Florida High Court Lets Stand Ruling on Damage Estimates in Supplemental Claims

The Florida Supreme Court on Thursday declined to consider a petition in a condominium insurance case, leaving in place conflicting rulings from Florida appeals courts.

The non-decision in American Coastal Insurance vs. Patios West One Condominium Association, stemming from a Hurricane Irma claim, means that, at least in part of the state, insureds do not always have to provide an additional damage estimate when filing a supplemental claim.

The decision gives insureds some flexibility on filing claims but it could continue to complicate claims handling for insurers, attorneys have said. For months, an insurer won’t have a clear idea of the amount of a competing damage amount, potentially making negotiations difficult.

Florida’s 3^rd District Court of Appeals in January 2024 sided with the Patios West condominium association on that question, and American Coastal petitioned the high court to review. The state’s 4^th District Court of Appeals has decided differently in another other case in recent years. And in a federal lawsuit, a federal appeals court last year agreed with the 3^rd District Court and found that state law does not mandate that supplemental claims include new estimates of damage amounts.

The question and conflict was somewhat muted by 2022 statutory changes that revised the timeline on supplemental and reopened claims. The law shortened the time allowed, from three years to one year for reopening claims, and to 18 months for supplemental claims. Fewer cases now involve supplemental and reopened claims.

The Patios West case litigation will now continue at the trial court level.