Filing Number: 798834
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| Filing Accepted: 1/2/2025 |
| Last/Business Name
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SWAN LAKE CLUB, INC.
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First Name |
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| Street Address
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5435 JAEGER RD., UNIT 4 |
| City, State Zip
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NAPLES,
FL
34109
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| Email Address
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LORI@WEGMANDESIGNGROUP.COM |
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Insured |
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| Last/Business Name* |
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SWAN LAKE CLUB, INC. |
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First Name |
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| Policy # * |
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1492370566 |
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Claim #* |
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05000001538 |
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Attorney is Applicable
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| Last Name* |
MCINTYRE
First Name *
GARRETT
Initial
W
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| Street Address* |
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1520 ROYAL PALM SQUARE BLVD., SUITE 210 |
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FORT MYERS
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FL
33919
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| Email Address * |
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GARRETT@MBCOUNSEL.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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FRONTLINE INSURANCE UNLIMITED COMPANY
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| Insurer Name* |
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| Street Address* |
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,
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NAIC Company Code 10074 |
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| Name of individual responsible for violation (if any):*
AARON SCOTT, JOHN MOSES, CAROL CRUMP, KRISTIN FITCH, BETH SPEED
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| Type of Insurance
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Commercial Property & Casualty
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| Reason for Notice
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Claim Denial
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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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| 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)(d) |
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Denying claims without conducting reasonable investigations based upon available information.
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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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| 626.9541(1)(i)(4) |
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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).
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| 626.9541(1)(i)(3)(i) |
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Failing to pay personal injury protection insurance claims within the time periods required by s. 627.736(4)(b).
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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.
A. Coverage
We will pay for direct physical loss of or damage to
Covered Property at the premises described in the
Declarations caused by or resulting from any Covered
Cause of Loss.
1. Covered Property
Covered Property, as used in this Coverage
Part, means the type of property described in
this section, A.1., and limited in A.2., Property
Not Covered, if a Limit of Insurance is shown in
the Declarations for that type of property.
a. Building, meaning the building or structure
described in the Declarations, including:
(1) Completed additions;
(2) Fixtures, outside of individual units,
including outdoor fixtures;
(3) Permanently installed:
(a) Machinery; and
(b) Equipment;
(4) Personal property owned by you that is
used to maintain or service the building
or structure or its premises, including:
(a) Fire-extinguishing equipment;
(b) Outdoor furniture;
(c) Floor coverings; and
(d) Appliances used for refrigerating,
ventilating, cooking, dishwashing or
laundering that are not contained
within individual units;
(5) If not covered by other insurance:
(a) Additions under construction, alterations
and repairs to the building or
structure;
(b) Materials, equipment, supplies, and
temporary structures, on or within
100 feet of the described premises,
used for making additions, alterations
or repairs to the building or
structure; and
(6) Any of the following types of property
contained within a unit, regardless of
ownership, if your Condominium Association
Agreement requires you to insure
it:
(a) Fixtures, improvements and alterations
that are a part of the building or
structure; and
(b) Appliances, such as those used for
refrigerating, ventilating, cooking,
dishwashing, laundering, security or
housekeeping.
But Building does not include personal
property owned by, used by or in the care,
custody or control of a unit-owner except for
personal property listed in Paragraph
1) A.1.a.(6) above.
e. Outdoor Property
You may extend the insurance provided by
this Coverage Form to apply to your outdoor
fences, radio and television antennas
(including satellite dishes), trees, shrubs
and plants (other than "stock" of trees,
shrubs or plants), including debris removal
expense, caused by or resulting from any of
the following causes of loss if they are Covered
Causes of Loss:
(1) Fire;
(2) Lightning;
(3) Explosion;
(4) Riot or Civil Commotion; or
(5) Aircraft.
4. Loss Payment
a. In the event of loss or damage covered by
this Coverage Form, at our option, we will
either:
(1) Pay the value of lost or damaged property;
(2) Pay the cost of repairing or replacing the
lost or damaged property, subject to b.
below;
(3) Take all or any part of the property at an
agreed or appraised value; or
(4) Repair, rebuild or replace the property
with other property of like kind and quality,
subject to b. below.
We will determine the value of lost or damaged
property, or the cost of its repair or
replacement, in accordance with the applicable
terms of the Valuation Condition in
this Coverage Form or any applicable provision
which amends or supersedes the
Valuation Condition.
b. The cost to repair, rebuild or replace does
not include the increased cost attributable
to enforcement of any ordinance or law
regulating the construction, use or repair of
any property.
c. We will give notice of our intentions within
30 days after we receive the sworn proof of
loss.
d. We will not pay you more than your financial
interest in the Covered Property.
e. We may adjust losses with the owners of
lost or damaged property if other than you.
