Florida Homeowners Score Major Win in Denied Property Insurance Claim Lawsuit

A new ruling by a Florida appellate court could have major implications for the way denied property insurance claims are handled by insurers. The decision answers an important question regarding replacement costs, and it is something that many homeowners may be interested in learning more about. If you want to pursue a similar appeal, consider speaking with a Fort Lauderdale property insurance lawyer.

Citizens Fails to Provide Complete Trial Record During Appeal

In February of 2026, Insurance Business Magazine reported that Citizens had lost an appeal in Florida because they failed to provide the appellate court with a complete trial record. This loss meant that a family in Florida was able to keep their $61,000 jury award stemming from water damage incurred all the way back in 2015.

After the homeowners discovered the water damage, they filed a claim with Citizens. Months later, they received news that their insurer had denied their claim because the cause of the water was not covered under their policy. Specifically, the insurer argued that the water seepage had occurred repeatedly over a prolonged period, and that it did not stem from a single event.

The homeowners argued that the water damage had indeed been caused by a single, sudden flood in their home in 2015. After a jury trial, the homeowners achieved victory. The court ordered the insurer to pay for the homeowners’ damage, and it was not convinced by the evidence it produced of dry rot, mold, rust, and decay over a long period of time.

Citizens then filed an appeal, but it failed to include the complete trial transcript. As most lawyers are aware, an important part of preparing or “perfecting” an appeal is obtaining the full transcript. For whatever reason, Citizens’ legal team only provided an excerpt of the homeowner’s direct testimony.

Because the appellate court couldn’t verify what kind of trial evidence actually appeared in the case, all of Citizens’ arguments effectively fell flat. Throughout this case, Citizens exhibited an almost reckless confidence in its own success. The insurer argued that no jury in its right mind could have possibly ruled against them. They also failed to carry out even the most basic steps in perfecting their appeal.

It’s not clear whether their omission of the complete trial record stemmed from overconfidence or incompetence. Either way, it cost them dearly. This loss may also be encouraging to homeowners who are considering pushing back against similar denied claims in Fort Lauderdale.

Contact Our Fort Lauderdale Property Insurance Lawyers Today

At Fuxa & Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Source: 

insurancebusinessmag.com/us/news/property/florida-court-forces-property-insurers-to-pay-replacement-costs-without-repairs-564822.aspx