Florida Fourth DCA Reverses and Remands Due to Admission of Evidence of Estimated But Not Yet Incurred Repair Costs
By Kelly M. Vogt
In Universal Prop. & Cas. Ins. Co. v. Qureshi, 2024 Fla. App. LEXIS 5804, Case No. 4D2023-1338 (Fla. 4th DCA July 24, 2024), Universal Property & Casualty Insurance Company (Universal) appealed a trial court ruling that Universal breached the terms of Universal’s insureds’ property insurance policy by paying them only the $10,000 policy limit for damage caused by a water leak at the property that had caused mold. However, the insureds never repaired the damage described in the estimate they submitted to Universal for reimbursement prior to selling the insured property.
Before trial, Universal moved in limine to preclude the insureds from presenting evidence related to the cost of any repairs that had not been performed before the sale of the property. Universal argued that the evidence it sought to exclude was irrelevant to calculating the damages because the policy’s loss settlement terms did not require Universal to pay for repairs that were never made, and now cannot be made due to the sale of the property.
On appeal, the court held that the trial court erred by allowing the insureds to introduce the estimated repair costs for repairs that were never performed as evidence, noting that, in similar insurance policy disputes, “[c]ourts have almost uniformly held that an insurance company’s liability for replacement cost does not arise until the repair or replacement has been completed.” Here, the court held that the insureds’ policy is clear and unambiguous: the insureds were not entitled to repair costs until “work is performed and expenses are incurred.”
Because the trial court allowed the jury to consider evidence of estimated but not yet incurred repair costs in determining recoverable damages, the Fourth District Court of Appeal reversed and remanded for a new trial on the issue of damages. The court also certified conflict with the Third District Court of Appeal’s decision in Citizens Prop. Ins. Co. v. Tio, 304 So. 3d 1278 (Fla. 3d DCA 2020).
Kelly M. Vogt