Legal Question in Insurance Law in Florida

Does Insurance Company have duty to not underinsure

Does insurance company have a duty to properly insure and not underinsure?

I bought a rental condo at more than a 50% discount cash (no mortgage) and went to my insurance agent to insure. I did not know how much to insure for. Agent determined the amount of insurance he said I needed. The upstairs unit had a washer hose break and my vacant unit was flooded ruining the ceiling, walls, flooring, kitchen cabinets and Central AC. Insurance did estimate that exceeds my coverage and only wants to pay my max policy limits that agent determined that we now know are inadequate/underinsurance.

Does the agent and/or the insurance company have a fiduciary responsibility to offer me proper/appropriate amount of insurance? If so can I sue them?

I already received a check (I have not cashed yet), which is about $12,000 short of the insurance companies estimate (which I suspect is low).


Asked on 11/27/02, 11:19 am

1 Answer from Attorneys
Michael Tobin Michael M. Tobin, P.A.

Re: Does Insurance Company have duty to not underinsure

This can only be answered by a careful examination of your policy. Does it provide for replacement cost? And your correspondence with the agent. You should be aware of the value better than the agent. You may also have a claim against the insurance company for the apartment above. Your settlement with your company must preserve those rights. You need representation by an attorney to properly handle your claims.

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Answered on 11/27/02, 1:08 pm


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