Filing Number: 786085
|
| Filing Accepted: 10/8/2024 |
| Last/Business Name
*
|
|
|
ABELMANN
|
|
First Name |
|
MATTHEW |
|
| Street Address
*
|
|
7935 LOWER PERSE CIR |
| City, State Zip
*
|
|
ORLANDO,
FL
32827
|
| Email Address
*
|
|
MTA5BU@VIRGINIA.EDU |
| Complainant Type:
*
|
|
Insured |
|
| Last/Business Name* |
|
ABELMANN |
|
First Name |
|
MATTHEW |
| Policy # * |
|
79EDD8992 |
|
Claim #* |
|
59-62R0-66X |
|
Attorney is Applicable
|
| Last Name* |
DEMILES
First Name *
JAMES
Initial
A
|
| Street Address* |
|
2700 N 29TH AVENUE, STE 106 |
| City, State Zip* |
|
HOLLYWOOD
,
FLORIDA
33020
|
| Email Address * |
|
JAMES@DEMILESLAW.COM |
|
|
| Insurer Type
*
|
|
Authorized Insurer
Unauthorized Insurer
|
|
|
| Insurer Name |
|
|
| Insurer Name* |
|
STATE FARM FLORIDA INSURANCE COMPANY
|
| Insurer Name* |
|
|
| Street Address* |
|
|
| City, State Zip* |
|
,
|
|
NAIC Company Code 10739 |
|
|
| Name of individual responsible for violation (if any):*
FRANK BARCLAY
|
| Type of Insurance
*
Residential Property & Casualty
|
|
|
| Reason for Notice
*
|
|
Claim Denial
|
|
Claim Delay
|
|
Unsatisfactory Settlement Offer
|
|
Unfair Trade Practice
|
|
Other
:
Ethical Violations
|
|
Other
:
Failure to Properly Investigate Claim
|
|
Other
:
Failure to Promptly Investigate Claim
|
|
Other
:
Failure to Adjust Loss
|
|
Other
:
Failure to Communicate With Insured in Regards to Claim
|
|
Other
:
Failure to Respond to Communications Regarding Claim
|
|
Other
:
Failure to Make Loss Payment
|
|
Other
:
Placing heavy financial burden on insured due to delay in claim payment
|
|
Other
:
Failure to pay 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.
|
| 624.155(1)(b)(3) |
|
Except as to liability coverages, failing to promptly settle claims, when the obligation to settle a claim has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage.
|
| 626.9541(1)(i)(3)(a) |
|
Failing to adopt and implement standards for the proper investigation of claims.
|
| 626.9541(1)(i)(3)(b) |
|
Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
|
| 626.9541(1)(i)(3)(c) |
|
Failing to acknowledge and act promptly upon communications with respect to claims.
|
| 626.9541(1)(i)(3)(d) |
|
Denying claims without conducting reasonable investigations based upon available information.
|
| 626.9541(1)(i)(3)(e) |
|
Failing to affirm or deny full or partial coverage of claims, and, as to partial coverage, the dollar amount or extent of coverage, or failing to provide a written statement that the claim is being investigated, upon the written request of the insured within 30 days after proof-of-loss statements have been completed.
|
| 626.9541(1)(i)(3)(f) |
|
Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of a compromise settlement.
|
| 626.9541(1)(i)(4) |
|
Failing to pay undisputed amounts of partial or full benefits owed under first-party property insurance policies within 60 days after an insurer receives notice of a residential property insurance claim, determines the amounts of partial or full benefits, and agrees to coverage, unless payment of the undisputed benefits is prevented by factors beyond the control of the insurer as defined in s. 627.70131(5).
|
|
*
Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
See subject policy of State Farm Florida Insurance Company, No. 79EDD8992. Specifically, all relevant language concerning indemnification of the insured for covered losses, included, but not limited to Pg 1-3 of 4 (Declarations), Homeowners Policy HW21-59, Section I Property Coverages, Pg 5-8; Section I Additional Coverages, Pg 8-11; Section I Losses Insured, Pg 12; Section I Loss Settlement, Pg 18-20; The Florida Endorsement (79-ED-D899-2); Option ID; Option OL.
|
| |
*
Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
§624.155
§626.9541
§627.70131.
Fla. Admin. Code Rule 69B-220.201
1. Failure to pay claim in full;
2. Failure to promptly investigate claim;
3. Failure to properly investigate claim;
4. Failure to Communicate With Insured in Regards to Claim;
5. Failure to Respond to Communications Regarding Claim;
6. Failure to Adjust Loss;
7. Failure to Act in Due Diligence and Good Faith to Resolve Claim;
8. Placing financial interest of the insurer before that of policy holders and claimants;
9. Looking for ways to deny coverage, pay less, delay payment, and otherwise “low ball” or “stone wall” claim; and/or,
10. Failure to properly train, evaluate, and manage adjusters;
The reasons for this may be attributed to improper training, supervision, and/or motivation of adjusters and claim supervisors to promptly and fairly investigate, adjust, and pay full benefits available to all beneficiaries. The insurer may have failed to adopt proper standards of investigation and adjustment of losses or is otherwise not implementing those standards, because, when the Insureds submitted their clearly covered claim based upon a loss from the sudden and accidental discharge or overflow of water into their home, an efficient, timely, and thorough claims investigation did not occur, claims communications were not responded to, no attempt at adjusting this loss was made by the insurer, and full payment and prompt payment for the loss did not occur, and instead the carrier mishandled the claim as detailed below. As a result, the Insureds were forced to retain professional public adjusters to assist them with the clearly covered claim, forcing the Insureds to incur the unnecessary expense of the public adjusters’ percentage/fee out of any future award on this clearly covered claim. The carrier mishandled the claim further after the Insureds retained public adjusters, as detailed below. As a result, the Insureds were forced to retain legal counsel to assist them with the clearly covered claim, forcing the Insureds to incur the unnecessary expense of the attorney percentage/fee out of any future award on this clearly covered claim.
