Civil Remedy Notice of Insurer Violations
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Filing Number:     802728
Filing Accepted:  1/21/2025
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Complainant
Last/Business Name *  
LAMOUNTAIN   First Name   RAYMOND
Street Address * 845 JUNIPER CIR.
City, State Zip * ROCKLEDGE, FL 32955
Email Address * VIDONI@VIDONILAW.COM
Complainant Type: * Insured
Insured
Last/Business Name*   LAMOUNTAIN   First Name   RAYMOND
Policy # * P001941619 Claim #* 245-879
Attorney
Attorney is Applicable
Last Name* VIDONI First Name * NICHOLAS Initial A
Street Address* 959 N. COCOA BLVD. #5
City, State Zip* COCOA , FL 32922
Email Address * VIDONI@VIDONILAW.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   SECURITY FIRST INSURANCE COMPANY
NAIC Company Code 10117
 
Name of individual responsible for violation (if any):* DAVID SMITH
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
Other : Failure to Defend and Failure to Idemnify
* Statutory provision(s) which the insurer allegedly violated.
 
626.9541(1)(i)(3)(d) Denying claims without conducting reasonable investigations based upon available information.
* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

ADDITIONAL COVERAGES 1. Debris Removal. We will pay your reasonable expense for the removal of: a. Debris of covered property if a Peril Insured Against that applies to the damaged property causes the loss; or .... 2. Reasonable Emergency Measures. ... SECTION II – ADDITIONAL COVERAGES We cover the following in addition to the limits of liability: 1. Claim Expenses. We pay: a. Expenses we incur and costs taxed against an "insured" in any suit we defend; a. We will pay up to the greater of $3,000 or 1% of your Coverage A limit of liability for the reasonable costs incurred by you for necessary measures taken solely to protect covered property from further damage, when the damage or loss is caused by a Peril Insured Against. ... 13. “Fungi”, Mold, Wet or Dry Rot, Or Bacteria a. We will pay up to the amount stated in the Declarations for Limit of Liability for “Fungi” Coverage for: (1) The total of all loss payable under Section I – Property Coverages caused by or resulting directly or indirectly from “fungi”, mold, wet or dry rot, or bacteria; (2) The cost to remove “fungi”, mold, wet or dry rot, or bacteria from property covered under Section I – Property Coverages; (3) The cost to tear out and replace any part of the building or other covered property as needed to gain access to the “fungi”, mold, wet or dry rot, or bacteria; and (4) The cost of testing of air or property to confirm the absence, presence or level of “fungi”, mold, wet or dry rot, or bacteria whether performed prior to, during or after removal, repair, restoration or replacement. The cost of such testing will be provided only to the extent that there is a reason to believe that there is the presence of “fungi”, mold, wet or dry rot, or bacteria. ... COVERAGE A – DWELLING and COVERAGE B – OTHER STRUCTURES We insure against risk of direct loss to property described in Coverages A and B only if that loss is a physical loss to property. ... 3. Loss Settlement. Covered property losses are settled as follows: a. Property of the following types: (1) Personal property; (2) Awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings; and (3) Structures that are not buildings; at actual cash value at the time of loss but not more than the amount required to repair or replace. b. Buildings under Coverage A or B at replacement cost without deduction for depreciation, subject to the following: (1) If, at the time of loss, the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, after application of deductible and without deduction for depreciation, but not more than the least of the following amounts: (a) The limit of liability under this policy that applies to the building; (b) The replacement cost of that part of the building damaged for like construction and use on the same premises; or (c) The necessary amount actually spent to repair or replace the damaged building.
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Mr. Lamountain suffered a loss associated with his home. The loss involved water damage that necessitated the restoration of Mr. Lamountain’s kitchen and floors, among other things. Security First Insurance Co. determined that coverage existed for the loss. Mr. Lamountain hired Water & Mold Insurance Restoration, Inc. to address the damage. Security First Insurance Co. and Water & Mold Insurance Restoration, Inc. disputed the value of the claim and the work performed. This disagreement between the insurer and contractor as to the compensable value of the Mr. Lamountain’s loss resulted in Water & Mold Insurance Restoration, Inc. filing a lawsuit against Mr. Lamountain seeking their claimed value of the work. Security First Insurance Co. later determined that they had a duty to defend Mr. Lamountain, and had their appointed attorney represent him. For reasons unknown to Mr. Lamountain, Security First Insurance Co. later withdrew representation of Mr. Lamountain, forcing him to incur attorney’s fees and costs. Because the costs sought by Water & Mold Insurance Restoration, Inc. were covered by Mr. Lamountain’s policy - either in full or in part - Security First Insurance Co. had a duty to defend Mr. Lamountain and a duty to indemnify him for any amounts that exceed the insurance proceeds already provided. Security First Insurance Co. is in breach of its obligations under the policy because it withdrew its defense of Mr. Lamountain.
Comments
