appeal. In affirming the trial court, the appellate court concluded that allowing the insurance company to conduct an evidentiary hearing to determine the value of each item would undermine the entire purpose of the alternative dispute resolution of appraisal. After the fact inquiries into an appraisal award would defeat the whole purpose of appraisal and render it meaningless while allowing the insurance companies to flood the court system with lawsuits if they did not agree with the result of the appraisal.

Continue reading "Florida Court of Appeal Affirms the Use of Appraisal in First Party Insurance Claims" »

As we noted in this blog, Governor Rick Scott signed into law a piece of legislation that changes many aspects of property damage claims, and that also makes it easier for insurance companies to raise your property insurance rates in the years to come.

Well, the time has come. Insurance companies are raising your rates.

The rates are going up despite the insurance companies getting their wish list enacted by an insurance friendly Governor to help them make consumer claims more difficult to make, but yet those same insurance companies reap the benefits of higher insurance premiums.

State insurance regulators approved more than two dozen home insurance rate hikes ranging from 6 to 34 percent.

American Integrity Insurance Co. of Florida, which has 102,091 home insurance policies statewide and 13,575 in Broward, Palm Beach and Miami-Dade counties, received 14 percent increases for two types of homeowner insurance policies it offers. Security First Insurance, with 119,205 policies statewide and 21,025 in South Florida, received a 9 percent increase for its homeowners multi-peril policies. And Universal Insurance Co. of North America, which has 81,834 policies statewide and 11,420 in South Florida, received a 12 percent increase for its homeowner property insurance policies.

And then there is Citizens. The sate's insurer of last resort. State regulators approved an average 6 percent statewide rate hike for Citizens Property Insurance's homeowners policies - which include coverage for homes, condominiums and renters - and 9 percent for rental and vacation home policies.

Premiums for most parts of South Florida will increase next year by up to 10 percent. Fortunately, this is significantly lower than the proposed 25% rate increase Citizens was hoping to get.

Why Are Insurance Rates Going Up?

Despite a record 6 straight years without a hurricane strike in Florida, and the passing of sweeping insurance reforms, insurance companies are still raising rates at a blistering pace.

Insurance companies are of course companies driven by profit. They also have to manage their books to ensure that enough money is in reserve in the event a major hurricane does strike Florida.

However, regulators and consumer advocates have said that Florida insurers could bolster their claims-paying reserves during hurricane-free years if they spent less of the premiums they collect on contractors, sometimes affiliated companies, to manage daily operations; if they lowered other overhead costs such as advertising; or issued smaller dividends.

Continue reading "Home Insurance Rates are Rising Despite a Record 6 Hurricane Free Years and Recently Enacted Legislation that was Supposed to Make Insurance More Affordable for Floridians" »

The chill is back in the air. That means those old space heaters make a return to keep many warm on these cold nights and mornings.

With the drop in temperatures comes the possibility of an increase in fires for both homeowners and business owners alike. Space heaters are a popular and inexpensive heating option during the cold days of winter. However, they often times also play a role in fire losses during the cold dry days of winter too.

While space heater fires are not common, they could be fatal. Recently, a 62 year old woman was found dead, and the authorities attributed the cause of death to a fire that was started by a space heater.

If you're going to use a space heater, make sure it is fully operational. Check the space heater for frayed wires before turning it on. Never overload a plug socket or use an extension cord for power. And most importantly, never use the portable heating device overnight or unattended.

Here are some other safety tips to consider when using a space heater:

- When buying a heater, look for one that has been tested and labeled by a nationally recognized testing company, such as, Underwriter's Laboratories Inc. (UL).

- Keep the heater three feet away from drapes, furniture or other flammable materials. Place the heater on a level surface away from areas where someone might bump it and knock it over.

- Keep electric heaters away from water. Never use them near a sink or in the bathroom.

Additionally, circuit overloads have also proven to be common winter weather mishaps as homeowners increase their use of electricity, lights and heat during the holidays.

Our firm often times sees an increase in large residential and commercial fires during the winter months that could have easily been prevented.

The 2011 hurricane season was the third busiest on record, with 19 named storms. Of those storms, 7 of them turned into hurricanes, and 3 of them turned in major hurricanes measured at Cat 3 or stronger.

Indeed, it has been a very fortuities few years for South Florida. History has shown us that past hurricane seasons as busy as this one typically results in at least two named storms and making landfall. For instance, researching records back to 1900 revealed that in five previous seasons with 10 or more hurricanes, at least two named storms made landfall somewhere in the United States. And so far this season, we have seen 19 named storms, none of which has made landfall in Florida.

The hurricane season began with Arlene, which developed on June 29 in the Gulf of Mexico, and made landfall near Veracruz, causing 25 fatalities, and at least $223 million in damage.

Irene was the lone hurricane to hit the United States in 2011, and the first one to do so since Ike struck southeast Texas in 2008. Irene was also the most significant tropical cyclone to strike the Northeast since Hurricane Bob in 1991.

