When the Rebuild Bid Is Higher Than Your Insurance Payout
Key Takeaways: When your pool cage costs more to replace than your policy pays, the gap usually comes from screen enclosure sublimits, depreciation, a percentage-based hurricane deductible, or code-upgrade costs your policy doesn’t cover. Under Fla. Stat. § 627.7011, insurers covering a dwelling on a replacement cost basis often pay actual cash value first, and you may recover withheld depreciation by finishing repairs and keeping records. Law and ordinance coverage may pay for code upgrades, but it’s often capped at 25 or 50 percent of the dwelling limit. If your contractor’s bid exceeds the adjuster’s estimate, you may be able to file a supplemental claim, generally within 18 months of the date of loss. Initial claims must be noticed within 1 year. A property insurance bad faith claim generally becomes available only after a court finds the insurer breached the contract and enters a final judgment, so an experienced property insurance attorney may help you find and challenge the source of the shortfall.
If your pool cage costs more to replace than your insurer will pay, you may still have options under Florida law. Many Florida homeowners receive the insurer’s check after a hurricane, then get a contractor’s bid that is thousands of dollars higher. The difference can come from depreciation, a percentage-based hurricane deductible, a screen enclosure sublimit, or code-upgrade costs. Some of these gaps may be open to challenge.
At Kuhn Raslavich, P.A., we help Florida homeowners challenge underpaid and denied property insurance claims. If your pool cage rebuild cost is higher than what your carrier paid, call us at 877-352-7767 or contact us now to have your policy and claim reviewed.
Why Pool Cage Claims So Often Fall Short
A pool cage claim shortfall usually has more than one cause. The payout is usually the result of several separate calculations, and each can be reviewed on its own.
Coverage Limits and Sublimits
Look at where your pool cage is covered first. Florida homeowners policies generally separate dwelling coverage (Coverage A) from other structures coverage (Coverage B). Many policies also set a specific screen enclosure sublimit, and some exclude or limit hurricane coverage for screen enclosures unless you bought an endorsement. A sublimit can cap your recovery well below the real replacement cost. Your declarations page and endorsements generally show which limit applies.
Depreciation and Actual Cash Value
Your first check will often reflect depreciation. Under Fla. Stat. § 627.7011(3)(a), when a dwelling is insured on a replacement cost basis, the insurer must first pay at least the actual cash value of the loss, minus the deductible. It then pays the remaining amounts as work is performed and expenses are incurred. You may be able to recover the withheld depreciation by moving forward with the rebuild and documenting your costs.
You can also ask how your actual cash value was calculated. Under Fla. Stat. § 627.70131, if an insurer pays less than its own detailed estimate, it must give a reasonable written explanation of the difference. If your aluminum framing or screening was depreciated heavily and nobody explained why, you may have grounds to request the estimate and dispute it.
Building Code Upgrades
Current Florida Building Code wind-load requirements can make a new cage cost far more than the old one. Thicker beams, more fasteners, and engineered plans add cost. Whether your policy pays for these upgrades depends on your law and ordinance coverage.
How Hurricane Deductibles Widen the Gap
A hurricane deductible can be larger than your entire pool cage claim. Under Fla. Stat. § 627.701(3)(a), insurers must offer hurricane deductibles of $500, 2 percent, 5 percent, and 10 percent of the dwelling limit, subject to certain exceptions. On a home with a $400,000 dwelling limit, a 5 percent deductible is $20,000. If the cage is the only damage, you may receive little or nothing. A percentage hurricane deductible generally applies once per calendar year, so a deductible already met earlier that year may reduce a later claim.
Timing can determine which deductible applies. Fla. Stat. § 627.4025 defines hurricane coverage as coverage for loss caused by the peril of windstorm during a hurricane declared by the National Hurricane Center. The coverage period begins when the National Hurricane Center issues a hurricane warning for any part of Florida and ends 72 hours after the termination of the last hurricane watch or warning issued for any part of Florida. If your cage was damaged outside that window, the regular deductible may apply.
💡 Pro Tip: Write down the exact date and time of the damage and save weather alerts or news reports from that day. This record may help you show whether the loss fell inside the statutory hurricane window.
Making Sense of Your Screen Enclosure Insurance Coverage
Your screen enclosure coverage may depend on choices made when the policy was issued. Under Fla. Stat. § 627.7011(1), insurers must offer replacement cost coverage before issuing a homeowners policy, but that coverage is capped at the policy limits. The statute describes two options:
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Replacement cost coverage that excludes the costs of complying with current laws and ordinances
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Replacement cost coverage that includes law and ordinance costs, with the code-upgrade portion limited to 25 or 50 percent of the dwelling limit, as the policyholder selects
These options come with conditions. Code-upgrade coverage generally applies only to repairing the damaged part of the structure unless total damage exceeds 50 percent of the structure’s replacement cost. You can read the full text in Florida’s Chapter 627 insurance statutes.
Keep in mind that these percentages are tied to the dwelling limit. Pool cages are often insured under a separate other-structures limit or a screen enclosure sublimit. Learning about extended dwelling coverage can help you see the full picture.
|
Issue |
Florida Statute |
Why It Matters for Your Pool Cage |
|---|---|---|
|
Initial ACV payment and holdback |
§ 627.7011(3)(a) |
Withheld depreciation may be recoverable after repairs |
|
Law and ordinance coverage |
§ 627.7011(1) |
Code-upgrade costs may be covered up to 25% or 50% of the dwelling limit, if selected |
|
Hurricane deductible options |
§ 627.701(3)(a) |
Percentage deductibles can exceed the cage claim |
|
Hurricane time window |
§ 627.4025(2) |
Determines which deductible applies |
|
Claim deadlines |
§ 627.70132 |
Controls when you can file or supplement |
Deadlines That Protect Your Right to More Money
Florida imposes strict notice deadlines on property claims. Under Fla. Stat. § 627.70132, a claim or reopened claim is barred unless notice is given to the insurer within 1 year after the date of loss. A supplemental claim must be noticed within 18 months after the date of loss. These deadlines apply to policies issued or renewed on or after December 16, 2022. Older policies may differ.
