Florida Insurance Policies and 'Right to Repair': Protecting Homeowners from Fraud After Hurricane Michael

One way Florida insurance companies are working to combat fraud and waste is by adding “right to repair” language to their policies.  After Hurricane Michael, there were hundreds of examples of roofers (mostly from out-of-town), charging double or triple the usual amount for a roof repair or replacement.  

As a result, some insurers have included “right to repair”/RTR in their policies, either as a mandatory feature or as an option with a discount.  This language gives the insurer the right to choose the repair contractor and pay them directly for work.  As the phrase implies, it gives the insurer the right to make repairs instead of paying you to make those repairs. Determine if this is in your policy as there are advantages and disadvantages.  

The advantages of RTR, aside from potential premium savings, include not having to find and engage a contractor.  The insurance company selects a qualified, licensed, and vetted contractor to do the repair work, so you don’t have to worry about it.  Additionally, the contractor is paid directly, so you don’t typically have to come out of pocket for your deductible until the work is finished.  This can help protect a homeowner from fraud and overbilling  (a huge problem after Hurricane Michael).  Finally, the insurance company guarantees the work, so if the contractor makes a mistake or does poor work, the insurance company has great leverage over the contractor to correct it.  If they won’t fix the problem, the insurance company must bring in someone else to properly do the work without any new claim or deductible.

There is one significant disadvantage: The homeowner loses quite a bit of control in the claims process.  A homeowner may wish to use his/her own contractor—someone with whom they are comfortable, or perhaps the original contractor who built the home.  If your policy contains RTR, your repair options are limited.

Be sure to talk with your agent to determine if your policy has the RTR feature and decide whether it’s right for you … and before filing a claim.