In Univ. Prop. & Cas. Ins. Co. v. Qureshi, No. 4D2023-1338 (Fla. 4th DCA July 24, 2024), the Fourth District reversed a final judgment awarding damages based on an insurer’s failure to pay for water leak damage, holding that the insureds were erroneously permitted to present evidence of estimated repair costs when the repairs had not been made. The Court held that the plain language of the policy and section 627.7011(3)(a), Fla. Stat., requires payment for repairs “as work is performed and expenses are incurred.” The Court also declined to apply the doctrine of prevention of performance, which it described as “the circular argument that [an insurer’s] failure to tender payment for the estimated damages prevented the insureds from performing the repair work.” Instead, it certified conflict with the Third District’s decision in Citizens Prop. Ins. Co. v. Tio, 304 So. 3d 1278 (Fla. 3d DCA 2020), on which Judge Warner relied in a dissenting opinion. Thus, in the Fourth District, it appears that insureds cannot seek damages for estimated property repair costs unless the repairs were actually made or costs incurred. However, in the Third District, such damages may be available. We recommend objecting to an insured’s request for estimated repair costs damages in all districts when those damages have not been made or costs incurred. View the opinion here.
