FPCA Homeowners Division: Robin Westcott’s thoughts for proceeding with the discussion items from working group

Florida Property and Casualty Association Homeowners Division Members:

A meeting was held today, July 29, 2013 by Robin Westcott where her thoughts for proceeding with the discussion items from her working group were discussed.  The working group will meet again tomorrow to discuss these talking points, and some additional ideas.  Please let me know of any landmines you see on this list – we can discuss more on our next FPCA call.  Please direct questions and feedback to Katie Webb (kwebb@cftlaw.com).

Ms. Westcott plans to reduce these ideas to a bullet list format – where she identifies the problem then bullet points suggested solutions – from what she said it sounds like she plans to propose the following:

 Problem:

• Contractor/ remediators using assignments of benefits to game repairs and payments from insurers

Solutions:

• Require a permit to be pulled on reimbursable repair work
• Require directions to pay rather than assignments for non-emergency repairs
• Require a “cooling off” period – for water damage 72 hours, for roofing and other repairs 7 days (with an exception for immediate repairs to stop further damage)
• Create a price gouging reference point (e.g. 20% above average costs from the last year)
• If an assignment of benefits is allowed, limit the assignment to Dwelling A coverage
• Require water remediators to be licensed
• If a right to repair option exists in a policy and the company chooses to exercise that option, the company must warranty the repairs.

 

Problem:  

• Divergent court opinions on the appropriate use of EUO’s

Solutions:

• Specify an acceptable number of days for notification of an EUO
• Specify an acceptable distance for the location of an EUO from the insured’s residence, unless otherwise agreed
• Codify case law on abusive EUO practices

 

Problem:

• Companies using numerous recorded statements as a “gotcha” tactic

Solution:

• Create a limitation on the number of recorded statements an insurer can take of a single person

 

Problem:  

• Mediation and other ADR processes are currently not effective at disposing of claim disputes

Solutions:

• Scrap the existing procedures and create a new ADR process which will operation much like court ordered mediation during litigation. There will be an outline of certain information that must be exchanged prior to the mediation and penalties for failure to comply.