Civil Remedy Notice of Insurer Violations
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Filing Number:     807627
Filing Accepted:  2/20/2025
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Complainant
Last/Business Name *  
MYRTLE TRACE CONDOMINIUM ASSOCIATION INC.   First Name  
Street Address * 302-304 PEMBROKE DRIVE
City, State Zip * VENICE, FL 34293
Email Address * BRIAN@HLLAWGROUP.COM
Complainant Type: * Insured
Insured
Last/Business Name*   MYRTLE TRACE CONDOMINIUM ASSOCIATION INC.   First Name  
Policy # * AMC – 38162-00 Claim #* 4199851
Attorney
Attorney is Applicable
Last Name* LEWIS First Name * BRIAN Initial
Street Address* 2601 EAST OAKLAND PARK BOULEVARD #503
City, State Zip* FORT LAUDERDALE , FL 33306
Email Address * BRIAN@HLLAWGROUP.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   AMERICAN COASTAL INSURANCE COMPANY
NAIC Company Code 12968
 
Name of individual responsible for violation (if any):* STEPHEN WHITTEN; HELEN SINGLETARY; ANASTASIA HOCH; SYLVIA SOLAR; LINNETTE FRANCOIS; ADAM MARKOWITZ; ZAMAL DWARKA; AND ANY AND ALL ADJUSTERS, SUPERVISORS, MANAGEMENT, AND ANY OTHER INDIVIDUALS ASSOCIATED WITH OR RETAINED BY AMERICAN COASTAL INSURANCE
Type of Insurance * Commercial Property & Casualty   
Reason for Notice *
Claim Delay
Unsatisfactory Settlement Offer
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.

MYRTLE TRACE CONDOMINIUM ASSOCIATION INC. (THE “COMPLAINANT”), UPON INFORMATION AND BELIEF, ASSERTS THAT THE FOLLOWING POLICY PROVISIONS ARE APPLICABLE: THE POLICY LANGUAGE RELEVANT TO THE VIOLATIONS ALLEGED INCLUDES, BUT IS NOT LIMITED TO: 1) THOSE RELATED TO THE CONDOMINIUM ASSOCIATION COVERAGE FORM, 2) THOSE RELATED TO “BUILDING” DAMAGES, 3) THOSE RELATED TO COVERED PROPERTY, 4) THOSE RELATED TO COVERED CAUSES OF LOSS, 5) THOSE RELATED TO THE INSURER'S DUTY TO ACKNOWLEDGE THE LOSS AND/OR CLAIM, 6) THOSE RELATED TO THE INSURER’S DUTY TO ADJUST THE LOSS AND/OR CLAIM, 7) THOSE RELATED TO THE INSURER’S DUTY TO ACT ON AND TIMELY PAY CLAIMS, 8) THOSE RELATED TO LOSS CONDITIONS. 9) THOSE RELATED SPECIFICALLY TO REPLACEMENT COST VALUE, 10) THOSE RELATED SPECIFICALLY TO THE HURRICANE DEDUCTIBLE ALSO, 1) PROEPRTY ENHANCEMENT ENDORESMENT, 2) BUILDING AND PERSONAL COVERAGE FORM, 3) CAUSE OF LOSS- SPECIAL FORM, 4) STANDARD PROPERTY POLICY - DECLARATION, 5) THE "DUTIES IN THE EVENT OF LOSS OR DAMAGE" PROVISIONS, 6) THE "LOSS SETTLEMENT" CLAUSE, 7) THE "LOSS PAYMENT" SECTION, AS WELL AS 8) ORDINANCE OR LAW COVERAGE – ENDORSEMENT 9) OTHER PORTIONS OF THE "CONDITIONS" PORTION OF THE POLICY GENERALLY, AND ANY OTHER CONTRACTUAL PROVISIONS THAT ARE OR APPEAR RELEVANT BASED ON A REASONABLE READING OF THE FOLLOWING EXPLANATION OF THE "FACTS AND CIRCUMSTANCES". AND FINALLY, 1) COVERAGE A LIMIT OF INSURANCE, 2) PROPERTY NOT COVERED SECTION OF THE POLICY, 3) ADDITIONAL COVERAGES 4) INCREASED COST OF CONSTRUCTION, 5) THE VALUATION SECTION OF THE POLICY. Complainant reserves its right to amend to include any and all additional Coverage provisions that may become applicable upon further investigation.
