Filing Number: 786806
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| Filing Accepted: 10/14/2024 |
| Last/Business Name
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| Street Address
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1730 OAKMONT LN |
| City, State Zip
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ORLANDO,
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32804
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| Email Address
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ACTORKEITHHUDSON@GMAIL.COM |
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Insured |
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| Last/Business Name* |
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HUDSON |
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First Name |
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KEITH |
| Policy # * |
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59CWC0985 |
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Claim #* |
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59-39V0-34D |
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Attorney is Applicable
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| Last Name* |
BOLTZ
First Name *
BROOKE
Initial
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| Street Address* |
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1221 E. BROADWAY STREET, SUITE 1011 |
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OVIEDO
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FLORIDA
32765
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| Email Address * |
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BROOKEBOLTZ@BOLTZLEGAL.COM |
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| Insurer Type
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Authorized Insurer
Unauthorized Insurer
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| Insurer Name |
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| Insurer Name* |
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STATE FARM FLORIDA INSURANCE COMPANY
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| Insurer Name* |
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| Street Address* |
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| City, State Zip* |
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NAIC Company Code 10739 |
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| Name of individual responsible for violation (if any):*
BELINDA BYRD; WAYNE DUST; SHANE GERMILLION;
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| Type of Insurance
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Residential Property & Casualty
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| Reason for Notice
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Unsatisfactory Settlement Offer
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Unfair Trade Practice
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Other
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Failure to Pay the Claim in Full
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Other
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Failure to Properly Investigate Claim and with Due Regard to Insured's Interest
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Statutory provision(s) which the insurer allegedly violated.
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| 624.155(1)(b)(1) |
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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.
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| 624.155(1)(b)(3) |
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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.
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| 626.9541(1)(i)(3)(a) |
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Failing to adopt and implement standards for the proper investigation of claims.
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| 626.9541(1)(i)(3)(b) |
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Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
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| 626.9541(1)(i)(3)(c) |
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Failing to acknowledge and act promptly upon communications with respect to claims.
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| 626.9541(1)(i)(3)(f) |
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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.
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Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
STATE FARM FLORIDA INSURANCE COMPANY HOMEOWNERS POLICY NO.: 59CWC0985. The Insurer has violated the Policy's "Coverages" provision. The Insured’s loss is covered by the Policy and there are no applicable exclusions. Further, the Insurer has failed to comply with the "Loss Settlement" and "Loss Payment" clauses.
The said clauses incorporated in the policy are violated as follows:
We have requested the certified policy but the same has not been produced by the Insurance company. Therefore, all specific policy provisions that can be applied in this case cannot be cited accurately. Specifically, SECTION I Property Coverages on Dwelling, Coverage on Perils Insured Against, Coverage on Loss Settlement, and Coverage of Loss Payment which are all critical in the case at bar.
Other languages of the policy that are relevant to the provision are as follows:
SECTION I – PROPERTY COVERAGES – COVERAGE A- DWELLING
We cover the dwelling and materials and supplies located on or adjacent to the residence premises for use in the construction, alteration, or repair of the dwelling or other structures on the residence premises.
SECTION I – LOSSES INSURED – COVERAGE A- DWELLING
We will pay for the accidental direct physical loss is excluded or limited in SECTION I – LOSSES NOT INSURED or otherwise excluded or limited in this policy. However, loss does not include and we will not pay for, any diminution in value.
SECTION I- LOSS SETTLEMENT
Only the Loss Settlement Provisions shown in the Declarations apply. We will settle covered property losses according to the following. However, the valuation of any covered property losses does not include, and we will not pay, any amount for diminution in value.
COVERAGE A – DWELLING
I. A1- Replacement Cost Loss Settlement-Similar Construction.
a. We will pray the cost to the repair or replace with similar construction and for the same use on the premises shown in the Declarations, the damaged part of the property covered under SECTION I – PROPERTY COVERAGES, COVERAGE A – DWELLING, except for wood fences, subject to the following:
(1) we will pay only the actual cash value at the time of the loss prior to repair or replacement of the damaged part of the property, up to the applicable limit of liability show in the Declarations, not to exceed the cost to repair or replace the damaged part of the property;
(2) in addition, we will pay any remaining covered additional amounts you actually and necessarily incur to perform such repair or replacement as work is performed and expenses are incurred and submitted, or an amount up to the applicable limit of liability shown in the Declarations, whichever is less. There will be no deduction for depreciation;
(3) we will not pay for increased costs resulting from enforcement of any ordinance or law regulating the construction, repair or demolition of a building or other structure, except as provided under OPTIONAL POLICY PROVISIONS, Option OL – POLICY PROVISIONS, Option OL – Building Ordinance or Law Coverage; and
(4) if a total loss occurs to the dwelling used principally as a private residence on a residence premises shown in the Declarations, payment on a replacement cost basis will not require repair or replacement of the damaged property. There will be no deduction for depreciation.
b. Wood Fences: We will pay the actual cash value for loss pr damage to wood fences, not to exceed the limit of liability shown in the Declarations for COVERAGE A – Other Structures.
