Civil Remedy Notice of Insurer Violations
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Filing Number:     800152
Filing Accepted:  1/9/2025
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Complainant
Last/Business Name *  
ROSSI   First Name   E. JEFFREY AND CAROL
Street Address * 47 SEAWATCH DRIVE
City, State Zip * BOCA GRANDE, FL 33921
Email Address * JEFF@EJROSSI.COM
Complainant Type: * Insured
Insured
Last/Business Name*   ROSSI   First Name   E. JEFFREY AND CAROL
Policy # * HCPC-HW2-455529-8 Claim #* 927516
Attorney
Attorney is Applicable
Last Name* STOCKHAM First Name * DONNA Initial
Street Address* 109 S. EDISON AVENUE
City, State Zip* TAMPA , FLORIDA 33606
Email Address * DSTOCKHAM@STOCKHAMLAWGROUP.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   HOMEOWNERS CHOICE PROPERTY & CASUALTY INSURANCE COMPANY, INC.
NAIC Company Code 12944
 
Name of individual responsible for violation (if any):* PAUL FENN, SHEILA DOWNING, BASIL RILEY, SHELIA WYATT
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
Unsatisfactory Settlement Offer
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.
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)(3)(a) Failing to adopt and implement standards for the proper investigation of claims.
* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

J. 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 earliest of the following: 1. 20 days after we receive your proof of loss and reach written agreement with you; 2. 60 days after we receive your proof of loss and: a. There is an entry of a final judgment; or b. There is a filing of an appraisal award or a mediation settlement with us; or 3. If payment is not denied, within 90 days after we receive notice of an initial, reopened or supplemental claim. However, this provision (J.3.) does not apply if factors beyond our control reasonably prevent such payment. A. Coverage A – Dwelling. 1. We cover: a. The dwelling on the "residence premises" shown in the Declarations, including structures attached to the dwelling; and b. 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". C. Replacement Cost Loss Settlement Condition The following loss settlement condition applies to all property described in A. above: 1. We will pay no more than the least of the following amounts: a. Replacement cost at the time of loss without deduction for depreciation; b. The full cost of repair at the time of loss; c. The limit of liability that applies to Coverage C, if applicable; d. Any applicable special limits of liability stated in this policy; or e. For loss to any item described in A.2.a. – f. above, the limit of liability that applies to the item. 2. We will settle the loss as noted in Paragraph C.1. above whether or not actual repair or replacement is complete. All other provisions of this policy apply.
 
* 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. Homeowners Choice Property & Casualty Insurance Company (“Homeowners Choice”) has breached the public’s trust by its adjustment of E. Jeffrey Rossi and Carol A. Rossi’s (“Insureds”) claim of loss. Homeowners Choice’s mailing address is 3802 Coconut Palm Drive, Tampa, FL 33619. Homeowners Choice has failed to create and implement adequate guidelines for the proper investigation and evaluation of claims, claims handling, and for training and supervision of employees resulting in statutory violations as set forth above. Homeowners Choice has failed and/or refused to thoroughly, accurately, and completely investigate and evaluate the Insureds’ insurance claim for damages. Homeowners Choice has failed to promptly settle the Insureds’ insurance claim when the obligation to settle the insurance claim had become reasonably clear. To date, notwithstanding the Insureds’ pleas otherwise, Homeowners Choice has continued to refuse to acknowledge its obligation to conduct a proper investigation, and to tender the full amount of insurance monies due and owing to the Insureds under the policy. The Insureds’ property in Boca Grande, FL was badly damaged by the winds of Hurricane Ian on September 28, 2022. The Insureds’ ground floor/garage level also sustained some minor flood damage. However, the water line was just 5 ½ inches on the ground floor and has nothing to do with the damage above that mark, nor interior damage on the floors above the garage. The Insureds are not claiming anything for damage caused by any