Florida Supreme Court Says General Contractors are Entitled to Overhead, Profit
The ruling also clearly outlines what is considered overhead and profit
A ruling published by the Supreme Court of Florida earlier this month held that general contractors are entitled to overhead and profit charges under a replacement cost homeowner's policy, according to an update from the Restoration Industry Association (RIA).
In Trinidad v. Florida Peninsula insurance Company, the Supreme Court said, ”...we hold that an insurer's required payment under a replacement cost policy includes overhead and profit, where the insured is reasonably likely to need a general contractor for the repairs, because the insured would be required to pay costs for a general contractor's overhead and profit for the completion of repairs in the same way the insured would have to pay other replacement costs he or she is reasonably likely to incur in repairing the property...”