2. A2 – Replacement Cost Loss Settlement – Common Construction.
a. We will pay the cost to repair or replacement with common construction and for the same use on the premises shown in the Declarations, the damaged part of the property covered under SECTION I – PROPERTY COVERAGES, COVERAGE A – DWELLING, except for wood fences, subject to the following:
(1) we will pay only for repair or replacement of the damaged part of the property with common construction techniques and materials commonly used by the building trades in standard new construction. We will not pay the cost to repair or replace or replace obsolete, antique, or custom construction with like kind and quality;
(2) we will pay only the actual cash value at the same time of the loss prior to repair or replacement of the damaged part of the property, up to the applicable limit of liability shown in the Declarations, not to exceed the cost to repair or replace the damaged part of the property as described in a.(1) above;
(3) in addition, we will pay any remaining covered additional amounts you actually and necessarily incur to perform such repair or replacement, as described in a.(1) above, as work in performed and expenses are incurred and submitted, or an amount up to the applicable limit of liability shown in the Declarations, whichever is less. There will be no deduction for depreciation;
(4) we will not pay for increased costs resulting from enforcement of any ordinance or law regulation the construction, repair or demolition of a building or other structure, except as provided under OPTIONAL POLICY PROVISIONS, Option OL – Building Ordinance or Law Coverage; and
(5) if a total loss occurs to the dwelling used principally as a private residence on a residence premises shown in the Declarations, payment as described in a.(1) above, will not require repair or replacement of the damaged property. There will be no deduction for depreciation.
b. Wood Fences: We will pay the actual cash value for loss or damage to wood fences, not to exceed the limit of liability shown in the Declarations for COVERAGE A – Other Structures.
SECTION I – CONDITIONS
1. Insurable Interest and Limit of Liability. Even if more than one person has an insurable interest in the property covered, we will not be liable:
a. to the insured for an amount greater than the insured’s interest; or
b. for more than the applicable limit of liability.
2.Your Duties After Loss. After a loss to which this insurance may apply, you must cooperate with us in the investigation of the claim and also see that the following duties are performed:
a. give immediate notice to us or our agent and also notify:
(1) the police if the loss is caused by theft, vandalism, or any other criminal act; and
(2) the credit card company or bank if the loss involves a credit card or bank fund transfer card;
b. protect the property from further damage or loss and also:
(1) make reasonable and necessary temporary repairs required to protect the property;
(2) take reasonable and necessary actions to preserve and retain any damaged property; and
(3) keep an accurate record of repair expenses;
c. prepare an inventory of damaged or stolen personal property:
(1) showing in detail the quantity, description, age, replacement cost, and amount of loss; and
(2) attaching all bills, receipts, and related documents that substantiate the figures in the inventory
8. Loss Payment
We will adjust all losses with you. We will pay you unless some other person is named in the policy or is legally entitled to receive payment. Loss will be payable upon the earlier of the following:
a. 20 days after we receive your proof of loss and reach agreement with you; or
b. 60 days after we receive your proof of loss and:
(1) there is an entry of a final judgment; or
(2) there is a filing of an appraisal award with us.
If we do not pay or deny a loss within 90 days after we receive notice of an initial, reopened, or supplemental property insurance claim from you and no factors beyond our control would reasonably prevent us from making payment, interest will be paid in accordance with Section 627.70131(5) of the Florida Insurance Code.
FLORIDA ADMINISTRATIVE CODE VIOLATED Sections 69B-220.201 Ethical Requirements.
(2) Violation.
(a) Violation of any provision of this rule shall constitute grounds for administrative action against the licensee.
(b) A breach of any provision of this rule constitutes an unfair claims settlement practice.
(3) Code of Ethics. The work of adjusting insurance claims engages the public trust. An adjuster shall put the duty for fair and honest treatment of the claimant above the adjuster’s own interests in every instance. The following are standards of conduct that define ethical behavior, and shall constitute a code of ethics that shall be binding on all adjusters:
(b) An adjuster shall treat all claimants equally.