flooding. The roof was damaged, and a “hurricane proof” sliding glass door on the second floor was smashed by flying debris. The wind was so severe that wood siding was blown off on three (3) sides of the house. These parts of the walls, as well as garage doors and garage sides were completely blown off and never found. Railings, step treads, and decks were also blown away or severely damaged by wind at the front and back of the house. Interior damage occurred from water blown in through the roof and/or top portion of the house. Paul Fenn, and Independent Adjuster sent by Homeowners Choice, inspected the damage on November 4, 2022, and saw all of the above-described damage but for the upper deck. Mr. Fenn commented that the entire house would need to be repainted when the repairs were complete. Unfortunately, the Insureds have met with resistance by Homeowners Choice from the outset. Homeowners Choice has questioned several of the invoices submitted by the Insureds, including an invoice from Bowen Construction for deck repair. The Insureds had no problems with their deck prior to Hurricane Ian. However, a vendor retained by the Insureds, Absolute Window & Door, found the deck to be so badly damaged by Ian that it would not step onto the deck to replace a sliding glass door until the deck was fortified from the wind damage. The deck repair should be paid; it was damaged by the storm, and it was necessary to repair it so that the sliding glass door could be repaired to prevent further damage. Homeowners Choice has also made an issue of an invoice from Bowen Construction that inadvertently indicates that there is damage is to a “boathouse.” However, this is a typo on the invoice, as the Insureds do not have a boathouse. Homeowners Choice inspected the property and should be aware of this. Homeowners Choice has also consistently refused to pay any of the $15,540.00 incurred by the Insureds to pay Next Level Millwork to replace the garage doors, metal guides, walls, and garage door openers, falsely alleging that all of that damage was caused by flooding. However, the pooled water never exceeded 5 1/2”. The garage doors sit approximately 12 ½ inches off the floor. 5 ½ inches of pooled water obviously did not ruin the doors, walls, metal garage door guides or openers on the ceiling of the garage. On November 1, 2023, Sheila Downing, a Catastrophe Supervisor for Homeowners Choice, told the Insureds that all of the Bowen Construction invoices were being rejected, erroneously alleging that Bowen was a roofer, that a roofer is not entitled to overhead and profit, and that a roofer cannot subcontract out work. However, Bowen Construction is a licensed general contractor, specializing in residential and commercial construction and historic renovations in Boca Grande since 1982. Homeowners Choice reasonably demanded proof of payment for all repairs that have been completed, which the Insureds have provided. However, Homeowners Choice also demanded the Insureds produce a signed contract with Bowen Construction, despite being advised that no contract was entered into. Bowen completed the work indicated on its invoices and was promptly paid by the Insureds for that work, and proof of payment was submitted to Homeowners Choice. On December 4, 2023, Homeowners Choice acknowledged it had received the proof of payments, but then requested building permits, and again requested a signed contract with Bowen Construction, despite having been advised several times that a contract did not exist. The Insureds responded that they had been told that permits were not necessary when repairs were made to bring the property back to its original state. The Insureds have completed all covered storm repairs at a cost of $193,780.88. Most of the invoices submitted to Homeowners Choice do not include repairs to the ground floor area. However, some invoices from Rob Kohler Painting, Bowen Construction, and Wrightway EMS, do contain work related to flood damage, and we have subtracted the flood portion of those invoices as follows: Rob Kohler Painting $30,244.17 ($32,494.88 reduced by $2,250.71 for flood repairs) Mullet’s Aluminum $9,240.00 Absolute Window & Door $6,679.42 Bowen Construction $97,120.73 ($100,804.06 reduced by $3,683.33 for flood repairs) Next Level Millwork $15,450.00 Leon’s Multi Services $2,750.00 ($7,050.00 reduced to coverage limitations) Condo & Commercial