Civil Remedy Notice of Insurer Violations
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Filing Number:     804997
Filing Accepted:  2/4/2025
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Complainant
Last/Business Name *  
HOWLEY   First Name   PETER
Street Address * 6738 BUENA VISTA DRIVE
City, State Zip * MARGATE, FL 33063
Email Address * WITHHELD
Complainant Type: * Insured
Insured
Last/Business Name*   HOWLEY   First Name   PETER
Policy # * 205827 Claim #* 943136
Attorney
Attorney is Applicable
Last Name* SHERMAN First Name * RYAN Initial H
Street Address* 18801 NE 21ST AVENUE
City, State Zip* MIAMI , FL 33179
Email Address * RYANSHERMANFL@GMAIL.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):* NATALIE BANNER
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
Claim Denial
Unsatisfactory Settlement Offer
* 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.
626.9541(1)(i)(2) A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy.
626.9541(1)(i)(3)(a) Failing to adopt and implement standards for the proper investigation of claims.
626.9541(1)(i)(3)(b) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
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.

SECTION I - PERIIS INSURED AGAINST 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. We do not insure, however for loss: 2. Caused by: e. Accidental discharge or overflow of water or steam; unless loss to property covered under Coverage A or B results from an accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance on the "residence premises." Loss to property covered under Coverage A or B that results from an accidental discharge or overflow of water or steam from within a plumbing, heating air conditioning or automatic fire protective sprinkler system or household appliance on the "residence premises" includes the cost to tear out and repair only that part of a building, or only that part of an other structure, on the 'residence premises," necessary to access and repair the system or appliance. The cost that we will pay for the tear out and repair of the part or portion of the building or other structure covered under Coverage A or B as specified above is limited to only that part or portion of the covered building or other structure which is necessary to provide access to the part or portion of the system or appliance that caused the covered loss, whether the system or appliance, or any part or portion of the system or appliance, is repairable or not. ln no event will we pay for the repair or the replacement of the system or appliance that caused the covered loss, whether the system or appliance, or any part or portion of the system or appliance, is repairable or not. ln no event will we pay for the repair or the replacement of the system or appliance that caused the covered loss. We do not cover loss: (1) To the system or appliance from which this water or steam escaped; (2) On the "residence premises" caused by accidental discharge or overflow which occurs off the "residence premises"; (3) Caused by constant or repeated seepage or leakage of water or steam or the presence or condensation of humidity, moisture or vapor over a period of weeks, months or years, unless such seepage or leakage of water or the presence or condensation of humidity, moisture or vapor and the resulting damage is unknown to all "insureds" and is hidden within the walls or ceilings or beneath the floors or above the ceilings of a structure; (4) To a plumbing system, whether above or below the ground, caused by: (a) Age, collapse, obsolescence, wear, tear; (b) Fading, oxidization, weathering; (c) Deterioration, decay, marring, delamination, crumbling settling, cracking; (d) Shifting bulging racking, sagging, bowing, bending, leaning (e) Shrinkage, expansion, contraction, bellying, corrosion; (f) The unavailability or discontinuation of a part or component of the system; or (g) Any other age or maintenance related issue; (5) To a plumbing system, whether above or below the ground, caused by the impairment state or condition of the system, which prohibits repair or replacement including access, necessary to connect the adjoining parts of appliances, pipes or system; or (6) Loss otherwise excluded or limited elsewhere in the policy. For purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump, irrigation system or related equipment or a roof drain, gutter down spout or similar fixtures or equipment. f. Any of the following: (1) Wear and tear marring, deterioration; (2) Inherent vice, latent defect or mechanical breakdown; (3) Smog, rust, decay or other corrosion; 3. Excluded under Section I - Exclusions. Under paragraphs 1. and 2, any ensuing loss to property described in Coverages A and B not excluded or otherwise precluded in this policy is covered. Under Section I - Perils lnsured Against, a plumbing system includes a septic system. SECTION I - EXCLUSIONS 1. We do not insure for loss to property described in Coverages A and B caused by any of the following. However any ensuing loss to property described in Coverages A and B not otherwise excluded or excepted in this policy is covered. c. Faulty, inadequate or defective: (4) Maintenance; of part or all of any property whether on or off the "residence premises."
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

On or about August 17, 2024, the Insured suffered a loss on account of a plumbing leak causing damage to Insured’s property (hereinafter “Plumbing Leak Claim”). The Insurer assigned claim number 943136 to the Plumbing Leak Claim. After conducting an investigation on the Plumbing Leak Claim, Insurer acknowledged coverage, and issued partial post-deductible payments totaling $1,611.11 to the insured under Coverage A. However, said partial payment was woefully inadequate, and does not come close to compensating Insured for her total post-deductible damages in the amount of $58,133.53. As such, Insurer has failed to fully indemnify the Insured for her Plumbing Leak Claim as it was contractually obligated to do pursuant to the subject Policy. Insurer violated numerous Florida Statutes in its handling of Insured’s Plumbing Leak Claim. Insurer did not attempt in good faith to settle claims when, under all circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her interests, specifically when it was apparent the Insured’s damages far exceeded that of the Insurer’s estimate, per the Insured’s estimate identifying the deficiency in both the scope and costs of repairs to return the property to its pre-loss condition. Insurer made a material misrepresentation, and misrepresented pertinent facts or insurance policy provisions relating to Coverages at issue, when it failed to acknowledge coverage for the under-scoped, underpriced, and simply overlooked repairs to various damages throughout the property, and did so for the purpose and with the intent of effecting settlement of such claims, loss or damage on less favorable terms than those provided in the policy. As evidenced by the aforementioned actions, Insurer clearly failed to adopt and implement standards for the proper investigation of claims, and effectively denied the remainder of Insured’s claim without conducting reasonable investigations based on available information. Insurer can cure this breach by paying insurance monies due and owed to the Insured that would reasonably place Insured back to her pre-loss condition, as well as compensating the Insured for all Additional Living Expenses, as well as any and all reasonable attorney’s fees and costs incurred by her to date in connection with this claim and stemming from the aforementioned violations by the Insurer. This notice is given in order to perfect the right to pursue the Civil Remedy Authorized by this section. NOTE: As any information contained herein becomes part of the public record, the Insureds have withheld her email address so as to not make same available for public review. Furthermore, as the Insured is represented by counsel, it would be improper for any representative of the Insurer to contact the Insured directly for any reason utilizing her email address and, as such, the information is neither material to the Insurer’s ability to correct the violations contained herein nor required by the Department of Financial Services. The Insurer should direct all follow up correspondences to the attorney listed above.
Comments
User Id Date Added Comment
Legal@hcpci.com 04-04-2025 This is Homeowners Choice Property & Casualty Insurance Company’s (“HCPCI”) response to the Civil Remedy Notice of Insurer Violations (“CRN”) filed by attorney Ryan Sherman on behalf of Peter Howley (“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 payment for it on the information available to HCPCI and the circumstances at the time of such payment. 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