This Civil Remedy Notice is related to State Farm Florida Insurance Company’s handling of a sudden discharge of water loss occurring on or about February 1, 2024 and insured under policy number 79EDD8992. At the time of the Insureds loss, the Insureds’ property was insured by State Farm Florida Insurance Company (hereinafter “State Farm”). The Insureds had paid all premiums on the Policy of insurance, and the Policy was in full force and effect at the time of the loss. The claim number related to this Civil Remedy Notice is 59-62R0-66X. A review of the Insureds Policy and the undisputed facts in the Insureds’ case reflects how poorly State Farm handled this claim, to the clear detriment of the Insureds, causing the Insureds to suffer further damages when the mishandling of the Insureds’ claim caused the Insureds to suffer additional unnecessary financial consequences, multiple times over based on their multiple independent acts of mishandling the claim adjustment on this clearly covered claim.
Insureds immediately noticed their property suffered a sudden discharge or overflow of water loss when, on February 1, 2024, Insureds woke up from bed to the sound of dripping water, and, when stepping out of bed, Insured Matthew stepped into a half inch puddle of water that pooled in his room while they slept. Insureds turned on their lights and saw the water was all throughout their home. Insured Matthew went outside and immediately turned off the water line to the home. Insureds then immediately began to dry the property themselves and they called Serve Pro. When the Insureds called Serve Pro, the company asked for a claim number to reference, and the Insureds then called to submit their claim to get a claim number to provide to Serve Pro.
Insured Matthew is an engineer and estimated his damages in the hundreds of thousands. In addition, the Insureds home was not habitable. Instead of properly and promptly investigating the loss, the assigned adjuster for the carrier determined that it was a subterranean leak contained by the slabs. That opinion by the carrier’s adjuster failed to account for the clear and undeniable facts of a major flood that pooled throughout the Insureds home in this loss just so the carrier can rely upon the misinformed opinion to undervalue this major loss. This was due to the carrier and/or the carrier’s representatives and adjusters failing to properly and promptly investigate this loss and respond to the communications of the Insureds in a timely fashion. Despite the obvious damage to the Insureds’ home and it’s connection to the sudden major water loss, the carrier inexplicably and wrongfully determined that although Insureds’ claim was covered, the Insureds were only owed $41,439.95 for coverage A. No payment was made for coverage C/personal property or coverage D/ALE.
The Insureds attempted to communicate with the carrier in relation to the scope of their loss and also about the fact that their home was uninhabitable, and they were forced to live in alternative rental housing and were desperately in need of coverage D funds from the carrier. The carrier failed to answer the Insureds’ communications or respond in a timely fashion, and the Insureds became desperate and concerned and were forced to retain professional public adjusters to assist them with the clearly covered claim, forcing the Insureds to incur the unnecessary expense of the public adjusters’ percentage/fee out of any future award on this clearly covered claim.
Insureds submitted their coverage c/personal property loss valuation documents through their public adjusters for a second time, and they submitted their coverage D/ALE documents through their public adjusters as well. In addition, the Insureds submitted their coverage A loss valuation via a rebuild estimate totaling $213,726.80.
In response to great efforts to communicate with the carrier on the claim by the Insureds public adjuster, the carrier later made additional small, grossly insufficient undisputed payments, making additional payments under coverage A for $10,257.45 and $12,590.78, and paying the Insureds $7,739.32, $ 4,312.66, $ 129.11, and $82.50 for Coverage D. The Insureds now had to pay their public adjusters a fee/percentage of the recovery from the carrier, unnecessarily, due to the carrier’s previous mishandling of the claim.
To make matters worse for the Insureds, following the carriers grossly insufficient undisputed payments to compensate the Insureds on their entire loss, the carrier continued to mishandle the claim. The carrier’s adjuster and the adjuster’s manager both failed to respond to communications from the Insureds’ public adjuster. To date, the carrier has not paid the Insureds anything for their personal property/contents loss. As a result of the lack of responsiveness, failure to adjust, failure to communicate, and unjust claim delay being committed by the carrier following their continued gross mis-undervaluation on the claim, the Insureds were forced to retain legal counsel, forcing the Insureds to incur the unnecessary expense of the attorney percentage/fee out of any future award on this clearly covered claim.