 
* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

The notice is given in order to perfect the right to pursue the civil remedy authorized by F.S §624.155. The immediate repair/replacement of an Insured’s damages after a covered loss serves an important public policy concern. Despite this, AMERICAN COASTAL INSURANCE COMPANY (hereinafter “Carrier”) has still refused and failed to fully pay MYRTLE TRACE CONDOMINIUM ASSOCIATION INC, (hereinafter the “Complainant”) reasonable and necessary insurance benefits for services necessary to be rendered to the buildings as a result of a loss caused by Hurricane Ian, on or about September 28, 2022. In Florida, the adjusting of insurance claims involves a special relationship of trust with the public. As such, insurance adjusters and insurance company claims representatives are imposed with a duty of good faith claims conduct, and must adhere to the Code of Ethics which can be found in the Florida Administrative Code in rule 69B-220.201, F.A.C. This duty of good faith transfers to claims for insurance benefits. Carrier has breached this duty by its adjustment of the Complainant’s claim for insurance benefits as a result of Hurricane Ian. If the insurance company fails to fulfill its obligations, such as Carrier has done with regard to this claim, the policyholder, not only suffers contractual damages but also extra-contractual damages. When an insurance company fails to pay fully and properly on claims it owes or engages in wrongful practices, contractual damages alone are inadequate. It is hardly a penalty to require an insurer to pay an insured what it owed all along. Accordingly, the Florida legislature addressed the need for a bad faith action against an insurer in §624.155, Fla. Stat., and the Complainant adopts and incorporates all provisions of that statute into this Civil Remedy Notice including all of the applicable provisions of §624.155. I. Carrier has violated the following statutory provisions, specifically, Fla. Stat. § 626.9541(1)(i)(3)(a); § 624.155(1)(b)(3); § 624.155(1)(b)(1) Complainant timely filed a claim for insurance benefits on November 18, 2022, as a result of property damage discovered to have been the result of Hurricane Ian, or on about September 28, 2022. Carrier has failed to create and implement adequate guidelines for proper investigation and evaluation of claims and for training and supervision of employees and adjusters resulting in statutory violations as set forth herein, such as to Fla Stat. § 626.9541(1)(i)(3)(a). Carrier has failed and/or refused to thoroughly, accurately, and completely investigate and evaluate the Complainant’s claim for insurance benefits, as is evidenced by the claim investigation. Carrier’s assigned Jonathan Humphries with Sedewick on November 30, 2022 to inspect the subject buildings with a building consultant present. It was acknowledged that a covered loss occurred at the Property. The Carrier valued the claim at $517,994.13 less recoverable depreciation and deductible, which lead to an Actual Cash Value of $48,396.80. No additional payment was send after the $100,000 advance was issued. The valuation was based on the following: Summary for Location 90 Line Item Total 4,918.36 Material Sales Tax 31.47 Subtotal 4,949.83 Overhead 358.24 Profit 358.24 Total Cleaning Tax 4.67 Replacement Cost Value $5,670.98 Less Deductible [Full Deductible = 12,439.10] (5,670.98) Net Claim $0.00 Summary for Location 89 Line Item Total 4,262.08 Material Sales Tax 30.93 Subtotal 4,293.01 Overhead 292.54 Profit 292.54 Total Cleaning Tax 4.67 Replacement Cost Value $4,882.76 Less Deductible [Full Deductible = 28,331.45] (4,882.76) Net Claim $0.00 Summary for Location 88 Line Item Total 9,155.25 Material Sales Tax 107.71 Subtotal 9,262.96 Overhead 789.53 Profit 789.53 Total Cleaning Tax 9.35 Replacement Cost Value $10,851.37 Less Deductible [Full Deductible = 25,595.07] (10,851.37) Net Claim $0.00 Summary for Location 87 Line Item Total 7,466.72 Material Sales Tax 6.10 Subtotal 7,472.82 Overhead 610.52 Profit 610.52 Total Cleaning Tax 4.67 Replacement Cost Value $8,698.53 Less Deductible [Full Deductible = 25,637.37] (8,698.53) Net Claim $0.00 Summary for Location 86 Line Item