Florida insurance dispute involves mobile home coverage
One 83-year-old Florida mobile home owner found his homeowner’s insurance policy terminated just 10 days before the hurricane season was to begin. The homeowner was in a state of disbelief and depressed about his current circumstances. Fortunately, after inquiries were made the coverage was reinstated.
Citizens Property Insurance Corp. is state-run and considered a last-resort insurer for many homeowners. However, many homeowners do find themselves being denied coverage or forced to live with reduced protection concerning their policies. This has sometimes come about due to Citizens changing internal rules.
Individuals living near Boynton Beach may have little other choice than to seek coverage through Citizens. A number of other private insurers will not cover these individuals. The problem with Citizens is that the coverage often is inadequate and may only offer half of the market value in the event a homeowner needs to rebuild.
As many of those residing there are retired individuals living on a fixed income, they need coverage or are put in risk of losing all that they have. One Florida state representative stated that lawmakers may look into Citizens’ rules – especially when it comes to company guidelines that do not accord with state laws.
There is concern that little attention is paid concerning insurance issues related to mobile homes. Unlike other homes, mobile homes are depreciable. This means that homeowners may only receive “actual cash value” rather than replacement value under certain policies if something happens to the home.
Homeowner insurance disputes often involve disagreements over property values and homeowners often find themselves in need of experienced insurance claims attorneys when these disputes arise. In a highly regulated area such as insurance, companies do need to have some accountability for decisions.
Source: Insurance News, “Citizens Accused Of Coming Up Short On Covering Mobile Homes,” Charles Elmore, May 31, 2014
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