2. An adjuster shall adjust all claims strictly in accordance with the insurance contract.
(c) An adjuster shall not approach investigations, adjustments, and settlements in a manner prejudicial to the insured.
(d) An adjuster shall make truthful and unbiased reports of the facts after making a complete investigation.
(e) An adjuster shall handle every adjustment and settlement with honesty and integrity, and allow a fair adjustment or settlement to all parties without any remuneration to himself except that to which he is legally entitled.
(f) An adjuster, upon undertaking the handling of a claim, shall act with dispatch and due diligence in achieving a proper disposition of the claim.
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Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
1) failure to pay claim in full;
2) failure to promptly and properly investigate the claim;
3) failure to adjust loss properly;
4) failure to act in due diligence and good faith to resolve the claim;
5) placing the financial interest of the Insurer before that of policyholders and claimants;
6) failure to properly train, evaluate and manage adjusters;
7) looking for ways to deny coverage, pay less, delay payment and neglect claim;
Keith Hudson (“the Insured”) chose State Farm Florida Insurance Company (“the Insurer”) to provide his insurance needs. The Insurer issued a Homeowners Policy, No.: 59CWC0985 (“the Policy”), effective from September 1, 2022 to September 1, 2023.
On or about September 28, 2022, while the Policy was in full force and effect, the property located at 1730 Oakmont Lane, Orlando, Florida 32804 (“the Property”) sustained roof and interior damages due to Hurricane Ian. The hurricane damages to the covered property were sudden and accidental, and therefore, a covered peril under the Policy.
The Insured notified the Insurer of the loss and the Insurer assigned claim number 59-39V0-34D. The Insured took action to mitigate the damages to the property and fully cooperated with the Insurer’s investigation. During the course of the Insurer’s investigation, the Insured made the property available for inspection, provided facts and information surrounding the loss, and complied with the Insurer’s adjustment of the claim.
On or about November 3, 2022, State Farm issues payment for the claim in the amount of $39,561.31.
On or about November 12, 2022, a field adjuster for State completed a site visit.
On or about November 15, 2022, the Insurer issued payment for the supplement for additional damages in the amount of $3,964.39.
On or about December 27, 2022, State Farm issued payment for additional living expenses in the amount of $1,567.44 that covers the rent between November 19, 2022 to November 30, 2022.
On or about January 6, 2023, the Insurer sent additional payment due for the balance of the structural damage in the amount of $60.00.
On or about January 11, 2023, State Farm issued payment for additional living expenses in the amount of $4,413.71 that covers the rent between December 1, 2022 to December 30, 2022.
On or about January 17, 2023, the Insurer sent payment for tarping of roof and for mitigation services for the amount of $2,675.06.
On or about February 4, 2023, State Farm issued a reimbursement for the payment of the invoice for the amount of $4,676.97.
On or about March 2, 2023, the Insurer issued payment for additional living expenses in the amount of $4,143.36 to cover the February hotel invoice.
On or about April 6, 2023, the Insurer sent payment for the additional cost of siding in the amount of $7,806.78.
On or about December 28, 2023, State Farm issued payment in the amount of $27,000.00 to cover the Temporary Housing between March 2023 to December 2023.
On or about February 13, 2024, the Insurer issued payment for January and February rent for the amount of $5,400.00.
On or about February 19, 2024, Coverage A Asbestos Abatement has been paid for the Insurer in the amount of $13,132.15.
On or about February 28, 2024, State Farm issued payment for Coverage B Storage Unit Rental Charges from December 2023 to February 2024 in the amount of $870.73.
On or about March 6, 2024, the Insurer issued payment for Coverage C – Additional Living Expense for temporary housing costs for March 2024 for the amount for $2,700.00.
On or about June 28, 2024, State Farm sent a repair estimate to the Insured and it would amount to $81,031.79, minus the policy’s $5,762.00 deductible, less $5,972.43 depreciation, and less $1,194.52 General Contractor Overhead. Therefore, State Farm would issue payment for the claim in the amount of $68,102.85.
On or about June 29, 2024, State Farm issued payment in the amount of $12,345.16 for the supplement for temporary repairs, moving cost, storage rentals, and lodging through June 30, 2024.