As this hurricane season comes to a close, it appears as though Florida again dodged potential catastrophe in that no significant storm made landfall this year.

Since hurricane tracking began, South Florida has never previously gone 6 straight years without getting struck by a hurricane. The last hurricane to strike South Florida was Wilma back in October 2005. The last tropical storm to hit South Florida was Bonnie back in July of 2010.

Continue reading "The 2011 Hurricane Season is Quietly Coming to an End" »

Frying turkeys during the holidays has recently become very popular all over the country, including right here in South Florida.

The popularity has to do with a number of reasons, including the reduced time needed to cook a turkey in a deep fryer, versus other conventional methods such as an oven or a rotisserie grill.

But another reason it has become so popular, quite simply, is because fried turkey tastes great.

However, with the increased popularity of turkey fryers over the past several years also comes increased risk. Indeed, twice as many cooking related house fires occur on Thanksgiving than on any other day of the year. Not only that, but the fires on Thanksgiving are typically deadlier and more expensive.

While most Americans are counting their blessings, firefighters are putting out nearly 4,300 blazes. On a normal day, 23% of fires take place in residences, but on Thanksgiving, that percentage jumps to 35%. The vast majority of these fires--83%--start on top of the stove or in the oven. These blazes claim more lives than fires on an average day, and cause 25% more property damage.

Additionally, while frying turkeys has become much more prevalent during Thanksgiving, so have the fires associated with turkey fryers. Part of the reason for the increased amount of fires associated with frying a turkey is the equipment used to fry the turkey. The large fryers use gallons of cooking oil, which boils at 325 degrees Fahrenheit. If too much oil is added it can easily boil over--or the fryers can tip--creating the perfect catalyst for a holiday fire that could cause extensive damage, or even death.

From 1998 to 2007, there were 138 reported incidents involving turkey fryers, according to the US Consumer Product Safety Commission. These resulted in 36 injuries and nearly $8 million in property loss.

If you chose to fry a turkey during Thanksgiving, or the holidays, here are some safety tips to follow:

• Only use a container specifically designed to fry turkeys and follow the manufacturer's directions for use.
• Turkey frying is an outdoor activity only. Set the fryer a safe distance away from any building, especially homes and sheds. Do not use a fryer on a wooden deck or inside a garage.
• Never leave a turkey fryer unattended. Remember that you have flammable oil heating over an open flame with no temperature control so don't take any chances.
• Use an oil with a high smoke point like peanut, canola, or safflower oils.
• Before using oil in a fryer, measure how much you will need by placing the turkey in the fryer and adding water until it is 1 to 2 inches over the turkey. Remove the turkey and mark the water line. Use this line to indicate how much oil to use. Remove the water and dry the fryer thoroughly before filling it with oil to the designated line.
• Always use a defrosted turkey. Lower and raise the turkey slowly so the hot oil will not splash.
• The cook should wear gloves, long sleeves and an apron to avoid burns from splashing oil.
• Be sure to keep an all-purpose fire extinguisher near by. Never attempt to put out a grease fire with water!
• Once the turkey is done, turn off the heat source to let the oil cool.
• Be sure to keep kids and pets away from the fryer since the oil will remain hot for hours after use.

Continue reading "Frying a Turkey? Here are Some Tips to Safely Enjoy a Fried Turkey" »

The chances of South Florida getting hit by a hurricane in November is less than 5%.

Historically, only about 5% of all Atlantic tropical storm activity occurs after the 1st of November. On average, one tropical storm forms in November every other year, and a hurricane forms in November every five years.

There have been six recorded major hurricanes in November. They were Hurricane Michelle of 2001 (Cat. 4, 140 mph); Hurricane Lenny of 1999 (Cat 4, 150 mph); Hurricane Kate of 1985 (Cat 3, 120 mph); Hurricane Greta of 1956 (Cat 4, 140 mph); Hurricane 10 of 1932 (Cat 4, 135 mph); and Hurricane 7 of 1912 (Cat 3, 115 mph).

The most extraordinary November hurricane was "Wrong-Way Lenny", which hit the northern Leeward Islands as a strong Category 4 hurricane with 155 mph winds on November 17-18, 1999. Lenny was the first storm to have an extended west-to-east track across the central and eastern Caribbean Sea in the 135-year Atlantic tropical cyclone record, and was the strongest November hurricane on record.

Hurricane Gordon was the deadliest November hurricane. It claimed 1122 lives in Haiti when it passed just west of the country as a tropical storm on November 13, 1994. Lenny claimed six lives in Costa Rica, five in the Dominican Republic, two in Jamaica, two in Cuba, and eight in Florida. Property damage to the United States was estimated at $400 million (1994 dollars), and was severe in Haiti and Cuba as well.

Three November hurricanes have hit the U.S.-an unnamed 1916 Category 1 hurricane that hit the Florida Keys, an unnamed 1925 Category 1 hurricane that struck Sarasota, Florida, and Hurricane Kate, which struck the Florida Panhandle on November 22, 1985.

