The team at Noble Public Adjusting Group does our level best here on our blog to help Florida homeowners and commercial property owners understand insurance. They say knowledge is power and learning all you can about the insurance on your Florida property can be very empowering.
Today we will address the principle of indemnity. This should answer any questions Florida policyholders have when it comes to truly understanding how the principle of indemnity works. Of course, the language of insurance is often convoluted and confusing, but the main word you need to know is “matching.”
The Principle of Indemnity: After A Loss in Florida, Your Stuff Should Match!
One of the basic tenets of insurance is that you as a policyholder should not profit from a loss or damage but should be returned to the same financial position that existed before the loss or damage occurred. Stated in the simplest of terms: your Florida property after a loss should be restored to what you had before the loss.
This is what Florida law has to say about the principle of indemnity. Florida Statute 627.7011 prevents an insurer from attempting to depreciate the undamaged portion of the structure that needs to be replaced due to matching: “(3) In the event of a loss for which a dwelling or personal property is insured on the basis of replacement costs, the insurer shall pay the replacement cost without reservation or holdback of any depreciation in value, whether or not the insured replaces or repairs the dwelling or property.”
Where the problems start with an insurance claim–and the reason it is so important to have a public adjuster handle it for you–is that insurance companies will try their best not to bring you back to your pre-loss condition. Of course, they aren’t going to blatantly say that, but let’s look at a couple of examples.
A common claim we see after a hurricane in Florida is when policyholders have damage to their roofs. The insurance company inevitably will try to offer only a repair, even though the new shingles used do not match the old ones. Your roof should be a perfect match, or the entire roof should be replaced.
Another example is when a small section of a wall or ceiling is damaged. The insurance company may try to minimize the value arguing that only a small portion was impacted. However, the homeowner knows that repainting or repairing one section will be obvious and not perfect, and could decrease the value of the home. As a Florida homeowner, you should be entitled to have the entire home repainted or ceiling re-popcorned or repainting to ensure consistent paint and look throughout the property.
One major example of issues that arise with the principle of indemnity is when it comes to Florida hotels. It is normal for a hotel to have matching lamps, curtains, bedding, furniture, and art in each room. Say the hotel has a fire that destroys a large portion of the structure. The insurance company will most certainly try to wiggle out of this one. They will try to replace items piecemeal, items which do not match the decor of the hotel before the loss. This is unacceptable because it does not return the property back to its pre-loss condition, thus violating the insurance principle of indemnity.
As you can well see, having a public adjuster on your side is critical when it comes to returning your home or commercial property to its pre-loss condition. Noble Public Adjusting Group WILL make that happen. This is our wheelhouse, battling insurance companies to make sure they adhere to the principles of indemnity. We make sure property is restored to its pre-loss condition. If you have a loss in Florida and need a public adjuster to file your claim, let Noble be the one to handle it. You pay nothing upfront. We only receive payment once the insurance settlement is reached. And there won’t be a settlement until it is a proper one.
Noble has offices all across Florida. Our home office is in Panama City Beach. Call us today and let’s discuss the principles of indemnity. We can answer any questions you might have remaining after reading this blog post.
Noble Public Adjusting Group
107 Amar Place Suite 103
Panama City Beach (West End), FL 32413