Trinidad v. Florida Peninsula Insurance Company, 36 Fla. L. Weekly D1081a (Fla. 3DCA 2011)
Florida Overhead and Profit Claims
Florida Insurance Law
In Trinidad v. Florida Peninsula Insurance Company, 36 Fla. L. Weekly D1081a (Fla. 3DCA 2011), the Florida Third District Court of Appeal, held that a homeowner was not entitled to overhead and profit as damages from a fire in his home. In this case, the insurance company admitted coverage and made a payment towards repairs. The homeowner however believed that he was not paid in full for his claim as he was not paid overhead and profit. Overhead and profit are part of the costs paid to a contractor to make repairs and are normally charged to consumers. The homeowner claimed that he was entitled to overhead and profit even though he did not hire a contractor because they are a replacement cost and it is his choice as to whether to make the repairs with a contractor or not. The Appellate Court rejected this argument and found that the insurance company was only required to make payments for overhead and profit under a replacement cost policy when the homeowner actually incurred those costs or became contractually obligated to do so with a contractor. Since the homeowner did not hire a contractor and did not spend any money on overhead or profit he was not entitled payment for the same under the replacement cost insurance policy.
- Florida insurance claim
- Florida replacement cost insurance
- Florida overhead and profit insurance benefits