Continue reading "November Hurricanes Are Extremely Rare" »

Hurricane Rina has quickly strengthened into a hurricane off the coast of Honduras. Rina is a category 1 storm with top winds of 75 miles per hour.

Forecasters are predicting that the storm could become a major hurricane with winds topping 111 miles per hour by late Tuesday.

The models largely agree that Hurricane Rina will not make it out of the Caribbean, and instead turn around and move back to the south beyond the 5-day forecast period.

In the unlikely event it were to get pulled northward, the odds are that it would be coupled with a mid-latitude weather system strong enough to seriously damage its tropical characteristics.

Rina's formation brings this year's tally of named storms to seventeen, making it the 7th busiest Atlantic hurricane season since record keeping began in 1851. Only 2005, 1933, 1995, 1887, 2010, and 1969 had more named storms.

However, 2011 has had an unusually low percentage of its named storms reach hurricane strength. Only 35% of this year's named storms, including Rina, have made it to hurricane strength (six), and normally 55 - 60% of all named storms intensify to hurricane strength in the Atlantic.

Hurricane Rina is a rare October hurricane. However, history has demonstrated that hurricanes in October can still cause extensive damage. Just back in 2005, for instance, Hurricane Wilma caused extensive damage to South Florida, and was one of the strongest hurricanes ever recorded on record. It became the 3rd costliest hurricane in U.S. history causing over $20 billion in damages in South Florida.

Continue reading "Hurricane Rina is Gaining Strength and Could be a Major Hurricane by Tuesday" »

What is an Examination Under Oath?

Most insurance policies have several conditions that the insured must satisfy before an insured can file a lawsuit against the insurance company, and that is part of the insurance company's duty to investigate. One of the most common condition is having the insured sit for what is known as an Examination Under Oath (EUO.)

An EUO is a sworn statement given by someone who has made a claim due to water damage, wind damage, hurricane, roof claim, lightening, car accident, or some other form of risk that is insured. Insurance companies typically use this procedure as part of their claims handling process and investigation. But they also employ an EUO if they suspect fraud, or if they are considering disputing coverage before going into litigation.

It should be noted that the EUO could be tape recorded, or even video taped. But it will certainly be transcribed, and you will be sworn to tell the truth. The sworn testimony that you give will also be used by the insurance company to serve their interest, and against you, if possible.

Who has to sit and attend an EUO?

Every insurance policy has a "named insured." Therefore, the "named insured" has to appear for the EUO. However, in some instances, the "named insured" may not be the person with the most knowledge as to the claim of loss. As such, the insurance company will require the person with the most knowledge of the loss to appear in addition to the "named insured."

So for instance, the home could be owned by your elderly mother. Your elderly mother is the "named insured" since she owns the home. If the insurance policy is written in a broad enough context, it could be possible that you will also have to appear for an EUO even though you don't own the home, and you are not listed as "named insured." The reason being is that you may the best person with the most knowledge as to the loss in question.

At the EUO, an insurance company is limited in scope to the types of questions that can asked. In fact, a recent Florida appellate court ruling admonished insurance companies for their practices of attempting to intimidate insured's during EUO's when the insured appears without an attorney. Nonetheless, the insurance company will no doubt ask questions about your background, family history, educational history, employment history, claim history (other insurance claims), financial history (bankruptcies and the like), military history, criminal convictions, and credit history. This is all before they ask you one question about your claim. Most EUOs take several hours, and some could even take several days.

What if you don't cooperate?

Most insurance policies contain what is known as a "cooperation clause." What that means is that the named insured has a duty to cooperate with the insurance company during its investigation of the claim. And one of those requirements is often times to sit for an EUO.

Should the named insured fail to appear for scheduled EUO, then the insurance company could deny the claim. The reason being is that the named insured failed to comply with its duty to cooperate with the insurance company when it failed to sit for an EUO.

Additionally, just showing up for an EUO is not enough. The insurance company may require the named insured to bring documents such as tax returns, checking account information and the like to the EUO. The failure to bring those documents may also serve as grounds to deny the claim.

Moreover, an insured's failure to answer certain questions during an EUO may also serve as the basis for a denial of the claim by the insurance company. However, a recent Florida appellate court case made it understood that an insurance company should not intimidate an insured during an EUO to the point that an insured feels forced to walk out of an EUO.

Should You be worried?

Yes, you should worry if your insurance company asks you for an EUO. The insurance company is not going to hire a lawyer to interrogate you because they want to help you substantiate your claim. They suspect fraud or are collecting information, from you, in order to deny your claim. You have the right to have your own lawyer at an EUO. However, you are not required to have your own attorney. In fact, and as this recent case from the Third District Court of Appeal makes abundantly clear, the insurance company will be delighted if you appear without a lawyer. If you do not have an attorney, we recommend you consult with an attorney before attending any EUO.

Continue reading "The Importance of the Examination Under Oath (EUO) and How it Impacts your Insurance Claim" »