Court Ruling Boosts Policyholders in Citizens Insurance Case

In a pivotal ruling impacting the insurance industry, Citizens Property Insurance Corporation encountered a setback as Florida’s Third District Court of Appeal upheld a jury's verdict favoring policyholders, Sandra and Carlos Blanco. The dispute involved a water damage claim from November 2015 that Citizens denied, citing damages from excluded policy conditions. This decision reinforces the challenges of regulatory compliance and claims management that insurers face.

The jury awarded the Blancos $61,017, countering Citizens' argument that the damage stemmed from prolonged water seepage. This ruling centered on the "anti-concurrent cause" clause, which can empower insurers to reject claims tied to excluded causes, such as extended seepage, even when simultaneously occurring covered events happen. Such outcomes emphasize the complexities of underwriting and policy enforcement.

Despite Citizens' appeal to reverse the jury’s decision, the appellate court found insufficient evidence provided by Citizens, noting an incomplete trial transcript hindered their ability to challenge the jury's conclusions. The court also dismissed Citizens' concerns regarding repair cost admissibility, even though the Blancos no longer owned the property. This legal victory for policyholders serves as a reminder for carriers to diligently present evidence while carefully navigating claim disputes and risk management.