If we pay the owners, such payments will
satisfy your claims against us for the owners'
property. We will not pay the owners
more than their financial interest in the Covered
Property.
f. We may elect to defend you against suits
arising from claims of owners of property.
We will do this at our expense.
g. We will pay for covered loss or damage to
Covered Property within 30 days after we
receive the sworn proof of loss, if you have
complied with all of the terms of this Coverage
Part and:
(1) We have reached agreement with you
on the amount of loss; or
(2) An appraisal award has been made.
If you name an insurance trustee, we will
adjust losses with you, but we will pay the
insurance trustee. If we pay the trustee, the
payments will satisfy your claims against
us.
8. Valuation
We will determine the value of Covered Property
in the event of loss or damage as follows:
a. At actual cash value as of the time of loss
or damage, except as provided in b. and c.
below.
b. If the Limit of Insurance for Building satisfies
the Additional Condition, Coinsurance,
and the cost to repair or replace the damaged
building property is $2,500 or less, we
will pay the cost of building repairs or replacement.
The cost of building repairs or replacement
does not include the increased cost attributable
to enforcement of any ordinance or
law regulating the construction, use or repair
of any property. However, the following
property will be valued at the actual cash
value even when attached to the building:
(1) Awnings or floor coverings;
(2) Appliances for refrigerating, ventilating,
cooking, dishwashing or laundering; or
(3) Outdoor equipment or furniture.
c. Glass at the cost of replacement with
safety-glazing material if required by law.
h. "Fungus", Wet Rot, Dry Rot And
Bacteria
Presence, growth, proliferation, spread or
any activity of "fungus", wet or dry rot or
bacteria.
But if "fungus", wet or dry rot or bacteria results
in a "specified cause of loss", we will
pay for the loss or damage caused by that
"specified cause of loss".
This exclusion does not apply:
1. When "fungus", wet or dry rot or bacteria
results from fire or lightning; or
2. To the extent that coverage is provided
in the Additional Coverage – Limited
Coverage For "Fungus", Wet Rot, Dry
Rot And Bacteria with respect to loss or
damage by a cause of loss other than
fire or lightning.
E. Additional Coverage – Limited Coverage For
"Fungus", Wet Rot, Dry Rot And Bacteria
1. The coverage described in E.2. and E.6. only
applies when the "fungus", wet or dry rot or
bacteria is the result of one or more of the following
causes that occurs during the policy period
and only if all reasonable means were
used to save and preserve the property from
further damage at the time of and after that occurrence.
a. A "specified cause of loss" other than fire or
lightning; or
b. Flood, if the Flood Coverage Endorsement
applies to the affected premises.
2. We will pay for loss or damage by "fungus",
wet or dry rot or bacteria. As used in this Limited
Coverage, the term loss or damage
means:
a. Direct physical loss or damage to Covered
Property caused by "fungus", wet or dry rot
or bacteria, including the cost of removal of
the "fungus", wet or dry rot or bacteria;
b. The cost to tear out and replace any part of
the building or other property as needed to
gain access to the "fungus", wet or dry rot
or bacteria; and
c. The cost of testing performed after removal,
repair, replacement or restoration of the
damaged property is completed, provided
there is a reason to believe that "fungus",
wet or dry rot or bacteria are present.
2. Water Damage, Other Liquids, Powder Or
Molten Material Damage
If loss or damage caused by or resulting from
covered water or other liquid, powder or molten
material damage loss occurs, we will also pay
the cost to tear out and replace any part of the
building or structure to repair damage to the
system or appliance from which the water or
other substance escapes. This Coverage Extension
does not increase the Limit of Insurance.
3. Glass
a. We will pay for expenses incurred to put up
temporary plates or board up openings if
repair or replacement of damaged glass is
delayed.
b. We will pay for expenses incurred to remove
or replace obstructions when repairing
or replacing glass that is part of a building.
This does not include removing or replacing
window displays.
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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.
Swan Lake Club, Inc., (hereinafter “Swan Lake”) is comprised of a condominium association located in Naples, Florida. Swan Lake Club, Inc. includes six (6) structures. One (1) of the structures is a pool house, and the remaining five (5) are residential structures that contain eight (8) units per building, for a total of forty (40) residences within the association. The association is governed by a board of directors, which has in turn employed a number of property management companies over the years to handle the day-to-day needs of the association members.