On or about July 10, 2024, the Insurer issued $2,966.50 to the Insured for Coverage C lodging and storage fees for the month of July. State Farm sent a Summary of Loss and determined that the damages were only $140,289.36, minus the policy’s $5,762.00 deductible, and less than $131,560.86 prior payments.
On or about September 11, 2024, Insured requested from the Insurer to have his hurricane loss appraised.
On or about September 16, 2024, State Farm sent a Summary of Loss calculating the coverage of the loss. As such, State Farm determined that the damages were only $147,354.94, minus the policy’s $5,762.00 deductible, and less than $134,527.36 prior payments. Therefore, State Farm would issue payment for the claim in the amount of $7,065.58. Aside from the previous letter sent, State Farm also sent a separate letter denying request for appraisal.
On or about September 17, 2024, the Insured retained Boltz Legal to assist with the Insured’s claim. In return Boltz Legal sent a formal Letter of Representation to the Insurer on behalf of the Insured.
On or about September 23, 2024, State Farm sent a letter acknowledging receipt of the letter of representation submitted by Boltz Legal.
Subsequently, the Insured provided the Insurer with a repair estimate, along with enclosed photos, evidencing the actual cost to make the reasonable and necessary repairs to return the Insured’s property to its pre-loss condition. The Insured’s estimate valued damages at $469,809.93, minus any deductible(s) and prior payment(s), to bring the Insured back to pre-loss condition.
Upon information and belief, to date, the Insurer has not revised its coverage opinion or tendered the insurance benefits owed to the Insured in relation to the loss -despite the documents provided by the Insured clearly evidencing extensive damage to the property as a result of a covered loss.
The Insurer is bound by the terms of its own Policy and the laws of the State of Florida. Notwithstanding, the Insurer has placed its own financial interests above that of the Insured. In fact, it has become a general business practice of the Insurer to not implement proper claims handling procedures, to routinely ignore or intentionally misidentify relevant evidence, and to not settle claims in good faith when under all circumstances it should have done so.
The Insurer purposely underpaid the Insured’s claim despite clear evidence of Hurricane damage to the covered property. The Insurer came to its coverage determination by ignoring relevant facts and information provided by the Insured and the Insured’s representatives that clearly established the extent of the damages to the roof and interior of the Insured’s residence, which resulted from Hurricane, a covered peril. The Insurer and its agents did not rely on its inspection of the property or any of the documents provided by the Insured in issuing its decision. Instead, the Insurer failed to make a good faith effort to properly evaluate its Insured’s loss and promptly settle the claim. This failure to properly assess the claim was a clear breach of the Insurance Policy and Florida Law.
It is clear that the Insurer has not acted honestly or fairly toward its Insured. The Insurer and its agents failed to conduct a proper investigation of the loss, misrepresented the scope and cause of damages at the Insured’s residence, and misapplied policy provisions in order to deny coverage for the Insured’s claim.
As is the case here, it is a pattern and practice of the Insurer to arbitrarily underpay claims without conducting reasonable investigations based upon the information and evidence available to it.
The Insurer is bound to conduct itself with the utmost good faith for the benefit of the Insured. However, the Insurer has failed to comply with its obligations in connection with this claim and has never looked at the claim or the contract for insurance with good faith and fair dealing. Instead, the Insurer has looked for ways not to pay the claim in full and these actions have been to the detriment of the Insured. The Insurer’s conduct has been reckless and unfair to the Insured. This is evidenced by the delay in paying the claim, denial and/or underpayment of the claim, and the Insurer’s failure to evaluate the claim in total. The Insurer has refused and/or failed to comply with the Policy’s cooperation and/or “Loss Payment” provision. Under the Policy, the Insurer was to timely tender owed insurance benefits to the Insured. Nevertheless, the Insurer has failed and/or refused to timely tender payment to the Insured. This is a breach of the Policy. The Insurer has a contractual obligation to conduct a proper investigation of the loss, not ignoring evidence that would support the claim of the Insured. Failure to do so is a breach of the Policy. The Insurer has a contractual obligation to not look the other way when confronted with facts revealing the possibility of coverage and to not resist reasonable interpretations of its Policy. The concept of insurance is that insurance is the Insurer’s granting of timely and prompt indemnity or security against a contingent loss.
In order to remedy the situation, State Farm Florida Insurance Company must immediately tender the full amount of insurance benefits owed to the Insured for damage to covered property in the amount of $469,809.93 less any deductible(s) and prior payment(s), to bring the Insured back to pre-loss condition.
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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.
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DFS-10-363
Rev. 10/14/2008
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