According to Citizens Prop. Ins. Corp. v. Arias, No. 3D23-0895 (Fla. 3d DCA 2024), a first-party insurance case, the trial court initially imposed limitations on the carrier’s ability to raise policy defenses such as wear and tear and long-term seepage and leakage as to a water loss. The trial court found that due to an inspection prior to the carrier renewing of the policy, such inspection limited the carrier to policy defenses after the home inspection. Additionally, the trial court found that water damage occurring before it turned into long-term seepage and leakage was covered. However, the 3rd District Court of Appeal reversed the decision, finding no authority in Florida law or the insurance policy supporting such limitations on the coverage defenses asserted by the carrier.
Benefits to Carriers
- 4-point inspections and renewal inspections can aid in defending claims rather than giving a blueprint to insureds on what damages to claim
- Carriers are not limited in raising policy defenses should it renew a policy where the property had damages
- Arias provides a roadmap and authority in defending against similar arguments raised by plaintiffs/insureds
Impact
- When a claim comes in, check with underwriting as to any 4-point or renewal inspections
- Always get the application from underwriting to verify that the plaintiff was truthful about prior losses
- If a claim goes into litigation, make sure counsel is aware of said inspections to aid in defenses
- With current changes to Florida Rules of Civil Procedure and disclosures, be aware that such information will likely be discoverable
Questions? Contact us at KDFirstParty@kubickidraper.com