All Insurance Restoration Services, Inc .v. Citizens Property Insurance Corporation

Ashley M. Arias, Esq. (Hollywood, FL) (First Party Property) obtained Summary Judgment in State Court of Broward County for Citizens Property Insurance Corporation. The Plaintiff in this case was a water mitigation company who performed services at an Insured’s property following a covered loss. With respect to mitigation services, the subject policy had a Reasonable Emergency Measures provision which limits the amount of such measures to the greater of $3,000.00 or 1% of Coverage A. Over 2 months after the Plaintiff completed its services, it submitted its documents to Citizens, including an invoice totaling $8,739.81. Notably, Plaintiff did not produce any documents requesting to exceed the $3,000 limit as required under the policy. Upon receipt of this invoice, Citizens afforded coverage to the Plaintiff, pursuant to the Reasonable Emergency Measures policy provision, in the amount of $3,000. Shortly after receiving payment, Plaintiff filed a Breach of Contract action against Citizens alleging that Citizens had breached the policy of insurance by not issuing payment to the Plaintiff for its entire invoice. After discovery was completed, Citizens filed a Motion for Summary Judgment, showing that Citizens did not breach the policy as it paid full limits in accordance with the limitation, conditions, terms, exclusions, and endorsements under the policy. Citizens also showed that the Plaintiff never requested to exceed the policy limit as required under the policy. During oral argument Plaintiff claimed that the invoice that was provided to Citizens was an “implied” request to exceed the policy limit. However, the Court agreed that Citizens did not breach the policy of insurance and further stated that she found it “absurd” that the Plaintiff could claim to have requested to exceed the reasonably emergency measures policy limit two months after its services were completed. After the oral arguments, Citizens’ Motion was granted in its entirety.