Filing Number: 806277
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| Filing Accepted: 2/11/2025 |
| Last/Business Name
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MEHMOOD
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First Name |
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RASHID & GREGORY CAIAZZO |
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| Street Address
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249 8TH AVE N. |
| City, State Zip
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ST. PETERSBERG,
FL
33701
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| Email Address
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JIM@JENKINSLAWPL.COM |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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MEHMOOD |
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First Name |
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RASHID & GREGORY CAIAZZO |
| Policy # * |
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79-CH-P113-6 |
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Claim #* |
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59-75R9-12M |
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Attorney is Applicable
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| Last Name* |
JENKINS, III
First Name *
JAMES
Initial
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| Street Address* |
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275 96TH AVE N., SUITE 5 |
| City, State Zip* |
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ST. PETERSBERG
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FL
33702
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| Email Address * |
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JIM@JENKINSLAWPL.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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STATE FARM FLORIDA 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 10739 |
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| Name of individual responsible for violation (if any):*
COURTNEY LEWIS AS WELL ANY AND ALL OTHER ADJUSTERS AND/OR REPRESENTATIVES HIRED BY STATE FARM THAT WERE INVOLVED IN THE CLAIMS PROCESS
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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 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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Other
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Not adjusting claims and evaluating the loss properly, promptly, and fairly
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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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| 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)(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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Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
The general policy language believed to be relevant to the violations alleged includes, but is not limited to:1) those related to the dwelling damages; 2) those related to the loss of use and/or ALE damages; 3) those related to the insurer's duty to acknowledge the loss and/or claim; 4) those related to the insurer’s duty to adjust the loss and/or claim; and 5) those related to the insurer’s duty to act on and timely pay claims. More specifically as follows:
SECTION I – PROPERTY COVERAGES
1. Dwelling. We cover the dwelling and materials and supplies located on or adjacent to the residence premises for use in the construction, alteration, or repair of the dwelling or other structures on the residence premises.
2. Other Structures. We cover other structures on the residence premises, separated from the dwelling by clear space. Structures connected to the dwelling by only a fence, utility line, or similar connection are considered to be other structures.
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COVERAGE C – LOSS OF USE
The most we will pay for the sum of all losses combined under Additional Living Expense, Fair Rental Value, and Prohibited Use is the limit of liability shown in the Declarations for Coverage C – Loss of Use.
1. Additional Living Expense. When a loss caused by a peril described in SECTION I – LOSSES INSURED causes the residence premises to become uninhabitable, we will pay the reasonable and necessary increase in cost incurred by an insured to maintain their normal standard of living for up to 24 months. Our payment is limited to incurred costs for the shortest of:
a. the time required to repair or replace the premises;
b. the time required for your household to settle elsewhere; or
c. 24 months.
This period of time is not limited by the expiration of this policy.
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SECTION I – ADDITIONAL COVERAGES
The following Additional Coverages are subject to all the terms, provisions, exclusions, and conditions of this policy.
3. Trees, Shrubs, and Landscaping. We will pay for accidental direct physical loss to outdoor:
a. trees, shrubs, live or artificial plants, and lawns;
b. artificial grass; and
c. hardscape property used for aesthetic purposes not permanently affixed to realty;
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SECTION I – LOSS INSURED
COVERAGE A – DWELLING
We will pay for accidental direct physical loss to the property described in Coverage A, unless the loss is excluded or limited in SECTION I – LOSSES NOT INSURED or otherwise excluded or limited in this policy.
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SECTION I – LOSS ETTLEMENT
COVERAGE A – DWELLING
Only the Loss Settlement Provisions shown in the Declarations apply. We will settle covered property losses according to the following. However, the valuation of any covered property losses does not include, and we will not pay, any amount for diminution in value
COVERAGE A – DWELLING
1. A1 – Replacement Cost Loss Settlement – Similar Construction.
a. We will pay the cost to repair or replace with similar construction and for the same use on the premises shown in the Declarations, the damaged part of the property covered under SECTION I – PROPERTY COVERAGES, COVERAGE A – DWELLING, except for wood fences, subject to the following: (
1) we will pay only the actual cash value at the time of the loss prior to repair or replacement of the damaged part of the property, up to the applicable limit of liability shown in the Declarations, not to exceed the cost to repair or replace the damaged part of the property;
(2) in addition, we will pay any remaining covered additional amounts you actually and necessarily incur to perform such repair or replacement as work is performed and expenses are incurred and submitted, or an amount up to the applicable limit of liability shown in the Declarations, whichever is less. There will be no deduction for depreciation;
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SECTION I – CONDITION
8. 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.
