Florida Court Expands Homeowners’ Rights on Replacement-Cost Claims
In Brito v. Citizens, a Florida appeals court ruled that homeowners can seek full replacement cost for a denied claim without completing repairs first; if the denial was wrongful. This decision strengthens homeowners’ legal standing and limits insurers from requiring proof of completed repairs in such cases. It marks a significant shift in favor of policyholders disputing denied property insurance claims in Florida.
A June 18 ruling from Florida’s Second District Court of Appeal just gave homeowners a stronger footing when battling denied insurance claims.
In Brito v. Citizens Property Insurance, the court decided that policyholders can still sue for full replacement cost value (even if they haven’t completed any repairs) so long as the insurer wrongfully denied the claim in the first place.
That’s a big shift.
Why it matters
Before this decision, many insurers in Florida leaned on a technicality: they’d deny a claim, then argue that homeowners couldn’t claim full replacement value unless the work had already been done and receipts submitted.
The court pushed back on that idea.
If the insurer shouldn’t have denied coverage, it doesn’t get to use “lack of receipts” as a second excuse. Instead, the homeowner can recover what it would’ve cost to replace or repair the damage, regardless of whether they’ve paid out of pocket yet.
What it means for Florida homeowners
This ruling helps balance the power between homeowners and carriers, especially in cases where upfront repairs simply aren’t financially possible without a payout.
Here’s the practical impact:
- You don’t have to complete repairs before recovering full value if your claim was wrongfully denied.
- Legal claims become more viable if an insurer tries to dodge responsibility after a covered loss.
- It could discourage blanket denials, knowing they carry a risk of higher payouts if challenged in court.
That said, while the ruling is consumer-friendly, it may push insurers to be more cautious, or more expensive. Higher potential legal payouts could increase the pressure on premium pricing, especially in already high-cost states like Florida.
Still, the Brito case is a win for clarity and fairness.
Not sure where you stand?
If you've had a claim denied recently or you’re just unsure how your policy would respond in a worst-case scenario, it may be time for a review.
You can get a free quote and policy review here. It doesn’t cost anything to find out what your coverage actually promises, and what to do if it falls short.
