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Shedding Light on the Dark Side of Managed Repair



By Jill Henniger Bowman
Stockham Law Group P.A.  



     A shroud of darkness is falling across Florida homeowner's property insurance claims as the shadow of Managed Repair programs grows. These programs permit insurers to take over homeowner's claims, repair on whatever scopes they like, cutting homeowners out of their own home restoration.  And, as predicted, Citizens' Property Insurance Company is joining those insurers' luring scores of unsuspecting Florida homeowners to opt-in to Managed Repair programs. See, Citizens negotiating managed repair program, Ron Hurtibuse, Sun Sentinel, April 19, 2016;  This humble policyholder advocate believes it is time to shed some light on the dark side of Managed Repair.  Homeowners should be made aware of what is actually happening inside these misleading programs,  so they can make educated choices and  keep control over the restoration of their own homes for the safety and security of their families. 

     Light Shed on the Dark Side of Managed Repair in West Palm Beach Area

     On June 21, 2016, WPTV News aired a story about Florida Peninsula Insurance Company's botched Managed Repair of Judy Ruddy's home.  Ruddy, a once unsuspecting and faithfully paying insured, has experienced first-hand the dark side of Managed Repair.  Click here to see WPTV the story.  Not surprisingly the story notes that complaints to the Office of Insurance Regulation show Ruddy is not alone.  

     Light Shed on the Dark Side of Managed Repair in Fort Myers Area

    Similarly, on June 23, 2016, WINK News aired the story of the managed repair nightmares of two families in the Fort Myers area. They had dark side experiences of their own with, respectively, Tower Hill Prime Insurance Company and Peoples' Trust Insurance Company. Click here to see the WINK story on the Campbells and the Willekes.  Pay attention Florida homeowners or you will find that your once in a lifetime homeowner's insurance claim is not your claim at all.   

     Notably, in the WINK story the industry response to the problems with Managed Repair was to dodge the question entirely and point the finger at AOB ("Assignment of Benefits") contractors.  Insurers claim the reason they must "assign" homeowners' claims back to themselves is so homeowners cannot assign them to a handful of unscrupulous contractors. Remarkably ironic given their own serious conflict of interest in using  their often times affiliated contractors through Managed Repair. Put another way, Insurers response to botched Managed Repair jobs is well, "since we cannot beat them; we'll just beat them to the punch."  See, Homeowners, Hostages In a Hostile Claims Environment, published June 1, 2016

     Still again, the question is what is the answer?  The answer has always been the same - not simple - but true.  Policyholders must unite to bring balance to the force pushing back the darkness in favor of the light.  Homeowners, not insurers or contractors, should control the restoration of their homes after a covered loss.  Policyholders in New York figured this out and now legislation is pending to restrict Insurers from requiring the use of any particular contractor, requiring disclosure of any affiliation with any recommended contractor, and prohibiting Insurers from making recommendations, except in circumstances where the Insured has made a request for a recommendation.