Published in the Daily Business Review
In an article published on 7/29 in the Daily Business Review, Ball Janik LLP Partner Kelly Corcoran discusses how strong storms and cheap construction in Florida lead to an unfeasible situation for insurance coverage in the state. A glut of cheap lumber has meant homes going up faster, though this can lead to construction defects, especially as residents and HOAs approach hurricane season. In turn, the pressure on insurers becomes untenable.
“This paradigm is unsustainable, dangerous, and, in the end, economically disastrous for Florida’s insurance sector,” writes Corcoran. “Insurers have left the state in droves, thanks at least partly to this devastating cycle. It’s why so many insurers often pay out the bare minimum—if they pay out at all.”
Corcoran adds that builders need to be held legally and fiscally accountable when storms exploit these construction defects.
“Together, we can stanch the flood of insurers heading away from Florida permanently, ensure that our state remains a magnet for doing business, and that residents can utilize valid insurance claims to stave off risks,” he writes. “In this way, we can keep the ‘sunshine’ in the Sunshine State—even when it rains.”
Read the story in full; click here (subscriber-based).