Using a Supplemental Claim
A supplemental claim is often the main tool when rebuild bids come in higher. Fla. Stat. § 627.70132(1)(b) defines a supplemental claim as a claim for additional loss or damage from the same peril that the insurer already adjusted, or for costs incurred while completing repairs under an open, timely claim. If your contractor’s engineered bid exceeds the adjuster’s estimate, the 18-month window may be your opportunity to ask for more money.
The Insurer’s 60-Day Duty
Your insurer has deadlines too. Under Fla. Stat. § 627.70131(7)(a), within 60 days after receiving notice of an initial, reopened, or supplemental residential property claim, an insurer must pay or deny all or part of it, unless “the failure to pay is caused by factors beyond the control of the insurer.” If it denies the claim in whole or in part, or pays less than its own detailed estimate, it must explain in writing.
Practical Steps to Close a Pool Cage Claim Shortfall
Careful documentation is usually your strongest asset. Before you accept a final number, consider these steps:
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Request a complete copy of your policy, declarations page, and all endorsements
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Get at least one engineered bid from a licensed contractor that itemizes code-required upgrades
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Ask the insurer in writing to explain its depreciation and actual cash value calculations
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Keep receipts and invoices so you can recover any withheld depreciation
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Calendar your 1-year and 18-month deadlines based on the correct date of loss
💡 Pro Tip: Ask your contractor to separate costs required by current code from like-for-like replacement. This may make it easier to match each cost to the right coverage.
When an Underpayment May Become Bad Faith
Bad faith can arise when an insurer fails to attempt in good faith to settle a claim when, under all the circumstances, it could and should have done so. Fla. Stat. § 624.155 provides the civil remedy, which generally requires filing a civil remedy notice first and giving the insurer 60 days to cure. For property insurance, Fla. Stat. § 624.1551 adds a condition precedent. Certain bad faith claims can be brought only if the “named or omnibus insured or a named beneficiary has established through an adverse adjudication by a court of law that the property insurer breached the insurance contract and a final judgment or decree has been rendered against the insurer.” You can review this chapter in Florida’s insurance code provisions.
In practice, the contract dispute generally comes first. A homeowner usually has to win on the underpaid claim before a bad faith action becomes available. Before pursuing that bad faith action, a homeowner must generally file a civil remedy notice under Fla. Stat. § 624.155, and for property claims, must also satisfy the adverse-adjudication and final judgment requirement under Fla. Stat. § 624.1551. The pre-suit notice required under Fla. Stat. § 627.70152 is a separate requirement that applies to the underlying breach-of-contract property insurance lawsuit, not to the bad faith action itself.
How Our Team Approaches Underpaid Storm Claims
Our attorneys have extensive experience challenging lowball storm damage payments across Florida. Recent results include recovering over $286,000 at trial on an underpaid Hurricane Nicole claim in Lake County and $200,000 on an underpaid Hurricane Milton claim in Manatee County. Attorney Kevin M. Conneran was recognized as a 2026 Super Lawyers Rising Star, an honor given to no more than 2.5 percent of eligible attorneys in each state. Past results do not guarantee a similar outcome, because every claim depends on its own facts and policy language.
If you believe your screen enclosure insurance payout is too low, an experienced screen enclosure insurance lawyer can review where the gap came from. Sometimes the shortfall is a real limit issue. In other cases, it comes from improper depreciation, the wrong deductible, or an incomplete estimate.
Frequently Asked Questions
1. Is my pool cage covered under Coverage A or Coverage B?
It depends on your policy. Some policies treat attached enclosures as part of the dwelling, while others place them under other structures or a screen enclosure sublimit. Your declarations page and endorsements generally control.
2. Can I get more money if my rebuild costs more than the estimate?
You may be able to. A supplemental claim generally must be noticed within 18 months after the date of loss under Fla. Stat. § 627.70132.
3. Why did my insurer hold back part of the payment?
Under Fla. Stat. § 627.7011(3)(a), insurers generally pay actual cash value first. The remaining replacement cost is paid as work is performed and expenses are incurred, unless the dwelling is a total loss.
4. Does my policy cover building code upgrades?
Generally, only if you have law and ordinance coverage. Under Fla. Stat. § 627.7011(1), that coverage is often limited to 25 or 50 percent of the dwelling limit.
5. Can I sue for bad faith right away?
Generally, no. Fla. Stat. § 624.1551 requires a court adjudication and final judgment that the insurer breached the contract as a condition precedent.
Protecting Your Recovery After Pool Cage Damage
A gap between your pool cage replacement cost and your insurance payout is not always the final word. Sublimits, depreciation, hurricane deductibles, and law and ordinance coverage each affect your recovery, and Florida statutes may give you tools to challenge improper calculations. Deadlines under Fla. Stat. § 627.70132 are strict, so acting early can protect your options.
If your Florida homeowners insurance claim for a pool cage has been underpaid, Kuhn Raslavich, P.A. is ready to review it. Call 877-352-7767 or schedule your claim review today.
Disclaimer: This content is for informational purposes only and is not legal advice. Every case is unique, and results may vary. Consult an attorney about your specific circumstances.