This dispute involves a wind insurance claim filed by Swan Lake Club, Inc. in the aftermath of Hurricane Ian. As all Floridians are keenly aware, Ian made landfall as a strong Category 4, almost Category 5, hurricane on September 28, 2022, just ever so slightly north of Naples. This resulted in Naples, FL receiving some of the worst winds associated with the Hurricane. Ian brought with it devastating winds to the entire region, and left many folks, such as my client’s members, with extensive damage. Swan Lake made monumental efforts to quickly report, document, quantify, and remediate the damage caused by the storm. This included taking hundreds of photographs, obtaining reports from numerous experts (including engineers), obtaining estimates for the repair work, engaging remediation companies within hours, and otherwise making sure the damage was addressed in a swift manner. I can candidly say that in my years of litigating insurance related disputes, Swan Lake by far has some of the most well documented and well mitigated damage that can be found anywhere in the State of Florida. This is in large part due to the herculean efforts of its board members. Unfortunately, the effort has not been reciprocated by Frontline Insurance.
The insurance carrier for which a policy was in effect at the time of Hurricane Ian was Frontline Insurance Unlimited (“Frontline”). Frontline has acknowledged the initial claim that was filed by Swan Lake and assigned Claim No.: 05000001538 to the same on or about October 17, 2022, or more than two years ago. Swan Lake, its board, and its legal counsel have all submitted significant documentation associated with the loss and otherwise made dozens of well documented requests to Frontline for the funds needed to mitigate the damage, such as the damaged roofs, HVAC systems, windows, doors, building facades, outdoor lighting, and more. Frontline Insurance initially agreed to issue payment for certain portions of the loss, and the same was remitted primarily for the cost of temporary roofing and a minimal amount per residential building to cover the roof replacements. The TPO roofing that has been used as a temporary roof is now severely deteriorated. Along with numerous other systems present on the property, the damaged roofs constitute a clear covered loss. In many regards, Frontline Insurance has initially agreed with this assertion in writing to the legal counsel for Swan Lake and during numerous telephonic meetings with the revolving carousel of third parties and adjusters that have been hired by Frontline, but has woefully failed to provide adequate payment under the initial claim and likewise has failed or refused to address the timely supplements provided to Frontline.
After Swan Lake retained the law firm of McIntyre & Bermudez, PLLC, the firm immediately worked to provide Frontline with supplemental documentation and provided an initial series of detailed supporting documents on March 25, 2024. The same included 170 pages of supporting records, such as the previously disclosed engineering report, an updated and detailed Xactimate estimate for all of the wind related damage, updated invoices from an HVAC contractor, updated invoices from an electrical contractor, and other relevant supporting documentation. This submission was in relation to the original claim and was not intended as a formal “supplemental” claim. The March 25, 2024, submission constituted a far more detailed submission that more accurately identified and quantified the damage that was present at the time of the covered loss. The March 25, 2024, submission also made a demand for payment from Frontline for an amount in dispute of $2,268,584.16.
The months that followed the March 25, 2024, submission largely consisted of Frontline asking to conduct roof inspections, a singular HVAC inspection by HVACi (a company hired by Frontline) of exactly one (1) HVAC unit (despite Swan Lake claiming damage to well over a dozen HVAC units), a series of interior inspections focused on the ceilings of the second floor units (20 total), a two (2) day long engineering inspection conducted by a licensed engineer hired by Frontline and its adjuster at the time Carol Crump (for which no report has ever been provided to the insured), a follow up site inspection with third party consultants allegedly hired by Frontline and Carol Crump - which also included access to the roof and access to a number of unit interiors, the provision of a Supplemental Sworn Proof of Loss by Swan Lake, and an Examination Under Oath (EUO), which occurred on November 21, 2024. All said, both Swan Lake and the firm they retained attended somewhere between 5-7 onsite inspections of the property, countless conference calls with adjusters, countless conference calls with the consultants allegedly retained by Frontline, responded to dozens and dozens of emails and written requests made by Frontline and its ever revolving carousel of adjusters, and provided every piece of documentation imaginable to support the claim.
During that time, Swan Lake also provided estimates, invoices, proofs of payment, ledgers, and other documentation to address, update, or supplement the following:
1) Damage and deterioration to the windows and doors of the units. The buildings sustained significant wind damage, which included damage to the exterior windows and doors. This was evidence by damages seals, abrasive damage to the windows (“sandblasting”), and warping or bowing of some windows and doors.
