A Florida court has upheld a ruling that denies an insurance claim for water damage due to a lack of evidence linking the damage to a covered peril. The case, Empire Pro Restoration, Inc. A/A/O Lambert Bowden & Elaine Bowden v. Citizens Property Insurance Corporation, was decided by the District Court of Appeal of Florida on May 26, 2021. This ruling affects homeowners and restoration companies who rely on insurance coverage for water damage claims.
The case centers around a homeowner, Lambert Bowden, whose home was insured by Citizens Property Insurance Corporation. Bowden experienced a roof leak in 2017, which led to water damage inside his home. Empire Pro Restoration, Inc. performed the necessary remediation work and sought reimbursement from the insurance company by claiming the rights to recover costs under Bowden's insurance policy. However, the insurer denied the claim, stating that the policy did not cover damage caused by wear and tear and that the leak was not caused by a covered peril.
The dispute escalated to a breach of contract lawsuit after Citizens Property Insurance Corporation denied the claim. The trial court found that while rain caused the interior damage, neither party provided evidence to determine what caused the roof leak. The court noted that Empire Pro Restoration failed to show any factual basis for claiming that the damage was due to rain entering through an opening caused by a covered peril. As a result, the trial court granted the insurer's motion for summary judgment, leading to the appeal.
The District Court of Appeal reviewed the case and confirmed the trial court's decision. The court ruled that Empire Pro Restoration did not meet its burden of proof regarding the cause of the water damage. The court stated, "[Appellant] failed to present any sworn evidence to support a factual basis for finding that the damage was caused by rain entering through an opening caused by a covered peril." The judges on the panel included Judge Forst, Judge Warner, and Judge Damoorgian.
The ruling clarifies the burden of proof for homeowners and restoration companies when seeking coverage under all-risk insurance policies. The court explained that an all-risks policy covers losses unless specifically excluded. The insured must prove that the loss occurred while the policy was active, and then the burden shifts to the insurer to show that the loss is excluded. If an exclusion applies, the insured must demonstrate that an exception to that exclusion exists.
In this case, the court found that Empire Pro Restoration did not provide sufficient evidence to prove that the damage was caused by a covered peril. The court noted that the insured agreed they did not know what caused the roof to leak. This lack of evidence led to the conclusion that the trial court correctly granted summary judgment in favor of Citizens Property Insurance Corporation.
The impact of this ruling is significant for homeowners and restoration companies in Florida. It emphasizes the importance of providing clear evidence when filing insurance claims, particularly in cases involving water damage. Homeowners must understand that if they cannot prove that their damage resulted from a covered peril, their claims may be denied.
This case may set a precedent for future insurance claims related to water damage, as it reinforces the necessity for insured parties to present concrete evidence linking their claims to covered events. Homeowners should be aware that without proper documentation and proof of causation, they may face challenges in recovering costs for damages.
As for what’s next, it is unclear if Empire Pro Restoration intends to appeal the ruling. The court's decision is not final until any motions for rehearing are resolved. There are no related cases pending that were mentioned in the court filing.