Last week the Florida Second District Court of Appeal delivered a significant win for insurers in People’s Trust Insurance Co. v. Abraham. The ruling reverses a trial court decision and reaffirms insurers' ability to enforce managed repair provisions, an increasingly vital tool in Florida’s complex property insurance market.
At issue was People’s Trust’s right to direct repairs under its policy’s “option to repair” clause. After accepting coverage for a roof claim, the insurer selected its affiliate contractor and instructed the homeowners to sign a work authorization and pay their deductible. The homeowners refused, alleging licensing issues and demanding documentation.
The appellate court rejected those arguments. Citing prior precedent, it held that general contractors may oversee roofing work if licensed subcontractors perform it. More importantly, the court clarified that insurers are not contractually obligated to “cause” licensure documentation to be produced; they are instead only obligated to instruct the contractor, which People’s Trust did.
For insurers and defense counsel, this decision reinforces two key takeaways: First, clear policy language can and should be enforced, particularly around managed repair. Second, insureds who fail to cooperate - especially when no genuine legal bar exists - may risk forfeiting coverage. As litigation around repairs continues, this case marks a welcome step toward greater clarity and balance in Florida’s insurance landscape.