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HO-2570 FUNGUS(INCLUDING MOLD) LIMITED COVERAGE ENDORSEMENT
SECTION I – ADDITIONAL COVERAGES
Remediation of Fungus
a. If fungus is the result of a covered cause of loss, we will pay for:
(1) any loss of use or delay in rebuilding, repairing or replacing covered property, including any associated cost or expense, due to interference at the residence premises or location of the rebuilding, repair, or replacement, by fungus;
(2) any remediation of fungus, including the cost or expense to:
(a) remove the fungus from covered property or to repair, restore, or replace that property; or
(b) tear out and replace any part of the building or other property as needed to gain access to the fungus;
(3) the cost of any testing or monitoring of air or property to confirm the type, absence, presence or level of fungus, whether performed prior to, during or after removal, repair, restoration or replacement of 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.
This claim arises from an insurance dispute as the result of a loss at Gregory Caiazzo and Rashid Mehmood’s property located at 249 8th Ave N. St Petersburg, FL 33701 (“Property”), as a result of a Hurricane Milton which occurred on or about October 9, 2024. Damage from Hurricane Milton is a covered peril pursuant to the subject insurance policy between Gregory Caiazzo and Rashid Mehmood (“Insureds”) and State Farm Florida Insurance Company (“State Farm”). Following State Farm’s investigation into the claimed damage at the Property, on November 12, 2024, State Farm partially accepted coverage and partially denied coverage of the claim. Specifically, State Farm only accepted coverage for the dwelling’s roof, fence, and pavers and issued payment totaling $4,471.75 after applying the policy’s deductible of $7,944 and recoverable depreciation of $5,736.06. State Farm improperly denied coverage to the interior master bedroom suite based upon an exclusion related to surface and subsurface water despite being provided with photographs and videos showing that the water entered the property from above, not below. As such, State Farm has violated 626.9541(1)(i)(3)(d).
On November 21, 2024, State Farm was provided with invoices, estimates and receipts relating to the claimed damages. These receipts, invoices, estimates included costs for repairs to pavers ($1,250.00); costs for a roof replacement ($13,970); mold remediation and demo of master suite ($6,847.31); fence repairs ($875.00 and $3,875.80); landscape repairs ($755.00); interior master suit repairs ($24,882.50); mold testing ($1,250.00 and $650.00); AC repairs ($2,100); loss of use/ALE expenses ($2,500.00); and additional receipts from Amazon.com for out of pocket expenses ($53.78, $250.38, and $197.80). Since being provided with these documents, State Farm has not taken any additional steps to evaluate the claim nor has State Farm issued any additional payments or provided any additional communication notifying the Insureds of additional information necessary for the processing of a claim in violation of 624.155(1)(b)(1), 626.9541(1)(i)(3)(c), and 626.9541(1)(i)(3)(g).
On November 26, 2024, State Farm was provided with an executed Sworn Proof of Loss totaling $74,515.97 after the application of the deductible. With the proof of loss, State Farm was again provided with invoices, estimates and receipts relating to the claimed damages. These receipts, invoices, estimates included cost to the interior master suit for repairs ($24,882.50); repairs to the master suit closet ($11,225.85); costs for a roof replacement ($13,970); fence repairs ($875.00 and $3,875.80); landscape repairs ($755.00); loss of use/ALE expenses ($2,500.00); mold remediation and demo of master suite ($6,847.31); AC repairs ($2,100); mold testing ($1,250.00 and $650.00); and receipts from Amazon.com for out of pocket expenses ($53.78, $250.38, and $197.80). Other than acknowledging receipt of the proof of loss, State Farm has not taken any additional steps to evaluate the claim nor has State Farm issued any additional payments or provided any additional communication notifying the Insureds of additional information needed to process the claim in violation of 624.155(1)(b)(1), 626.9541(1)(i)(3)(c), and 626.9541(1)(i)(3)(g).
On January 23, 2025, State Farm was provided with the Insureds’ professional engineer report that found that the damage to the master suite was a direct result of the hurricane. Specifically, the professional engineer found that wind damaged the structure's doors and compromised their seals which allowed water to enter and cause the claimed damages to the master bedroom suite. Furthermore, along with the report, State Farm was provided with correspondence again requesting State Farm to issue payment related to the above mentioned invoices, receipts, and estimates along with payment under Coverage C – Loss of Use. Despite being provided with this report and correspondence, State Farm has not taken any additional steps to evaluate the claim nor has State Farm issued any additional communication whatsoever in violation of 626.9541(1)(i)(3)(c) and 626.9541(1)(i)(3)(g). Moreover, it is clear that State Farm has failed adopt and implement standards for the proper investigation of claims in violation of 626.9541(1)(i)(3)(a). State Farm has also clearly violated 626.9541(1)(i)(3)(b), as it has misrepresented pertinent facts and insurance policy provisions in order to not settle this claim in good faith. Specifically, State Farm has attempted to misconstrue and misrepresent facts related to the cause of the damages to the master bedroom suite in order to avoid payment of a valid covered claim under the Policy.
