The Florida Supreme Court recently decided not to review a case involving condominium insurance, leaving some important questions unanswered. This case, American Coastal Insurance vs. Patios West One Condominium Association, arose from a claim related to Hurricane Irma. The court’s choice not to intervene means that in certain parts of Florida, people filing supplemental claims may not need to provide an additional estimate of damages.
This ruling offers some relief to policyholders, allowing them more flexibility when submitting claims. However, it also raises concerns for insurance companies and their legal teams. Without a clear estimate of damages, insurers may struggle to negotiate settlements effectively.
The 3rd District Court of Appeals had previously sided with the Patios West condominium association on this issue, while the 4th District Court of Appeals had reached a different conclusion in another case. Additionally, a federal appeals court recently supported the 3rd District’s position, asserting that Florida law does not require new damage estimates for supplemental claims.
Changes to state law in 2022 had already altered the landscape for such claims, reducing the time allowed for reopening claims from three years to one year, and for supplemental claims from two years to 18 months. As a result, there are now fewer cases involving these types of claims.
The litigation surrounding the Patios West case will continue in the trial courts, where further developments are expected.