What is a Managed Repair Program?

Once a claim is covered under a homeowner insurance policy, the carrier may offer for the homeowner to participate in a "Managed Repair Program."  

Note: Only some policies allow the insurance company to provide this option, and carriers sometimes call it by a different name. When writing this article, the most common policy with this endorsement is written by Citizens Property & Casualty Insurance Company. 

Under a Managed Repair program, the insurance company offers to fix the covered damage with one of its preferred contractors. As the homeowner, you are still responsible for paying the insurance company the applicable deductible.  

Although this type of program seems to avoid any conflict regarding the price of the work between the policyholder and the insurance company, disputes can still arise. Let’s review what being involved in a managed repair type of program may mean for your insurance claim.  

Possible Limitations on Recovery for Repairs 

Policies with managed repair endorsements often include a limitation on the recovery, especially in the case of water damage in Florida.  

Typically, when there is a managed repair endorsement, the policy restricts the monetary recovery for water damage to $10,000. One of the benefits of participating in a managed repair program is that the $10,000 water limitation does not apply, and the policy holder will fix the covered damage regardless of the limit.  

Sounds good - however, those water damage limitations are only sometimes enforceable. That’s why it’s key for a homeowner to consult with a claims attorney before opting into a managed repair program with their carrier.  

Fair Warning: Common Disputes Regarding Managed Repairs 

The goal of managed repair type programs is to streamline the claims process and fix the Florida property damage to pre-loss condition with a reputable contractor. Yet, conflicts regarding the price of the repair work between the policyholder and the insurance company can still lead to disputes.  

At this property claims law firm, Kyle Staggs Esq. often sees arguments over the scope of the proposed work, meaning what repairs the insurance company will complete. This can come in two forms:  

Only Applies to “Covered” Damages 

As mentioned above, this endorsement only applies to covered damages. If the carrier determines that some of the damages are "covered" and others are "not covered," then you may need to dispute the "not covered" damages.  

The Proposed Scope of Work 

Additionally, the proposed scope of work may include only some of what it should under the policy, Florida statutes, or current Florida Building Code.  

There are several rules an insurance company or contractor must follow when completing work. For example, Florida Statute 626.9744 (2022) requires an insurance company to repair or replace undamaged adjoining areas when the damaged area cannot be replaced and matched in quality, color, or size.  

In practice, that means if a portion of a wood floor is damaged, an insurance company cannot just repair the damaged part if it does not match the surrounding area. Keep in mind that the statute doesn't apply to policies adjusted at Actual Cash Value (ACV); the insurer is also not to be considered a warrantor of the repairs made.  

Key Considerations: Participation in a Managed Repair Program 

In our opinion: Homeowners lose a lot of control when participating in a managed repair program.  

You are not able to select your own contractor, the contractor does not answer to you – but to your carrier, and all too often the insurance company, will choose the contractor who is the cheapest and not always the one who will do the best work. 

Despite those drawbacks, a managed repair program is sometimes the best option for a homeowner. However, even when the program is the best choice, it is still essential to have your Florida property damage claim evaluated to ensure that the program is the best option for you. An attorney like Kyle Staggs, Esq. will confirm that the proposed scope of repair is appropriate under the policy and Florida law to make sure that your property and peace of mind are restored.  

Since 2016, property owners have leaned on our legal guidance to make them whole again. Contact us today to discuss your unique claim and whether participating in a managed repair program is the best option for your case.