User Id Date Added Comment
dsmith@securityfirstflorida.com 03-06-2025 PROCESSING CENTER: P.O. BOX 730839 ORMOND BEACH, FL 32173-0839 By Regular Mail and e-mail: Vidoni@vidonilaw.com March 6, 2025 Mr. Nicholas A. Vidoni Vidoni Law PLLC 959 N Cocoa Blvd Ste 5 Cocoa, FL 32922-7565 Re: Carrier: Security First Insurance Company Claim No.: 245879 Insured: Raymond La Mountain Claimant: Water & Mold Insurance Restoration, Inc. Policy No.: P001941619 DFS No. 802728 Date of Loss: 2/26/2021 Dear Mr. Vidoni: This will respond to the Civil Remedy Notice filed by you on behalf of Raymond La Mountain relating to the Security First Insurance Company (“Security First”) Homeowner’s Policy (“Policy”) issued to Mr. La Mountain. Security First denies any allegations of bad faith in connection with this claim. In the Civil Remedy Notice, you assert that Security First violated section 626.954(1)(i)(3)(d) based upon its purported “Failure to Defend and Failure to Indemnify” Mr. La Mountain with respect to a lawsuit filed by Water & Mold Insurance Restoration, Inc. against Mr. La Mountain in the Circuit Court of Brevard County, Florida (“Lawsuit” or “Complaint”). In support of that contention, you cite various portions of the Policy contained in Section I–Property Coverages that relates to property damage to Mr. La Mountain’s property. Whether a duty to defend exists depends on the policy language. See e.g., Allstate Ins. Co. v. RJT Enters., Inc., 692 So. 2d 142, 144 (Fla. 1997) ( “[I]f there is no contractual duty to defend in the parties’ contract then there is no duty to defend.”). You have not identified any provision under Section I—Property Coverages that set forth a duty to defend, nor does one exist. Security First has no duty to defend you under the provisions cited. Section II-Liability coverage does contain a defense obligation. However, the claims made in the Lawsuit do not trigger a duty to defend under Florida law. The Policy contains the following under SECTION II - LIABILITY COVERAGES: COVERAGE E – Personal Liability If a claim is made or a suit is brought against an “insured” for damages because of “bodily injury” or “property damage” caused by an “occurrence” to which this coverage applies, we will: 1. Pay up to our limit of liability for the damages for which the “insured” is legally liable. . . 2. Provide a defense at our expense by counsel of our choice, even if the suit is groundless, false or fraudulent. . . . Policy at page 14 of 21. Your Policy also contains the following definitions: 1. "Bodily injury" means bodily harm, sickness or disease, including required care, loss of services and death that results. * * * 5. "Occurrence" means an accident, including continuous or repeated exposure to substantially the same general harmful conditions, which results, during the policy period, in: a. “Bodily injury”; or b. “Property damage.” 6. “Property damage” means physical injury to, destruction of, or loss of use of tangible property. Policy at pages 1-2 of 21. The Policy also contains the following exclusions: SECTION II – EXCLUSIONS Coverage E – Personal Liability and Coverage F – Medical Payments to Others do not apply to “bodily injury" or "property damage”: Under SECTION II – EXCLUSIONS 1. Coverage E – Personal Liability and Coverage F – Medical Payments to Others, items a., c., g., k., and l.. are deleted and replaced by the following: a. Which is expected or intended by one or more “insureds”; Policy at pages 14 of 21 and 11 of 16. In the Complaint, Plaintiff seeks damages arising from emergency water mitigation and mold remediation services conducted on Mr. La Mountain’s property by Plaintiff. Plaintiff seeks to recover $132,246.50 for the services performed. Plaintiff has alleged claims for breach of contract; construction lien foreclosure; quantum meruit and unjust enrichment, all seeking to recover for the services allegedly provided. Thus, Plaintiff is not seeking damage for an occurrence that resulted in “bodily injury” or “property damage” as those terms are defined. Rather, Plaintiff is seeking to recover economic losses for services rendered. As a result, there is no coverage under the Policy. See e.g., Old Republic Ins. Co. v. West Flagler Associates, Ltd., 419 So. 2d 1174, 1177-78 (Fla. 3d DCA 1982) (holding that alleged diminution in bettors’ winnings was not “property damage” and thus not covered under the policy). Further, to the extent your conduct was intentional, coverage would be excluded. As a result, Security First has no obligation to defend Mr. La Mountain against the claims made in the Lawsuit. When there is no duty to defend, there is no duty to indemnify under Florida law. Fun Spree Vacations, Inc. v. Orion Ins. Co., 659 So. 2d 419, 422 (Fla. 3d DCA 1995). Mr. La Mountain will have to have you or other counsel defend him in this matter or defend himself. As outlined in previous correspondence, Security First has thoroughly investigated this matter and determined there is no duty to defend or indemnify Mr. La Mountain in the Lawsuit. To the extent you have something further you wish Security First to consider, please provide it to Security First. As noted, Security First denies any and all allegations of bad faith. At all times, Security First has acted in good faith and in compliance with all applicable Florida laws in the handling of this matter. Please contact me if you have any questions. Sincerely, David L. Smith Litigation Specialist Security First Insurance Company Florida License No. A2467149 Ofc: 386-247-0737 dsmith@securityfirstflorida.com
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