Florida’s Citizens Property Insurance Board Approves Water Mitigation Estimate Review Program
Jul 19, 2016
A contested competitive solicitation for Florida’s Citizens Property Insurance Corporation’s (“Citizens'”) Water Mitigation Estimate Review Program (“Program”) was ultimately approved unanimously by the State-run insurer’s Board of Governors this morning, July 19, 2016.
With an estimated annual expenditure of $365,813, the three-year contract was awarded to Lynx Services, LLC. A contingency contract was also approved with Paul Davis Restoration. Budgeted as a claims adjusting expense for Citizens, the contract includes two optional one-year renewals.
With the Program, Citizens’ Claims Department is seeking to examine whether claim invoices associated with water damage are reasonable and adhere to industry standards by obtaining independent, objective expert reviews of water mitigation documents submitted to Citizens from water mitigation vendors.
These reviews will primarily involve contractor estimates of water mitigation and/or mold remediation to residential, commercial and specialty properties, with the purpose of assessing whether the estimate is reasonable, customary, and adheres to Institute of Inspection, Cleaning and Restoration Certification (IICRC) industry standards, practices and guidelines for water mitigation.
According to the scope of services outlined in Citizens’ March 2016 Request for Proposal, Lynx Services will conduct a comprehensive review of each estimate and report to Citizens, along with an explanation and justification of the findings.
Based on current practices and historical data over the last six months, Citizens identified approximately 460 potential Program assignments per month, but cautioned that claims figures could exceed 100,000 per month in the event of a catastrophic event. Thus, Lynx Services’ ability to scale resources in response to a sudden rise in claim volume was deciding factor in today’s contract award.
As reported by the Sun-Sentinel’s Ron Hurtibise, “Citizens released charts showing that non-weather-related water damage claims represented 56 percent of all claims in 2014. Statewide, 24 percent of such claims were represented by attorneys when Citizens first learned of them.
“Seventy-two percent came from Miami-Dade, Broward and Palm Beach counties. In that tri-county area, 93 percent of all claims were represented by attorneys. Of 562 suits filed against Citizens in December 2014, 98 percent originated from the tri-county area, and 91 percent involved non-weather-related water damage.
“Those statistics were blamed for rate increases in South Florida for 2016 while the rest of the state saw decreases. They were also cited to justify policy changes that would reduce homeowners’ ability to file water damage claims, seek reimbursement for losses and hire contractors to perform emergency repairs.”
To view an executive summary of today’s contract recommendation, click here.
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