After the Insureds retained legal counsel, the Insureds served a Notice of Intent to Initiate Litigation on the carrier, Norice 201234. In response the carrier invoked Appraisal. The invocation of appraisal at this time, after making multiple, slow, undisputed payments, that were all grossly inadequate to compensate the Insureds on their loss, reflects the carrier’s continued intention to delay the processing of this claim to try to “cut their losses” on this claim by trying to pay the Insureds less than they would otherwise have to had they not invoked Appraisal here. That money-saving move of desperation by the carrier cost the Insureds further fees from their already expert-depleted potential recovery, again due to the carrier’s mishandling of their claim, guided by the desire to minimize what is paid out on the claim as opposed to what is in the best interest of the Insureds.
The Insured valued her loss at over $200,000, and making the repairs in a reasonable and timely fashion was of upmost importance here, due to the degree of damage and water intrusion and concerns of mold growth and health concerns that can result from mold exposure. Unable to make the repairs due to the high cost of the repairs, the Insured was placed in a position of financial hardship due to the carrier’s mishandling of this claim.
If State Farm had properly handled this claim from its inception, they would have covered the related damages and paid an amount of money to the Insureds that was reasonable in relation to the covered loss (coverage A, coverage C, and coverage D), and the carrier would have done this within the time period for providing a coverage determination and payment after the Insureds called in the claim by themselves, without any professional assistance or the requirement of paying any professional fees out of their recovery from the carrier.
State Farm failed and/or refused to comply with their obligation to the Insured under the Policy, and the failure and time-delays associated with the carrier’s failures in properly investigating the claim, making a coverage determination, and making full payment for covered damages, caused the Insureds to suffer contractual and extra-contractual financial consequences, and to suffer health consequences related to the loss as well.
If State Farm had properly handled this claim from the time the Insureds retained their public adjusters, the carrier would have covered the related damages and paid an amount of money to the Insureds that was reasonable in relation to the covered loss (coverage A, coverage C, and coverage D), and the carrier would have done this within a reasonable time period, without Insureds needing any further professional assistance or the requirement of Insureds having to pay further professional fees out of their recovery from the carrier.
As a result of the continued mishandling of the claim by the carrier after the Insureds retained public adjusters, the Insureds was forced to retain the services of counsel for further representation in pursuit of coverage and payment for all of the damages suffered in the major water loss. As a result of the Insureds retaining undersigned counsel, the Insureds must now pay attorney’s fees to counsel amounting to 25 % of any recovered settlement proceeds, plus costs. The unnecessary payment of attorney fees and costs on a clearly covered claim are quantifiable foreseeable consequential damages.
State Farm’s conduct in the handling of this loss is very unsatisfactory to the Insureds and was certainly not in the Insureds best interest.
State Farm failed to properly and promptly investigate the loss at the time of the Insureds reporting of the loss, as detailed above.
State Farm failed to advise or provide the Insureds with additional information that was necessary for the processing of their claim, and instead has caused unnecessary delay and confusion to the Insureds with their conduct, and forced the Insureds to unnecessarily suffer financial hardships, unnecessarily suffer health consequences from delays and unhealthy conditions in the home related to the carrier’s delays, and to unnecessarily hire a public adjuster and incur those fees, and then unnecessarily hire an attorney and incur those fees as well, which must be paid out of the award money the Insured needs to repair their home.
Ethical violations have been committed by State Farm: instead of properly and promptly investigating the claim and reasonably covering clearly covered damages, agents of State Farm have engaged in improper tactics to attempt to avoid coverage on the claim, to avoid financial responsibility on the claim, and/or to try to settle the claim for less than it is worth by misrepresenting the facts of the loss, the applicable coverages and the covered water and mold damage to the Insureds’ home.
As a result of the bad faith of State Farm, the Insureds home suffered continued water and mold damages that it otherwise would not have, had State Farm acted in the best interest of the Insureds and promptly and properly investigated the clearly covered major water loss. Due to the poor conditions in the home and the delays in the Insured’s ability to make repairs, caused by State Farm’s mishandling of this claim, the Insured incurred continued and unnecessary coverage D expenses. Furthermore the Insureds have already had to sacrifice a portion of their indemnity proceeds to their public adjuster due to the carriers mishandling of the claim prior to the Insureds hiring the public adjuster, and the Insureds will have to sacrifice a portion of any expected indemnity proceeds to both their public adjuster and legal counsel, due to the carriers mishandling of the claim following the Insured’s hiring of the public adjusters until the time Insureds were forced to retain legal counsel.
To satisfy this Civil Remedy Notice and alleged bad faith, the Insured will accept the following: $161,669.65 for Coverage A, $79,909.22 for Coverage C, Contents, and $77,787.02 for Coverage D/ALE, bad faith damages of $63,867.20 for public adjuster fees Insureds will have to pay from their award, bad faith damages of $47,904.88 for legal fees Insureds will have to pay from their award, and bad faith damages of the amounts that the Insured must pay to their Appraiser and Umpire, if necessary, as payment in full of the unpaid portion of Insured’s previously demanded loss amount on this Claim.
|
|
*
|
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
|