Civil Remedy Filing

Civil Remedy Notice of Insurer Violations

Filing Number: 785559

Filing Accepted: 10/3/2024

Print Filing

Complainant

Last/Business Name *

KOCH-LICHTER

First Name

ELIZABETH

Street Address *

699 140TH AVE E

City, State Zip *

MADEIRA BEACH, FL 33708

Email Address *

E.KOCHLICHTER@GMAIL.COM

Complainant Type: *

Insured

Last/Business Name*		KOCH-LICHTER		First Name		ELIZABETH
Policy # *		647282		Claim #*		943110

Attorney

Attorney is Applicable

Last Name*	STAGGS First Name * KYLE Initial B
Street Address*		1715 W. CLEVELAND STREET
City, State Zip*		TAMPA , FLORIDA 33606
Email Address *		COURTDOCS@WILLIAMSPA.COM

Violation

Insurer Type *		Authorized Insurer Unauthorized Insurer

Insurer Name
Insurer Name*		HOMEOWNERS CHOICE PROPERTY & CASUALTY INSURANCE COMPANY, INC.
Insurer Name*
Street Address*
City, State Zip*		,
NAIC Company Code 12944

Name of individual responsible for violation (if any):* ALL ADJUSTERS, SUPERVISORS, MANAGEMENT AND INDIVIDUALS ASSOCIATED WITH OR RETAINED BY HOMEOWNERS CHOICE PROPERTY & CASUALTY INSURANCE COMPANY, INC. IN THIS CLAIM.
Type of Insurance * Residential Property & Casualty

Reason for Notice *

	Claim Delay
	Claim Denial
	Unsatisfactory Settlement Offer
	Unfair Trade Practice
	Other : Failure to Properly Investigate Claim and with Due Regard to Insured's Interest
	Other : Failure to Pay the Claim in Full

* Statutory provision(s) which the insurer allegedly violated.

	624.155(1)(b)(1)		Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.
	626.9541(1)(i)(3)(d)		Denying claims without conducting reasonable investigations based upon available information.

* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

RELEVANT POLICY LANGUAGE The specific policy language that is believed to be relevant to the violations includes, but is not limited to, the following: See Subject Policy: Homeowners Choice Property & Casualty Insurance Company, Inc. Policy No.: 647282 loss payment provision, policy definitions, and policy exclusions section.

* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Insureds' Address: 699 140th Ave E, Madeira Beach, Florida, 33708 Insurer’s Address: 5300 West Cypress Street, Suite 100, Tampa, FL 33607 This Civil Remedy Notice is filed by the Insureds, Elizabeth Koch-Lichter and Fred Koch-Lichter, against Homeowners Choice Property & Casualty Insurance Company, Inc. (“Homeowners Choice”) for its failure to act in good faith in handling the Insureds’ claim. On or about August 4, 2024, the Insureds’ property sustained significant damage due to a hurricane while the Policy was in full force and effect. The damage affected multiple areas of the property, including windows, siding, paint, fence, and interior damages to multiple rooms. Despite the extensive and apparent damage, Homeowners Choice conducted a limited and inadequate investigation, producing an estimate of only $18,950.51, which grossly underestimates the true cost of repairs. In contrast, Ask An Adjuster, the independent adjuster retained by the Insureds, conducted a thorough and proper investigation, estimating the necessary repairs at $132,752.76. The difference between these estimates high-lights Homeowners Choice’s failure to properly assess and pay the Insureds’ claim in good faith. Homeowners Choice has refused to pay for critical elements of the loss, including the windows, siding, paint, fence, and interior damages, which are clearly covered under the Policy. By underpaying the claim, the carrier has demonstrated a clear disregard for its contractual obligations and a failure to act in good faith, as required by Florida law. The underpayment has forced the Insureds to bear unnecessary financial burdens, including expending additional resources to pursue the insurance proceeds that are rightfully owed to them. The Insureds have also suffered from the loss of use of these funds, which has compounded their damages, including delays in necessary repairs and further damage to their property. Homeowners Choice’s actions—or lack thereof—constitute a failure to act in good faith, as the insurer has not provided the full benefits due under the Policy. This failure has caused direct harm to the Insureds and has resulted in ongoing financial and emotional strain. To cure these defects, Homeowners Choice Property & Casualty Insurance Company, Inc. must immediately pay the full amount of $132,752.76 as estimated by Ask An Adjuster, and any additional amounts due under the Policy, including but not limited to interest, attorney’s fees, and costs incurred by the Insureds in pursuing this claim.

Comments

User Id		Date Added		Comment
Legal@hcpci.com		12-01-2024		This is Homeowners Choice Property & Casualty Insurance Company’s (“HCPCI”) response to the Civil Remedy Notice of Insurer Violations (“CRN”) filed on behalf of Elizabeth Koch-Lichter (“Insured”). HCPCI reviewed this CRN and conducted a thorough review of the subject claim (“claim”) and confirmed it handled the claim properly. Regarding an aspect of the claim, HCPCI issued payment for it on the information available to HCPCI and the circumstances at the time of such payment. Ultimately, HCPCI handled the claim in accordance with the policy and all statutory and regulatory requirements. HCPCI denies each allegation of bad faith and improper conduct in the CRN. At all times, HCPCI acted in good faith, fairly and honestly toward the Insured and with due regard for the Insured’s interests. Furthermore, the CRN fails to adequately describe the alleged violations and fails to provide sufficient information to have created an opportunity for the alleged violations to be corrected (although no violations exist). Instead of complying with Florida Statutes, Section 624.155, the Insured’s attorney in the CRN contained an inaccurate recitation of the facts, failed to reference specific, relevant insurance policy language; cited irrelevant statutes; failed to offer a valid cure, and relied on inaccurate and conclusory statements. The Insured’s laundry list of inapplicable statutes is insufficient. Julien v. United Prop. & Cas. Ins. Co., 311 So. 3d 875 (Fla. 4th DCA 2021). The CRN cannot serve as the basis of a bad-faith action against HCPCI. Finally, upon request by the Department of Financial Services, HCPCI will provide to the Department of Financial Services detailed correspondence HCPCI provided to the Insured regarding HCPCI’s obligations for the claim under the insurance contract and the facts of the claim.

Acknowledgement
*	The submitter hereby states that this notice is given in order to perfect the rights of the person(s) damaged to pursue civil remedies authorized by Section 624.155, Florida Statutes. Before submitting a Notice using this system, please verify that all text has been entered correctly and completely. Once the Notice has been submitted, the text cannot be changed or deleted.

DFS-10-363
Rev. 10/14/2008