Filing Number: 803422
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| Filing Accepted: 1/24/2025 |
| Last/Business Name
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| Street Address
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2718 BRUCE STREET |
| City, State Zip
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MATLACHA,
FL
33993
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| Email Address
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N/A |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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HUNT |
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First Name |
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JONATHAN |
| Policy # * |
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EDH4061410-05 |
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Claim #* |
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EDI949420 |
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Attorney is Applicable
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| Last Name* |
ELIMELECH
First Name *
REBECCA
Initial
R
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| Street Address* |
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1500 N.E. 162ND ST. |
| City, State Zip* |
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MIAMI
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FLORIDA
33162
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| Email Address * |
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RELIMELECH@ILGPA.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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EDISON 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 12482 |
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| Name of individual responsible for violation (if any):*
N/A
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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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| 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)(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)(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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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 I – PROPERTY COVERAGES
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.”
COVERAGE B – Other Structures
We cover other structures on the “residence premises” set apart from the dwelling by clear space. This includes structures connected to the dwelling by only a fence, utility line, or similar connection.
SECTION I – PERILS INSURED AGAINST
COVERAGE A – DWELLING and COVERAGE B – OTHER STRUCTURES
1. We insure for sudden and accidental direct loss to property described in Coverages A and B only if that loss is a physical loss to covered property.
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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.
Jonathan Hunt (hereinafter the “Insured”), paid for a policy of insurance with Edison Insurance Company (hereinafter, “Insurer”) bearing policy number EDH4061410-05 (the “Policy”). The Policy provides coverage for damage to the Insured’s property located at 2718 Bruce Street, Matlacha, FL 33993 (the “Property”), including the significant damage that occurred as a result of Hurricane Ian on or about September 28, 2022 (the “loss”). Specifically, the Insured’s Property sustained substantial damage to the tile roof, window, screens, and lanai. The gutters are missing, there are cracks in the stucco, and there are cracks in the ceilings. There is exterior damage, interior cracks and the garage screen is down.
The Insured promptly reported their claim to the Insurer. On October 29, 2022, the Insurer sent a letter to the Insured advising that the damages to the Property totaled $1,145.21 for Coverage A (Dwelling), $28.90 for Coverage C (Content), $138.47 for Coverage C (Food Loss). In this letter, the Insurer partially denied the claim based on their investigation. The Insurer denied coverage for damage to the laminated floors due to wind-driven rain, alleging there was no peril-created opening in the roof, exterior walls, windows, or doors that allowed water to enter the interior. Also, the Insurer denied coverage for the screen replacement, claiming that the policy does not provide coverage for screen material costs associated with removing or replacing screens. The Insured subsequently contacted the InsuranceBusters.net, who conducted a thorough inspection of the property and compiled an estimate of damages. InsuranceBusters.net, on behalf of the Insured, forwarded said estimate which fully detailed the Insured’s damages and total $340,043.54. On June 29, 2023, the Insurer sent a letter informing the Insured that they will issue checks in the amount of $22,029.63 for Coverage A - Dwelling, $183.99 for Coverage B - Appurtenant Structures, $883.81 for Coverage C- Personal Property, and $261.53 for Coverage C - Food Loss. However, the Insurer refuses to resolve the Insured’s claim and pay for all damages to the Property. On September 25, 2023, the Insurer sent a letter, reaffirming their prior coverage decision, alleging that their supplemental review of the claim showed age-related deficiencies that are excluded per the policy.
The Insurer’s conduct is in bad faith and violates Florida’s statutes concerning the adjustment of insurance claims. First, Florida Statute § 624.155(1)(B)(1) requires good faith in the settlement of claims. The Insurer is in violation of this Statute for failing to provide a reasonable repair estimate. What is more, the Insurer violated Florida Statute § 624.155(1)(b)(3) by failing to promptly settle the claim, when the obligation to settle the claim became reasonably clear. Again, the Insurer failed to make a good faith offer to settle this claim and failed to account for the full scope of the damages. They failed to respond to the estimate provided by InsuranceBusters.net, on the Insured’s behalf, in a timely manner. They are obligated to provide coverage for all damages to the Insured’s Property, and not attempt to resolve this claim with lowball offers.
Additionally, the Insurer’s conduct violates Florida Statute § 626.9541, which prohibits unfair settlement practices. More specifically, the Insurer has violated Florida Statute § 626.9541(1)(i)(3)(a) by failing to adopt and implement standards for the proper investigation of claims. Further, the Insurer has violated Florida Statute § 626.9541(1)(i)(3)(c) by failing to acknowledge and act promptly with the Insured and its counsel. On February 20, 2023, InsuranceBusters.net sent their contract to the Insurer, but the Insurer failed to acknowledge the correspondence. On February 23, 2023, InsuranceBusters.net emailed the Proof of Loss to the Insurer and, as a reminder, advised the Insurer of the 14-day timeline for reciprocating communications. Despite InsuranceBusters.net’s constant efforts to correspond, the Insurer failed to respond to InsuranceBusters.net and the Insured for more than four months. On March 1, 2023, March 21, 2023, and March 30, 2023, InsuranceBusters.net emailed the Insurer in an attempt to arrange a mutual inspection for the Insurer to engage in fair claims handling. However, the Insurer was still unresponsive. On July 10, 2023, the Insurer sent a letter to the Insured admitting that they delayed issuing payment. In this letter, the Insurer advised that they will issue four checks in the amount of $6.29, $752.57, $30.19 and $8.93 for the interest owed as the Insurer did not issue payment within the timeframe required pursuant to Florida Statutes. Moreover, as mentioned above, the Insurer failed to account for the full scope of the damages and has additionally failed to respond to the estimate provided by InsuranceBusters.net, on behalf of the Insured, in a timely manner, delaying the resolution of this claim. Had the Insurer done so, it would have immediately settled this claim on a fair and reasonable basis and provided full coverage to its Insured.
Therefore, to cure the defects outlined in this Civil Remedy Notice, the Insurer must: (1) create and implement adequate guidelines for the proper investigation and evaluation of claims and for the training and supervision of employees, which will avoid future statutory violations and avoid this from occurring in the future; (2) immediately tender all insurance proceeds due and owing its Insured under the Policy in the amount of $340,043.54 (less the deductible and any prior payments), plus all statutory interest; (3) act fairly and honestly towards its Insured and with due regard for his interests in attempting to settle their Insured’s claim; (4) hold the claim open in the event that its errors and delay does or may cause the Insured to suffer either further loss and/or damage; and, (5) stipulate to the Insured’s entitlement to attorney’s fees and court costs pursuant to Florida Statutes §§ 627.428 and 626.9373.
Acknowledgment
This notice is given in order to perfect the right to pursue the civil remedy authorized by Florida Statutes section 624.155, should Edison Insurance Company fail to cure the violations set forth in this Civil Remedy Notice within the given cure period.
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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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