Fla. Justices Close Extra Damages Avenue For Policyholders

By Jeff Sistrunk (January 22, 2021, 9:35 PM EST) -- Florida's highest court has shut down a route for policyholders embroiled in property insurance disputes to recover amounts exceeding their policy limits, ruling Thursday in a case involving state-backed Citizens Insurance Corp. that such "consequential damages" can only be sought in actions alleging bad faith and not mere breach of contract suits.

The Florida Supreme Court's unanimous opinion quashed an intermediate state appeals panel's 2019 ruling allowing a trio of apartment building owners to pursue lost rent from Citizens Insurance Corp. based on the insurer's alleged breach of policy obligations to properly adjust and pay their claim for damage due to Hurricane...

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