Filing Number: 797206
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| Filing Accepted: 12/17/2024 |
| Last/Business Name
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| Street Address
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13347 OLD FLORIDA CIRCLE |
| City, State Zip
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HUDSON,
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34669
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| Email Address
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CFAUNTLEROY@FSATLAW.COM |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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WING |
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First Name |
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TYLER |
| Policy # * |
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HOH621105 |
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Claim #* |
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H010025770 |
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Attorney is Applicable
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| Last Name* |
FAUNTLEROY
First Name *
CHRISTOPHER
Initial
B
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| Street Address* |
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100 S ASHLEY DRIVE, SUITE 600 |
| City, State Zip* |
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TAMPA
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FLORIDA
33602
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| Email Address * |
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CFAUNTLEROY@FSATLAW.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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HERITAGE PROPERTY & CASUALTY 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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,
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NAIC Company Code 14407 |
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| Name of individual responsible for violation (if any):*
RENEE GILMORE AND HERTIGAGE AND TIS ADJUSTERS
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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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Claim Delay
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Unsatisfactory Settlement Offer
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Unfair Trade Practice
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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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| 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)(e) |
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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.
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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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| 626.9541(1)(i)(3)(g) |
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Failing to promptly notify the insured of any additional information necessary for the processing of a claim.
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| 626.9541(1)(i)(3)(h) |
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Failing to clearly explain the nature of the requested information and the reasons why such information is necessary.
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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.
Reference specific policy language that is relevant to violation:
COVERAGE A – DWELLING
COVERAGE A – Dwelling
We cover:
1. The dwelling on the "residence premises" shown in
the Declarations, including structures attached to
the dwelling; and
2. Materials and supplies located on or next to the
"residence premises" used to construct, alter or
repair the dwelling or other structures on the "residence
premises."
This coverage does not apply to land, including land
on which the dwelling is located.
Loss Settlement
3. Loss Settlement.
Paragraphs b.(4) and (5) have been deleted and
replaced by the following:
(4) We will initially pay at least the actual
cash value of the insured loss, less any
applicable deductible. We will pay any
remaining amount necessary to
perform such repairs as work is
performed and expenses are incurred.
If a total loss of a building or structure
insured under this policy occurs, we will
pay the replacement cost coverage
without reservation or holdback of any
depreciation in value, subject to policy limits.
Loss Payment
10.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 60 days after we receive
your proof of loss and:
a. Reach an agreement with you;
b. There is an entry of a final judgment; or
c. There is a filing of an appraisal award with us.
10. 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. In the event that
any repair services were performed under the Our
Option provision, we will pay the retained contractor
directly for those services or part or portion of any
services the retained contractor performs or provides.
For all other claims payments, we will pay you unless
some other person is named in the policy or is legally
entitled to receive payment.
Loss will be paid upon the earliest of the following:
a. 20 days after we receive your written proof of
loss and reach a written, executed agreement of
settlement with you according to the terms of the
written agreement;or
b. Within 60 days after we receive your proof of loss;
and:
(1) There is an entry of a final judgment or,
in the case of an appeal from such judgment,
within 60 days from and after the affirmance
of the same by the appellate court; or
(2) There is a written executed mediation
settlement with us according to the terms of
the written mediation settlement; or
(3) There is a filing of an appraisal award with us;
or
c. Within 60 days after we receive notice of an initial
claim, “reopened claim” or “supplemental claim”
from you, we will pay or deny such claim or
portion of the claim unless the failure to pay such
claim or portion of claim is caused by factors
beyond our control which reasonably prevent
such payment.
Our failure to comply with this paragraph shall
not form the sole basis for an action against us for
breach of contract under this policy or for benefits under
this policy.
***ADDITIONAL STATUTORY PROVISIONS ALLEGED TO HAVE BEEN VIOLATED ARE AS FOLLOWS:***
§624.155(1)(B)(1) Any person may bring a civil action against an insurer when such person is damaged:
By the commission of any of the following acts by the insurer:
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 towards its insured and with due regard for her interests;
2. Making claims payments to insures or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made; or
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.
§624.155 (5) No punitive damages shall be awarded under this section unless the acts giving rise to the violation occur with such frequency as to indicate a general business practice and these acts are:
(a) Willful, wanton, and malicious;
(b) In reckless disregard for the rights of any insured; or
(c) In reckless disregard for the rights of a beneficiaries under a life insurance contract;
(8) The damages recoverable pursuant to this section shall include those damages which are a reasonably foreseeable result of a specified violation of this section by the authorized insurer and may include an award or judgment in an amount that exceeds the policy limits.
§627.70131 Insurer’s duty to acknowledge communications regarding claims; investigation
(1)(a) Upon an insurer’s receiving a communication with respect to a claim, the insurer shall, within 14 calendar days, review and acknowledge receipt of such communication unless payment is made within that period of time or unless the failure to acknowledge is caused by factors beyond the control of the insurer which reasonably prevent such acknowledgement. If the acknowledgement is not in writing, a notification indicating acknowledgement shall be made in the insurer’s claim file and dated. A communication made to or by an agent of an insurer with respect to a claim shall constitute communication to or by the insurer.
(4) For purposes of this section, the term “insurer” means any residential property insurer.
§626.9541(i) Unfair Claim Settlement Practices
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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.
In Florida, the work of adjusting insurance claims engages the public trust. Heritage Property & Casualty Insurance Company (Heritage) has breached this duty in the adjustment of Tyler Wing’s (Wing’s) claim.
Heritage has failed to adopt and implement proper standards for investigation, evaluation and adjustment of claims; has failed to properly train, manage, supervise and promote claims adjusters so that policy holder receives good faith, fair, prompt adjustment of claim, service and indemnity; has failed to conduct a full and fair investigation of the claim and has failed to provide full reasons and facts to the claimant for delay of the claim resulting in statutory violations as set forth in this notice.
