Florida’s Citizens Property Insurance Claims Committee To Review Water Damage Claims Litigation Data, Managed Repair Program Details
Jun 12, 2017
Water damage claims litigation statistics to be reported at the upcoming Citizens Property Insurance (“Citizens”) Claims Committee meeting on June 15, 2017 do not bode well for South Florida, with 93 percent of incoming residential property lawsuits arising from Miami-Dade (65 percent), Broward (23 percent) or Palm Beach (5 percent) counties during the period of January through April of 2017. According to Citizens, this represents a 41 percent increase from last year at this same time.
The leading dispute in 50 percent of new incoming residential property lawsuits is a disagreement over scope and pricing issues, Citizens said, adding that policyholders are represented at First Notice of Loss in 83 percent of those incoming residential property lawsuits.
The leading cause of loss in these new lawsuits remains water damage, which represents 47 percent of incoming lawsuits in 2017 (versus 55 percent in 2016). Citizens said it continues to experience an increase in the frequency of assignment of benefits matters that now represent 40 percent of new incoming residential property lawsuits, as compared to 34 percent of incoming lawsuits in 2016, and 21 percent in 2015.
To read the Litigated Claims Update, click here.
To stem the tide, Citizens is rapidly moving toward launching its water damage claims managed repair program, the operating plan for which the Claims Committee also will review this week. To view the details of the program, click here.
Because water damage claims are expected to increase over the next five years, Citizens will also be recommending a $3.4 million budget increase for its water damage claims mitigation estimate review program, which is designed to determine whether water mitigation invoices submitted to Citizens on non-weather water losses to residential, commercial and specialty properties are reasonable, customary and adhere to established industry standards, practices and guidelines.
The Claims Committee will also be reviewing and voting on independent adjusting services vendors for litigated and non-litigated claims.
To review the meeting materials, which include Special Investigative Unit and Recovery cases of interest, along with a summary of updates to Citizens’ Catastrophe claims management model, click here.
Chaired by Gary Aubuchon, the Claims Committee will meet via teleconference on June 15 from 1 p.m. to 2:30 p.m. (ET).
Interested parties can listen to the meeting by calling 1.866.361.7525 | Code: 521.967.6193#.
Should you have any questions or comments, please contact Colodny Fass.
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