FAQs

What does Uninsured/Underinsured Motorist (UM) Coverage pay for?

Uninsured/Underinsured Motorist (UM) Coverage pays for "accidental" bodily injury, sickness, or disease, including death, when an insured sustains such injury as the result of an automobile accident and the legally obligated party does not have Bodily Injury Coverage, or does not have sufficient limits to satisfy the injury claim. This includes both economic (actual medical bills and other out of pocket expenses) as well as non-economic (pain and suffering) damages.

Reference: Florida Statute 627.727

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What does Bodily Injury Liability (BI) pay for?

Bodily Injury Liability Insurance (BI) is the part of an automobile insurance policy that pays for economic (actual medical and funeral) and non-economic (pain and suffering) damages when someone suffers serious and permanent injury or death in an accident involving an automobile.

In order for this portion of the policy to respond, the insured must be legally responsible for the accident. The insurance company will pay for injuries up to the limits of the policy and provide legal representation for the insured if they are sued.

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What does Medical Payments (MED PAY) pay for?

Medical Payments coverage is for payment of reasonable expenses incurred for necessary medical and funeral services because of bodily injury caused by an auto accident and sustained by an insured. Generally, the expenses must be incurred within 3 years of the accident. However, the courts have required payment when a child is injured but it is medically determined that the treatment should be delayed, for example dental work or plastic surgery.

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Is my neighbor's policy responsible for damage done by his/her tree to my property?

In a coverage dispute (such as a fallen tree) involving two property owners, there are variables in determining which policy will cover a loss.

If a neighbor's insurance company does not believe their insured is "legally liable" or negligent, they will not pay to have the tree removed. This is usually the case if a tree, or limbs fall due to a peril, such as fire, lighting or wind.

If the tree fell because of neglect or age, and a neighbor was aware of this, the homeowner may be able to show that the neighbor was negligent and their policy should pay. If there is no negligence on the part of the neighbor, then the homeowner can file the claim under their policy.

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Can an insurance company non-renew for a sinkhole claim?

Florida law prohibits an insurance company from non-renewing any property insurance policy for filing a claim on a partial loss caused by sinkhole damage or clay shrinkage, unless: 1.) The total of such payments exceeds the current policy limits of coverage for property damage, or 2.) the insured has not repaired the structure in accordance with the engineering recommendations upon which any payment or policy proceeds were based.

Reference: Florida Statute 627.707(2)

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Can an insurance company non-renew a homeowners policy based on information in a credit report?

As of January 1, 2004, insurance companies cannot non-renew a homeowners policy solely based on information from a credit report, for having no credit history or for having an adverse credit history due to medical bills. Reference: Florida Statute 626.9741 and Florida Administrative Code 69B-125.004

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What can I do if my mortgage company fails to pay my insurance premium?

A lender/mortgage company is required to reimburse the property owner for any penalty or fees imposed by the insurer and paid by the property owner to reinstate the policy, if a lender fails to timely pay the premium. If payment is not over 90 days overdue, the insurer must reinstate the insurance policy retroactive to the date of cancellation. If the premium payment is more than 90 days overdue, or if the insurer refuses to reinstate the policy, the lender/mortgage company must pay the difference between the cost of the previous.

If a mortgage company fails to pay a premium for the renewal of a policy, check with the insurance company to be certain they mailed the renewal bill to the mortgage company listed on the policy and to the insured. The bill should have been mailed 45 days prior to the renewal date.

If the insurance company cannot document the mailing of the required billing renewal notice to the insured and the mortgage company, then the company will need to send a replacement bill and continue coverage until the proper 45 days notice is sent. The insured should verify that all policy information is current and accurate.

If the company sent both notices as required and the mortgage company failed to pay in a timely manner, the insurance company must reinstate coverage with no lapse if the premium is received within 90 days of the renewal date.

For further information regarding this type of situation call the Department of Financial Services at 1-800-848-3792.

Reference: Florida Statute 501.137(3)(b) and 627.4133
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