Civil Remedy Notice of Insurer Violations
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Filing Number:     794298
Filing Accepted:  11/26/2024
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Complainant
Last/Business Name *  
HILL/GODFREY   First Name   TINA AND BRENDA
Street Address * 3216 LITTLEFIELD ST
City, State Zip * DELTONA, FL 32738
Email Address * BGODFREY73@YAHOO.COM
Complainant Type: * Insured
Insured
Last/Business Name*   HILL/GODFREY   First Name   TINA AND BRENDA
Policy # * 161224953 Claim #* 0767374564
Attorney
Attorney is Applicable
Last Name* UY First Name * BRYCE Initial J
Street Address* 350 N LAKE DESTINY ROAD.
City, State Zip* MAITLAND , FLORIDA 32751
Email Address * BUY@ITSABOUTJUSTICE.LAW
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   CASTLE KEY INDEMNITY COMPANY
NAIC Company Code 10835
 
Name of individual responsible for violation (if any):* STEVEN TRELOAR
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
Claim Delay
Claim Denial
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.
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)(2) A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy.
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)(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.

• Section 1 Property Coverages – Coverage A – Dwelling • Section 1 Perils Insured Against – Coverage A – Dwelling and Coverage B- Other Structures • Section 1- Conditions – 3. Loss Settlement • Section 1 – Conditions – 10. Loss Payment
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

On or about June 6, 2024 the Insureds, Tina Hill and Brenda Godfrey, suffered significant damage to their home located at 3216 Littlefield St, Deltona, Florida 32738 as a result of Storm/Wind Event. Prior to the loss, Castle Key Indemnity Company (“Castle Key”), had issued a policy of insurance (Policy No.: 161224953) for the Insureds’ property. Said policy was in full force and effect on date of loss and afforded coverage for a storm/wind loss. During the weather event, the National Weather Service issued several weather advisory and warnings, including a severe thunderstorm warning affecting coastal Volusia County specifically stating potential to reach 60 MPH winds with “Hail damage to vehicles is expected. Expect wind damage to roofs, siding, and trees.” Castle Key was notified of the loss by the Insureds and assigned claim number 0767374564. During the course of Castle Key’s investigation, the Insureds made the property available for inspection, provided facts and information surrounding the loss, and complied with Castle Key’s adjustment of the claim. Despite fully cooperating with Castle Key’s investigation, Castle Key failed to conduct a thorough assessment of the Insureds’ claim which caused Castle Key to woefully underestimate the scope and cost of repairs. Although Castle Key acknowledged coverage for damage caused by the storm, Castle Key refused to issue payment for the full scope of covered damages. Even though Castle Key knew there was substantial storm/wind damage to the roof that required replacement, Castle Key and its adjusters misrepresented the cause and scope of the damages to the Insureds. It is clear that Castle Key has not acted honestly or fairly towards its Insureds. Castle Key and its adjusters have misrepresented the scope and cause of damages to the residence and misapplied exclusions in the policy in order to deny coverage for much of the Insureds’ claim. As is the case here, it has become a general business practice of Castle Key to not implement proper claims handling procedures, to hire consultants that routinely ignore or intentionally misidentify relevant evidence, and to not settle claims in good faith when under all circumstances it should have. Castle Key regularly undervalues claims in order to avoid issuing payment on losses that it knows are covered under the policy. Castle Key also routinely refuses to pay claims in full when it has the ability to do so, waits to see if its insureds contest their coverage determinations, and, only then, will it capriciously invoke appraisal. Castle Key knows that by opening up coverage on only a very small portion of its claims, it can maintain its ability to demand appraisal later on and deprive its insureds access to the courts. Its insureds are then forced to pay the cost of their own appraiser, which can total several thousands of dollars, before it is ever willing to perform repairs or issue benefits that were already owed under the policy. Castle Key has developed this deliberate strategy in order to deter its insureds from challenging its coverage determinations and hinder their ability to seek additional payment for monies owed under the policy. Castle Key’s decision to not adjust losses in good faith in accordance with section 627.70131, Florida Statues, unnecessarily delays resolution of its claims and leaves claimants with no choice but to incur further time and expense just to be fully indemnified. Castle Key has completely abdicated its duty to adjust and has put the onus on its Insureds to spend thousands of dollars in appraisal before Castle Key is willing to issue benefits or make repairs that it knows are owed. Castle Key’s pattern and practice of underrepresenting the actual cost and cause of damages, then demanding appraisal if challenged, is evidence that it does not act fairly or honestly towards the Insureds during its adjustment process and that it has failed to implement proper standards for the investigation and handling of its claims. Castle Key Indemnity Company has produced an estimate of damages in excess of the applicable deductible but has failed to provide a written explanation of coverage, and also failed to provide any payment for damages to the subject property within the sixty (60) days allotted for adjustment of the claim under Fla. Stat. § 627.70131. In order to cure this civil remedy notice, Castle Key must immediately tender $32,577.08 to “Tina Hill and Brenda Godfrey and Cohen Law Group” less any prior payments and deductible. The written acknowledgement should be provided to the Insureds’ counsel, Bryce James Uy, Esq., at 350 N. Lake Destiny Road, Maitland, Florida 32751.
Comments
User Id Date Added Comment
msosg@allstate.com 01-24-2025 Please allow this correspondence to serve as Castle Key Insurance Company’s (hereinafter referred to as “Castle Key”) response to your Civil Remedy Notice of Insurer Violations filing number 794298. This response was uploaded to the DFS CRN website on 1/24/2025 ?.. Castle Key Insurance Company specifically denies the allegations set forth in the Civil Remedy Notice of Insurer Violations. At all times, Castle Key has acted in good faith. Castle Key wholly denies all 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. .. Castle Key does not consider there to have been any manner of violation and questions the validity of the Notice as it fails to meet the requirements set forth in Section 624.155, Florida Statutes and Florida law and thus fails to perfect the insured’s right to pursue civil remedies. The potential statutory violations and information submitted are nothing more than unsupported, baseless allegations. Castle Key notes the CRN fails to reference the specific policy language relevant to the alleged violations or set forth facts in support of each of the alleged violations. This information is required to be included and be correct on the statutory Civil Remedy Notice form. .. Castle Key investigated this loss, and windstorm damage was found during the initial inspection. Castle Key has extended an offer to settle, in exchange for a release and withdraw of CRN with payment totaling $32,792.60. A Florida Mediation letter was also sent to the insured. .. At all times, Castle Key Insurance Company has acted in good faith in investigating and handling the claim. Castle Key Insurance Company has not breached any duty owed to you. .. Nothing herein constitutes, nor should it be construed as, a waiver of any of Castle Key’s rights of under its policy of insurance, nor is it the purpose of this letter to waive any of the policy’s terms and conditions. Further, no action or inaction by Castle Key should be construed as a waiver of any of its legal defenses, including but not limited to the right to be served with a compliant Notice.
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.

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