As such, this notice is given in order to perfect the right to pursue the civil remedy authorized by section 624.155, Florida Statutes. It is clear that State Farm l has not acted honestly or fairly towards its Insureds. In Florida, the work of adjusting insurance claims engages the public trust. State Farm has breached this duty in the adjustment of the Insureds’ claim of loss. State Farm has failed and/or refused to thoroughly, accurately, and completely investigate, evaluate, and pay the Insureds’ insurance claim for damages. State Farm has failed to tender all monies due and owing to the Insureds for the damage caused to the Property. State Farm and its adjusters have also misrepresented the scope and cause of damages to the residence in order to ensure its valuation of the claim despite being presented with estimates, quotes, photographs, videos, and an engineering report that support the Insureds’ claim for damages.
As is the case here, it has become a general business practice of State Farm to not implement proper claims handling procedures, to hire consultants that routinely ignore or intentionally misidentify relevant evidence, and to not settle claims in good faith when under all circumstances it should have. State Farm regularly undervalues claims in order to avoid issuing payment on losses that it knows are covered under the policy. State Farm also routinely refuses to pay claims in full when it has the ability to do so and waits to see if its Insureds contest the coverage determination by filing a lawsuit, as was necessary here. As such, State Farm l has developed this deliberate strategy in order to deter its Insureds from challenging its coverage determinations, hinder their ability to seek payment for monies owed under the policy, and is deliberately taking advantage of the delays caused by the influx of cases within the court system.
As is the case here, the Insureds have provided State Farm with a multitude of documentation to support that their damages exceed the undisputed amount determined by State Farm and despite same, State Farm has failed to make any additional payment, failed to communicate with the Insureds/Insureds’ representatives, and has failed to make any type of satisfactory settlement offer. This causes unnecessarily delays in resolution of its claims and leaves claimants, like the Insureds, with no choice but to incur further time and expense just to be fully indemnified pursuant to the terms of their contract with the Insurer. State Farm has completely abdicated its duty to adjust and has put the onus on its Insureds to incur additional costs in order for the Insureds to be able to recover insurance benefits that State Farm knows are owed.
This is wrongful conduct and directly violates the purpose of insurance coverage. Additionally, there may be further wrongful conduct which has not been made known to the Insured at this moment. Certain conduct or actions may be discovered throughout discovery or cannot be verified without a review of the State Farm claim file and standards and procedures for the adjustment and investigation of claims.
Furthermore, on February 5, 2025, the Insureds’ attorney/representative reached out to State Farm to obtain a status of the claim and in that correspondence, State Farm was provided with receipts of the expenses and cost incurred in relation to repairs. Specifically, State Farm was provided with receipts from fence repairs ($875.00 and $3,875.80); receipts from landscape repairs ($1,055.00); receipts from drywall repairs to master bedroom ($800, $1,300, $2,228.16 and $3,560.00); and an additional Loss of Use/ALE expenses/receipts ($3,720, $528.84, $3,360). State Farm has not yet acknowledged this correspondence, responded, or provided any payments. However, the Insureds understand that it has only been 6 calendar days since this correspondence was issued.
To cure the defects outlined in this Civil Remedy Notice, State Farm must do the following:
1. Cease and desist all present and future bad faith actions with regard to the claim;
2. Immediately communicate with the Insureds attorney/representative and notify the Insureds’ attorney/representative of any additional information necessary for the processing of a claim, if any;
3. Release the recoverable depreciation amount of $5,736.06
4. Tender payment for the additional amounts of damages caused by the loss that are due and owing under the Policy including expenses identified above and all accrued interest due and owing under all applicable Florida Statutes.
While the Insureds are requesting that the above be done to “cure” this Civil Remedy Notice, the Insureds would be willing to consider, and may accept, any reasonable counteroffer. Therefore, if State Farm disagrees with the requests, the Insureds request that State Farm make a counteroffer before the end of the “cure period” and provide supporting documentation for any such offer so that they may understand any discrepancies that could exist.
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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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