Maint. $930.00 Babe’s Plumbing $140.00 Grande Aire A/C $220.00 Friends of Bats 1,488.00 Wrightway EMS $29,518.57 ($44,255.72 reduced by $14,737.15 for flood repairs) Total $193,780.88 The breakdown is as follows: Rob Kohler Painting Inv. Date Inv. No. Description of Work Amount Invoiced 04/04/23 Inv. 2656 Interior Priming of hurricane damaged drywall $614.39 (This is being reduced by 1/3 that relates to flood repairs) 07/11/23 Inv. 2740 Interior Finish Painting $6,144.49 (This is being reduced by 1/3 that relates to flood repairs) 01/10/24 Inv. 2892 Replaced exterior wood siding – primed $5,411.00 08/26/24 Inv. 3030 Exterior Finish Painting $20,325.00 $32,494.88 Less 1/3 Ground Floor Flood Related Repairs $2,250.71 Total $30,244.17 Mullet’s Aluminum 04/18/23 Inv. No. 43079 Roof Repairs/Remove resurface Deck $9,240.00 Absolute Window & Door 08/10/23 Inv. No. 320271 Broken Window in upstairs bedroom $3,279.42 02/18/23 Inv. No. 503921 Labor to replace broken window $3,400.00 Total $6,679.42 Bowen Construction 05/02/23 Inv. No. 9937 Repair interior drywall on 3 levels $11,061.05 (This is being reduced by 1/3 that relates to flood repairs) 10/26/23 Inv. No. 11138 Exterior wood siding replacement on all 4 sides $31,034.33 01/05/24 Inv. No. 11224 Front & back stairway and decking repairs (partial) $18,473.20 02/06/24 Inv. No. 11227 Back stairway & front hand rails repair (partial) $7,571.75 06/24/24 Inv. No. 11309 Front railing and back deck repairs (partial) $10,350.58 09/24/24 Inv. No. 11470 Soffit repairs and stabilize a/c stand $9,645.24 12/12/23 Inv. No. 11208 Second Floor porch $12,667.91 $100,804.06 Less 1/3 Ground Floor Flood Related Repairs $3,683.33 Total $97,120.73 Next Level Millwork 07/16/24 None Replace 2 garage doors & panels, & Paint $12,100.00 (Total bill of $12,000 paid in installments - $6,000.00 on 6/20/24, and balance of $6,100.00 on 8/4/24) 07/16/24 None Replace electric garage door units $3,350.00 Total $15,450.00 Leon’s Multi Services, LLC Inv. Date Inv. No. Description of Work Amount Invoiced 01/09/23 None Debris/tree removal; Removed/replaced damaged screens $2,750.00 ($7,050 reduced to policy limits and/or coverage limitations) Condo & Commercial Maintenance 10/31/22 006172 Mitigation - Secure house before and after Ian $930.00 Babes’ Plumbing 01/19/23 113980419 Leak check; Found staining was from roof $140.00 Grande Aire A/C 11/09/22 94713 Repair two A/C systems $220.00 Friends of Bats 06/29/23 None Remove bats that entered through roof/siding $1,488.00 Total for these Various Vendors $5,528.00 Wrightway Emergency Services – Client Email No. 6 Inv. Date Inv. No. Amount Invoiced 02/14/23 $21,332.23 08/01/23 $12,423.49 (Paid by Insurance) 01/19/24 $4,000.00 08/19/24 $6,500.00 $44,255.72 Less 1/3 for Ground Floor Flood Related Repairs $14,737.15 Total $29,518.57 The Insureds have submitted all of these invoices to Homeowners Choice multiple times, but we are providing them again herewith for Homeowners Choice’s convenience. Homeowners Choice has accepted coverage in part, but grossly underestimated the scope and amount of the loss, and in the more than two (2) years since the loss, has paid just $44,160.91 after application of the $16,102.00 deductible. Dwelling/EMS $42,746.88 Ordinance & Law $414.03 Tree Debris $1,000.00 Total $44,160.91 On November 13, 2023, the Insureds unbelievably received a letter from Homeowners Choice alleging that although the claim was reported on October 5, 2022, it had been trying unsuccessfully to schedule an initial inspection of the residence to assess the scope of the loss and to determine coverage. However, as mentioned above, Homeowners Choice had already inspected the property in November 2022. Nevertheless, the Insureds told Homeowners Choice they would make their property available for a reinspection if so requested. The parties arranged the reinspection, but Homeowners Choice’s adjuster failed to appear. The parties subsequently made new arrangements for a reinspection, but in the meantime, Homeowners Choice wrote to the Insureds alleging that they had not cooperated with facilitating the reinspection. A reinspection was finally done in 2023, but the results were not shared with the Insureds. The reinspection, though, made little sense, as the bulk of the repairs were already completed by the time the reinspection was requested and completed. The Insureds’ incurred RCV damages are as follows: