Filing Number: 789454
|
| Filing Accepted: 10/30/2024 |
| Last/Business Name
*
|
|
|
BECK CUSTOM EXTERIORS, INC.
|
|
First Name |
|
|
|
| Street Address
*
|
|
476 PLEASANT OAKS TRAIL |
| City, State Zip
*
|
|
OSTEEN,
FL
32764
|
| Email Address
*
|
|
BO.SUTTON@THOMPSONJAGLAL.COM |
| Complainant Type:
*
|
|
Insured |
|
| Last/Business Name* |
|
BECK CUSTOM EXTERIORS, INC. |
|
First Name |
|
|
| Policy # * |
|
GLP 0200639 00 - 03 |
|
Claim #* |
|
120709 |
|
Attorney is Applicable
|
| Last Name* |
SUTTON
First Name *
ROUSELLE
Initial
A
|
| Street Address* |
|
4767 NEW BROAD STREET |
| City, State Zip* |
|
ORLANDO
,
FLORIDA
32814
|
| Email Address * |
|
BO.SUTTON@THOMPSONJAGLAL.COM |
|
|
| Insurer Type
*
|
|
 Authorized Insurer
 Unauthorized Insurer
|
|
|
| Insurer Name |
|
|
| Insurer Name* |
|
AMERICAN BUILDERS INSURANCE COMPANY
|
| Insurer Name* |
|
|
| Street Address* |
|
|
| City, State Zip* |
|
,
|
|
NAIC Company Code 11240 |
|
|
| Name of individual responsible for violation (if any):*
TIM WALTON
|
| Type of Insurance
*
Commercial Property & Casualty
|
|
|
| Reason for Notice
*
|
|
|
Claim Denial
|
|
|
Claim Delay
|
|
|
Unfair Trade Practice
|
|
|
*
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)(a) |
|
Failing to adopt and implement standards for the proper investigation of claims.
|
|
| 626.9541(1)(i)(3)(c) |
|
Failing to acknowledge and act promptly upon communications with respect to claims.
|
|
| 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.
|
|
*
Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
Association Insurance Company and American Builders Insurance Company has refused to resolve a lawsuit made against its insured.
Association Insurance Company and American Builders Insurance Company has refused to defend its insured against a pending lawsuit.
|
| |
*
Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
Beck Custom Exteriors, Inc. performed work to construct a home located at 11203 Spring Gale Trail, Bradenton, FL 34211. Beck Custom Exteriors, Inc. acted as the stucco subcontractor to Mattamy Homes on the project. Beck Custom Exteriors, Inc.’s work was complete during Association Insurance Company’s and American Builders Insurance Company’s policy. Completed Operations Coverage is triggered. Association Insurance Company and American Builders Insurance Company has denied the claim based on coverage reasons not supported by Florida Law.
On June 7, 2024 Ashley Warren filed a Lawsuit in the Twelfth Judicial Circuit for Manatee County Florida under Case No 2024-CA-920 against Mattamy Homes Inc for claims that Mattamy contends arise out of Beck Custom Exteriors, Inc.’s work. Mattamy intends to file suit against Beck Custom Exteriors.
On August 2, 2024, Mattamy sent a demand for contractual indemnity, defense and to be held harmless by Beck Custom Exteriors. Included in that demand is that Mattamy be treated as an Additional Insured under the Association Insurance Company’s and American Builders Insurance Company’s policies.
On August 2, 2024 Beck Custom Exteriors, Inc. tender the claim to its insurers (Association Insurance Company’s and American Builders Insurance Company’s policy ) and requested protection, indemnity and defense. For purposes of this Civil Remedy Notice, those insurers are:
Association Insurance Company
GLP 0200639 00
9/26/2015 – 9/26/2016
American Builders Insurance Company
GLP 0200639 01
9/26/2016 – 9/26/2017
GLP 0200639 02
9/26/2017 – 9/26/2018
GLP 0200639 03
9/26/2018 – 9/26/2019
On October 10, 2024, Association Insurance Company and American Builders Insurance Company issued a claim denial solely based on an incorrect position, not supported by Florida Law in an attempt to avoid fiduciary obligations owed to Beck and possibly to Mattamy:
Reason: The home was built and sold in 2017, then later purchased by the claimants on March 27, 2020 which is after the September 26, 2019 expiration date of the Builders policies issued to Beck. As such, no coverage is provided under the policy as the claim does not constitute “property damage” caused by an “occurrence” in the policy period. Builders must disclaim any obligation to indemnify Beck for this matter.
Coverage under the policy is predicated upon an “occurrence” producing “property damage” during the policy period. Any damages which are defective workmanship are not considered “property damage” caused by an “occurrence” and the cost to repair Beck's defective workmanship would not be covered. The Claimants purchased the property in question on March 27th. 2020, which is after the September 26, 2019 expiration date of the policy. As such. no “occurrence” resulting in “property damage” could have taken place during the policy period and coverage is denied.
Response: While the timing of the subsequent purchaser’s purchase is correct, the home would have been damaged during Association Insurance Company’s and American Builders Insurance Company’s policies. When a particular person is/was an owner has no bearing on whether the occurrence under the policy is a covered loss. Association Insurance Company’s and American Builders Insurance Company’s coverage position is completely unfounded under Florida law applicable to insurance coverage. Under the policy, the Occurrence is at time of the damage to other property. Here, that would be the paint, sealant, etc. The damage to other property is not tied to who owns the property at a given point of time. It is the other property that has been damaged and requires repair, not who owns the property. A request was made to Association Insurance Company and American Builders Insurance Company for any Florida case law that holds that a homeowner must be the owner during a policy period in order to be compensated for damage to the home that occurred during that policy period. No response was provided. No defense is being provided.
Currently, litigation is pending and Association Insurance Company and American Builders Insurance Company have refused to: defend its insured as required by the policies and to resolve the claim in good faith. The Association Insurance Company and American Builders Insurance Company adjuster is acting in bath faith, by, among other things, invoking and relying on coverage positions not supported by Florida law. Association Insurance Company’s and American Builders Insurance Company’s actions have willfully, wantonly, and maliciously placed their own interest above that of its insured Beck Custom Exteriors, Inc. Association Insurance Company and American Builders Insurance Company, and the handling adjuster Tim Walton should be sanctioned for the bad faith claim handling. Because of the blatant bad faith, Beck Custom Exteriors has had to resort to the Civil Remedy Notice process. Upon request, all correspondence referenced above will be provided.
|
|
|
*
|
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
|