• 27
  • December
    2011

This year saw the decline and ultimate receivership of Homewise Proferred Insurance Company, a carrier who left many of its insureds in the cold and left to the assistance they may find in the Florida Insurance Guarantee Association ("FIGA"). This leaves many insureds with less insurance than they originally paid for from Homewise Preferred, and without the ability to recover fees from improperly denied claims. Homewise Preferred had spearheaded its efforts to argue against much of the coverage provided for sinkholes through a largely discredited theory. The "structural damage" argument that sinkholes are only covered if they cause damage of a particular nature has not gained any traction, and was seen by many as simply a way for Homewise Preferred to delay payments owed to its insureds until the company went under. While I cannot confirm this argument, there is no argument that there are a lot of frustrated insureds who paid for insurance they will never get.

As for next steps, we are looking to work with the FIGA representatives to obtain as much coverage we can for the damages they have. I do expect FIGA to surrender on the structural damage theory given the wholesale rejection of this argument by any judge I know who heard it. As one judge told a lawyer on this topic, "Counsel, if your insurance company does not like the language in its insurance policy, it's free to change it."

If you have questions about FIGA, Homewise Preferred, or other insurance issues, feel free to give us a call.