People’s Trust Insurance Company trail-blazed the path for insurance companies across the state of Florida to start using what insurers call “Right to Repair” or “Option to Repair” clauses in homeowner’s insurance policies. Similar to auto insurance, an insurer has the option to elect to use one of their vendors or contractors to repair your damaged property in lieu of providing direct payment to the homeowner. This blog will discuss some potential risks homeowners should be aware of with these clauses.

Photo of a Damaged Fence

One of the most critical faults of any Right to Repair clause is that the contractor chosen by the insurers are often chosen because of their ability to cut repair costs!!

One of the most critical faults of any Right to Repair clause is that the contractor chosen by the insurers are often chosen because of their ability to cut repair costs. While this may not always be the case, insurers are more inclined to choose vendors who will perform your repairs for less. The end result is not favorable to homeowners who are often left with sloppy workmanship and inferior materials supporting the structure of their homes. When an insurer elects to invoke the Right to Repair provision, the homeowner is left at the mercy of the insurer. Those who choose not to opt-out of the Right to Repair program face a $10,000 limit to the coverage (commonly seen in Citizens insurance policies) offered by the insurance company. On the other hand, those who opt-in for the Right to Repair clause have no limit on their coverage.

This so-called “option” allows an insurer to unilaterally appoint their own contractor to repair your home. Fortunately, under Florida law, homeowners are protected from bad faith practices by their insurance company. The insurer is bound by law to complete the repairs within a reasonable time and manner. The insurer is held liable if an insurance company contractor performs substandard repairs. In this instance, a homeowner can sue the insurance company for breach of contract and seek a declaratory judgment. Going through a lawsuit with your insurer is no walk in the park and no homeowner needs any more frustration.

For this reason, it is critical to have an attorney who will represent your best interests and provide for the easiest path to put your home back in good repair. The attorneys at WindyLaw are highly experienced in the areas of property damage and bad faith claims. Contact our office to determine your best course of action in handling your claim.

To learn more about what the property damage law experts at Windy Law can do for you – call 844-849-0760 or email us at info@WindyLaw.com. All consultations are free of charge: No recovery – No fee!