Furthermore, Heritage has engaged in unfair claim delay; has used business or outcome-oriented investigations and experts to determine the outcome of the claim; has wrongfully denied the claim without fully stating reasons and reserving unwritten reasons; has looked for ways to, delay payment and otherwise “stonewall” the claim; and has used improper claims practices to rush the claims process and profit from wrongful claims practices.
Wing’s claim results from wind and water damage to the roof and interior of his home from Hurricane Helene that occurred on September 26, 2024, which consequentially resulted in missing and loose shingles throughout the roof, as well as water damage to the interior of the home.
In an effort to immediately mitigate the damages to his home, Wing contacted his insurance company, Heritage, to report the damages to his home. As part of their investigation, Heritage assigned a claim number H010025770 and desk adjuster Renee Gilmore (Gilmore) to adjust the loss. As part of the investigation of Wing’s claim, Heritage’s adjuster assigned a field adjuster to inspect the damages to Wing’s home. Subsequently, Heritage sent correspondence on October 2, 2024, in which they partially denied Wing’s claim, stating that they would not provide payment to complete repairs to the flooring or the garage since their inspection revealed that the condition of the flooring and garage was due to wind-driven rain and ground water. Therefore, they issued payment in the amount of $9,683.58 to repair the damages, which is insufficient coverage to return Wing’s property back to pre-loss condition.
In view of the foregoing, it is clear and unequivocal that Heritage has failed to provide proper and sufficient compensation to repair the damages caused to Wing’s property. Due to Heritage’s handling of Wing’s claim, Wing chose to retain Fairwinds Construction Services, LLC, to further assess the damages to his home. As such, upon inspection and view of the damages, it was clear that the roof and interior of the property required extensive repair. After the inspection, Fairwinds Construction Services, LLC, provided an estimate for repairs in the amount of $54,683.40, which is the full amount to return Wing’s home back to pre-loss condition. Heritage continues to hold their stance for their claim determination concerning Wing’s loss.
Wing complied with all conditions under the policy. Nonetheless, Heritage continues to fail to properly compensate Wing for his loss. The facts of this claim show that for whatever reason, Heritage not only substantially misinterpreted the scope of damages to Wing’s property but failed to conduct a thorough investigation as to the scope of damages to the roof and interior. Upon view of Heritage’s claims handling procedures, it is clear Heritage conducted a limited and quick outcome orientated investigation in the hopes that Wing would make the required repairs with his own money. Wing now must incur costs for assistance to obtain what should have been paid had he been treated fairly and honestly by Heritage.
Further, in view of the facts surrounding Wing’s claim it is evident that Heritage has failed to create and implement adequate guidelines for proper investigations to evaluate claims handling for training and supervision of employees in violation of Fla. Stat. §624.155 and §626.9541 statutory regulations, as well as the applicable provisions in the Florida Administrative Code resulting in the statute violations set forth herein. As stated, Heritage has failed and/or refused to thoroughly, accurately and completely investigate the insured’s claim for damages.
The concept of insurance is that insurance is the insurer’s granting of timely and prompt indemnity or security against a contingent loss. Florida statute §624.02 defines “insurance” as a contract whereby one undertakes to indemnify another or pay or allow a specified amount or a determinable benefit upon determinable contingencies. Inherent is the fact that payment must be made timely and promptly so that the insured may mitigate their damages and be put back into the position they were in prior to loss as quickly as possible. Heritage has breached this duty. The insured was, and still is, forced to expend out of pocket monies to submit her insurance claim, e.g., retaining legal counsel, to force Heritage to honor its obligations under the insurance policy to pay all the insurance proceeds due and owing the insured.
Furthermore, Heritage has failed to adopt and implement proper standards for investigation, evaluation and adjustment of claims; has failed to properly train, manage, supervise and promote claims adjusters so that policy holder receives good faith, fair, prompt adjustment of claim, service and indemnity; has failed to conduct a full and fair investigation of the claim.
Florida Statutes violated by Heritage are as applied to the facts in this matter is as follows: § 626.951 engaging in acts defined as “unfair trade practices” relating to the business of insurance in accordance with the intent of congress as expressed in the act of congress of March 9, 1945 (pub. L. No. 15, 79th congress), by defining, or providing for the determination of, all such practices in this state which constitute unfair methods of competition or unfair or deceptive acts or practices and by prohibiting the trade practices so defined or determined.
§ 624.155(1)(b)(1) to tender all insurance proceeds monies due and owing the insured or assist the insured in the mitigation of their damages. The insurer breached these statutory duties. Not attempting in good faith to settle claims when, under all circumstance, insurer could have and should have done so, had the insurer acted fairly and honestly toward its insured and with due regard. § 624.155(1)(b)(3) failing to promptly settle claims, when the obligation to settle the 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 investigations of claims. § 626.9541(1)(i)(3)c Failing to acknowledge and to act promptly upon communications with respect to claims.
Their actions are willful, wanton and in disregard of the rights of its insured and occur with such a frequency as to indicate a general business practice. Heritage can cure this default by the following:
A. Create, adopt and implement adequate standards and/or guidelines for the proper investigation and adjustment of claims.
B. Provide sufficient training and supervision of employees and agents to avoid further violations as set forth in the paragraphs above from occurring in the future.
C. Tender payment to Wing in the amount of $54,683.40 which is the amount to return Wing’s home back to pre-loss condition.
D. Tender prejudgment interest from the date the claim was reported through today.
E. Agree to pay Wing’s reasonable attorney’s fees pursuant to Florida Statute §627.428, and the applicable law at the time that the subject claim was filed and all taxable costs.
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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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