2) Updated and signed roofing estimates for the replacement of the roofs on the five (5) primary residential buildings present on the property.
3) New estimates for HVAC replacement of numerous units. After Hurricane Ian approaching twenty (20) or more units have failed due to brown outs, stress caused to the compressors by high winds, and other electrical failures directly traceable to the storm.
4) A bid for additional roof strapping, which is required under new ordinances and building codes that have gone into effect since the roof was originally installed.
5) A GAF system certification that outlines the specification of the required roofing systems for the buildings, and which comports with the updated roof estimates.
6) A lighting bid for the outdoor lighting that Swan Lake must maintain. This has been recently updated, and has now required additional engineering such that the same will be compliant with building codes and local ordinances.
7) Invoices / bids for new screens and metal that are necessary for various screen enclosures that have been damaged or destroyed.
8) Paint and stucco invoices / bids for the painting of the exterior and stucco replacement where the building envelope was impacted by debris, high winds, and the sandblasting referenced above.
Swan Lake has strictly complied with every post lost request made by Frontline Insurance. They have meticulously documented the costs and estimates associated with the initial remediation / mitigation, tear out efforts, and the required rebuild. Swan Lake has likewise provided Frontline with continuous and unrestricted access to the property since filing the claim in October of 2022. Despite these efforts and careful compliance with the terms of the policy of insurance, and other than an initial confirmation that the supplemental documents were received, Frontline has provided exactly zero (0) payments in response to the March 25, 2024, submission. Adjusters and others working for Frontline have even admitted that they “forgot” they hired HVACi to inspect the HVAC systems, that they forgot the engineer they hired was ever onsite, that they forgot about dozens of pages of invoices that were provided and used at the EUO of Swan Lake, and that they forgot Frontline had previously agreed through its adjuster that the roofs present on the property were indeed "temporary" coverings, and not permanent roofs. How Frontline could conveniently “forget” its own written communications with the insured and years of inspections by numerous parties is an untenable position from which it cannot be permitted to deny the valid claim. Moreover, Frontline has assigned, terminated, and reassigned close to a dozen adjusters, consultants, engineers, and contractors to handle Swan Lake’s claim from October of 2022 to present day. The more recent adjusters have even admitted limited if any familiarity with the claim as a whole and have often exhibited complete ignorance when confronted with simple inquires about the status of the claim and whether or not a supplemental payment is forthcoming to Swan Lake. As a result of this absurdly inappropriate approach to claim handling practices, Swan Lake was left with no option but to file a Notice of Intent to Initiate Litigation (NOI) on September 25, 2024. At the time it was submitted, numerous supporting documents were again re-provided and the amount claimed to be in dispute was $2,268,584.00.
Since filing the NOI, Swan Lake has continued to comply with the requests of Frontline and recently attended an EUO on November 21, 2024. In advance of the EUO, the large swath of documentation was again shared with Frontline, which included more updated estimates, mitigation documents, and other bids related to the covered loss. This documentation was uploaded to a Dropbox folder and shared with Frontline's legal counsel. Despite recognizing receipt of the same and even explicitly referring to said documentation during the EUO, Frontline, through its adjuster and legal counsel, is now claiming they have not seen some of the documents. This position is absurd and patently false. After the EUO concluded, Swan Lake has continued to provide current / updated quotes for items such as the paint work needed on the five (5) structures as well as newly revised quotes for the electrical work needed.
After carefully reviewing all of the documentation generated by Swan Lake, its contractors and its consultants, Swan Lake has carefully submitted troves of documentation to assert that the total damage it sustained as a result of covered losses under the policy of insurance now exceeds $3,586,699.74. Despite having a valid, well documented, and sound legal claim for damages that are well in excess of $3,500,000.00, Frontline Insurance has in most regards ignored their insured, sought to waste the time and resources of the insured with countless inspections, and has yet sadly failed to address the claim in a timely manner. Despite repeated requests for an additional payment, no funds have been remitted to Swan Lake since April 25, 2023.
Swan Lake recently attended mediation in good faith and to negotiate a resolution. However, the mediation resulted in an impasse. Frontline’s continuing breach of their policy of insurance can no longer be tolerated. Swan Lake has a statutory duty to its members and takes that responsibility seriously. It is Swan Lake’s expectation that Frontline will do the same and recognize that a payment is due immediately. Frontline should also be forced to comply with the numerous statutory obligations required of it and should end its deliberate efforts to delay the timely handling of the claim filed by its insured.
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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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