Incurred Expenses $193,780.88 Less Deductible $16,102.00 Less Prior Payments $44,160.91 RCV Damages $133,517.97 The concept of insurance is that the insurer will investigate and grant 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 in that definition is the fact that payment must be made timely and promptly so that the Insureds may mitigate their damages and be put back into the position they were in prior to the loss as quickly as possible. Homeowners Choice has breached this duty. The Insureds were, and still are, forced to expend out of pocket monies to submit the insurance claim, e.g., retaining an attorney and other experts to force the Insurer to honor its obligations under the insurance policy and to pay all the insurance proceeds due and owing to them. Homeowners Choice has refused and/or failed to tender all the insurance proceeds due and owing to the Insureds. Homeowners Choice’s refusal and/or failure to settle the insurance claim when under all circumstances it could have and should have done so had it acted fairly and honestly towards the Insureds is wrongful conduct. Furthermore, the Insureds contend that Homeowners Choice’s adjusters and/or representatives financially benefit from such wrongful conduct. In Florida, the work of adjusting insurance claims engages the public trust. During the adjustment of the Insureds’ claim, Homeowners Choice breached this duty by failing to adhere to and comply with the above referenced obligations. To cure the defects outlined above, Homeowners Choice must promptly tender all insurance proceeds due and owing to the Insureds that would reasonably place the Insureds back into their pre-loss condition, including the tender of accrued interest due and owing to the Insureds. This notice is given in order to perfect the right to pursue the civil remedy authorized by Fla. Stat. §624.155.
Comments
User Id Date Added Comment
Legal@hcpci.com 03-07-2025 This is Homeowners Choice Property & Casualty Insurance Company’s (“HCPCI”) response to the Civil Remedy Notice of Insurer Violations (“CRN”) filed on behalf of E. Jeffrey and Carol Rossi (“Insured”). HCPCI reviewed this CRN and conducted a thorough review of the subject claim (“claim”) and confirmed it handled the claim properly. Regarding an aspect of the claim, HCPCI issued payments for it on the information available to HCPCI and the circumstances at the time of such payments. HCPCI handled the claim in accordance with the policy and all statutory and regulatory requirements. HCPCI denies each allegation of bad faith and improper conduct in the CRN. At all times, HCPCI acted in good faith, fairly and honestly toward the Insured and with due regard for the Insured’s interests. Otherwise, the CRN is deficient. Generally, pursuant to Florida Statutes, Section 624.155, CRNs must identify and set forth statutory provisions insurers allegedly violated in handling insureds’ insurance claims along with specific, relevant insurance contract language and facts and circumstances. The foregoing provides insurers with notice of alleged statutory violations AND the opportunity to cure such alleged violations. Instead of complying with Florida Statutes, Section 624.155, the Insured’s attorney in the CRN contained an inaccurate recitation of the facts, failed to reference specific, relevant insurance policy language; cited irrelevant statutes; and relied on inaccurate and conclusory statements. The Insured’s laundry list of inapplicable statutes is insufficient. Julien v. United Prop. & Cas. Ins. Co., 311 So. 3d 875 (Fla. 4th DCA 2021). Furthermore, the Insured’s attorney filed a lawsuit based on the claim shortly after the filing of this CRN. Regardless of the fact there were no violations in this case, any action by HCPCI to cure violations alleged in the CRN could have been used against HCPCI in the lawsuit. The foregoing shows abuse by the Insured and the Insured’s attorney of the CRN and legal processes. Also and generally, the CRN constitutes an abuse of the CRN process, contravenes the purpose of CRNs, which is to promote resolution of issues in insurance claims. The CRN must be rejected, and it cannot serve as the basis of any action against HCPCI. Upon request by the Florida Department of Financial Services, HCPCI will provide to the DFS detailed correspondence HCPCI provided regarding the claim.
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