Putting The Power In The People’s Hands

Defining total and partial losses

On Behalf of | Aug 27, 2021 | blog

Given that your home likely ranks among your most valuable assets, you (like most in Florida) take every measure within your control to mitigate the risk your property may face from threats like fire. One of those is ensuring your home to cover losses should a worst-case scenario occur and your home sustains fire damage.

Many come to us here at Mintz Trumpmann, P.A. after enduring such a catastrophe concerned that their insurers will try to avoid paying everything their policies entitle them to. It is true that insurers do not stay in business by paying out on every claim. Yet you pay good money for extensive insurance coverage. You should know what you should receive in the event of a fire.

Coverage for a total loss

You might think that fire damage losses are a subjective judgment. Fortunately, that is not the case. The insurance industry follows a standard when defining a “total loss,” that being that the costs for the losses sustained in a fire exceed the insured value of your home.

Per Section 627.702 of Florida’s state statutes, in the event of a total loss due to a structural fire, you should receive the entire designated coverage amount on your property.

Coverage for a partial loss

Similarly, the insurance industry also defines a “partial loss.” A partial loss occurs when fire (or another cause) does not completely render your property unsalvagable or when the estimated repair costs do not exceed your coverage limit. For such a loss, coverage must cover the actual amount of the loss while not exceeding the limit of the policy for the specified peril.

You can find more information on recouping losses following a fire by continuing to explore our site.