People’s Trust Insurance Prevails in Major Florida Appeals Court Ruling on Managed Repairs
Florida appeals court has ruled in favor of People’s Trust Insurance, confirming its right to control property repairs under its homeowner policy terms. The decision overturns a previous ruling that favored homeowners and supports the insurer’s managed repair process, setting a precedent for similar disputes in the state’s complex insurance landscape.
In a ruling with wide implications for Florida’s property insurance market, the Second District Court of Appeal has sided with People’s Trust Insurance Company, reaffirming insurers' rights to manage repairs under policy provisions. The May 7 decision reverses a lower court’s ruling in favor of homeowners John and Lois Abraham.
The dispute began when the Abrahams filed a claim for roof damage. People’s Trust opted to repair the damage through its “option to repair” clause, using its affiliated contractor, Rapid Response Team (RRT). The homeowners refused to authorize the work or pay their deductible, arguing that RRT lacked proper roofing licensure.
A trial court initially ruled that signing off on the work could violate state law. However, the appeals court found that general contractors in Florida may oversee roofing projects if licensed roofers perform the actual work. This interpretation aligns with a 2022 ruling in People’s Trust v. Lamolli.
The appellate court also clarified that People’s Trust met its contractual obligations by instructing RRT to provide licensing proof—it was not required to ensure the contractor did so. By refusing to cooperate, the court ruled, the Abrahams materially breached their policy.
The case now returns to the lower court for judgment in favor of People’s Trust. The outcome reinforces the enforceability of managed repair clauses, offering greater clarity for both insurers and policyholders in Florida’s often litigious insurance environment.
