Many insurance policies contain coinsurance clauses which require policyholders to purchase an amount of insurance that accurately reflects the value of their insured property.   If less than a certain percentage of the accurate value is purchased, policyholders may not be able to fully recover in the event of a loss..

Coinsurance clauses can be confusing and often leave policyholders in distress. The good news for policyholders is that a little education can go a long way in this area of insurance law. If you understand the basic principle that you must maintain insurance on a certain percentage of the value of your property, then you will be fully insured when disaster strikes.

Continue Reading What Are Coinsurance Clauses and Do Courts Enforce Them?

Divorce is devastating. It can get worse when a couple has an insurance claim. Often, one spouse  refuses to participate in the claim process, leaving the one attempting to collect in turmoil with the insurance company. This was the case in a recent decision, Heike Blake v. First Home Ins. Co., No. 09-245 (Fla. 11th Cir. Ct. May 12, 2010.)

Continue Reading An Innocent Co-Insured Wins on Appeal

Coinsurance penalties are the last thing policyholders worry about following a loss. My experience has been that many field adjusters fortunately do not go through the costly calculations to accurately determine if a structure is underinsured. Thus, the penalties from being underinsured do not arise as often as they could.

Continue Reading Insurance Agents and Brokers Should Be Concerned Writing Risks with 100 Percent Coinsurance to Avoid Error and Omission Claims

As we have seen with the Katrina and Wilma litigation, courts will enforce the anticoncurrent causation clause, standard in most all risk and wind insurance policies. Many who suffered total losses could not fully recover because they did not have adequate flood insurance. Generally, policyholders with insufficient flood coverage limits fall into three categories:

  1. Those who did not purchase flood coverage.
  2. Those who underestimated the value of full replacement cost.
  3. Those correctly estimating replacement coverage but not able to purchase the amount through National Flood.


Continue Reading Is One Practical Answer to Many Coverage Disputes Involving Storm Surge Versus Wind to Raise National Flood Limits and Underwrite Insurance to Value Properly?

Insuring to value is an important aspect of insurance. Most policyholders, especially condominiums, face significant penalties for not purchasing full replacement value insurance coverage. If a policy has a coinsurance penalty, any loss benefit will be reduced if property is not insured to full value. The reduction can be significant.

Continue Reading Coinsurance Penalties Await Policyholders Who Do Not Insure To Full Value

The December issue of Florida Community Association Journal ran my article, "Directors and Officers Liability Coverage: What Every Board of Directors Member Needs to Know."  While I am certain that many think the only insurance law we practice is property insurance, our firm handles a variety of first and third party insurance coverage disputes and bad faith cases.

The important issue for Condominium Boards is that most Director and Officer liability policies exclude coverage for errors in obtaining proper insurance coverage. I think this is the largest potential error a board may face. The most prevalent issue is underinsurance.

Continue Reading Condominium Boards Especially Need To Insure To Value