Total 4,323.86 Material Sales Tax 3.39 Subtotal 4,327.25 Overhead 295.96 Profit 295.96 Total Cleaning Tax 4.67 Replacement Cost Value $4,923.84 Less Deductible [Full Deductible = 27,922.55] (4,923.84) Net Claim $0.00 Summary for Location 85 Line Item Total 11,093.72 Material Sales Tax 12.71 Subtotal 11,106.43 Overhead 973.88 Profit 973.88 Total Cleaning Tax 4.67 Replacement Cost Value $13,058.86 Less Deductible [Full Deductible = 25,637.37] (13,058.86) Net Claim $0.00 Summary for Location 84 Line Item Total 4,323.86 Material Sales Tax 3.39 Subtotal 4,327.25 Overhead 295.96 Profit 295.96 Total Cleaning Tax 4.67 Replacement Cost Value $4,923.84 Less Deductible [Full Deductible = 28,331.45] (4,923.84) Net Claim $0.00 Summary for Location 83 Line Item Total 6,462.86 Material Sales Tax 7.28 Subtotal 6,470.14 Overhead 510.25 Profit 510.25 Total Cleaning Tax 4.67 Replacement Cost Value $7,495.31 Less Deductible [Full Deductible = 27,922.55] (7,495.31) Net Claim $0.00 Summary for Location 82 Line Item Total 4,509.86 Material Sales Tax 3.73 Subtotal 4,513.59 Overhead 314.59 Profit 314.59 Total Cleaning Tax 4.67 Replacement Cost Value $5,147.44 Less Deductible [Full Deductible = 27,321.60] (5,147.44) Net Claim $0.00 Summary for Location 81 Line Item Total 5,341.71 Material Sales Tax 4.07 Subtotal 5,345.78 Overhead 397.81 Profit 397.81 Total Cleaning Tax 4.67 Replacement Cost Value $6,146.07 Less Deductible [Full Deductible = 27,922.55] (6,146.07) Net Claim $0.00 Summary for Location 80 Line Item Total 5,194.89 Material Sales Tax 6.32 Subtotal 5,201.21 Overhead 383.35 Profit 383.35 Total Cleaning Tax 4.67 Replacement Cost Value $5,972.58 Less Deductible [Full Deductible = 28,331.45] (5,972.58) Net Claim $0.00 Summary for Location 79 Line Item Total 5,040.85 Material Sales Tax 10.11 Subtotal 5,050.96 Overhead 368.32 Profit 368.32 Total Cleaning Tax 4.67 Replacement Cost Value $5,792.27 Less Deductible [Full Deductible = 28,331.45] (5,792.27) Net Claim $0.00 Summary for Location 78 Line Item Total 6,579.25 Material Sales Tax 49.41 Subtotal 6,628.66 Overhead 526.12 Profit 526.12 Total Cleaning Tax 4.67 Replacement Cost Value $7,685.57 Less Deductible [Full Deductible = 27,922.55] (7,685.57) Net Claim $0.00 Summary for Location 77 Line Item Total 6,539.25 Material Sales Tax 12.80 Subtotal 6,552.05 Overhead 518.44 Profit 518.44 Total Cleaning Tax 4.67 Replacement Cost Value $7,593.60 Less Deductible [Full Deductible = 27,325.25] (7,593.60) Net Claim $0.00 Summary for Location 76 Line Item Total 5,532.86 Material Sales Tax 5.59 Subtotal 5,538.45 Overhead 417.08 Profit 417.08 Total Cleaning Tax 4.67 Replacement Cost Value $6,377.28 Less Deductible [Full Deductible = 27,922.55] (6,377.28) Net Claim $0.00 Summary for Location 75 Line Item Total 4,881.86 Material Sales Tax 4.40 Subtotal 4,886.26 Overhead 351.86 Profit 351.86 Total Cleaning Tax 4.67 Replacement Cost Value $5,594.65 Less Deductible [Full Deductible = 27,321.60] (5,594.65) Net Claim $0.00 Summary for Location 74 Line Item Total 3,951.86 Material Sales Tax 2.71 Subtotal 3,954.57 Overhead 258.69 Profit 258.69 Total Cleaning Tax 4.67 Replacement Cost Value $4,476.62 Less Deductible [Full Deductible = 27,298.90] (4,476.62) Net Claim $0.00 Summary for Location 73 Line Item Total 3,858.86 Material Sales Tax 2.54 Subtotal 3,861.40 Overhead 249.37 Profit 249.37 Total Cleaning Tax 4.67 Replacement Cost Value $4,364.81 Less Deductible [Full Deductible = 24,189.30] (4,364.81) Net Claim $0.00 Summary for Location 72 Line Item Total 3,493.73 Material Sales Tax 0.59 Subtotal 3,494.32 Overhead 212.66 Profit 212.66 Total Cleaning Tax 4.67 Replacement Cost Value $3,924.31 Less Deductible [Full Deductible = 25,760.15] (3,924.31) Net Claim $0.00 Summary for Location 71 Line Item Total 4,788.86 Material Sales Tax 4.24 Subtotal 4,793.10 Overhead 342.54 Profit 342.54 Total Cleaning Tax 4.67 Replacement Cost Value $5,482.85 Less Deductible [Full Deductible = 26,559.75] (5,482.85) Net Claim $0.00 Summary for Location 70 Line Item Total 4,788.86 Material Sales Tax 4.24 Subtotal 4,793.10 Overhead 342.54 Profit 342.54 Total Cleaning Tax 4.67 Replacement Cost Value $5,482.85 Less Deductible [Full Deductible = 25,453.60] (5,482.85) Net Claim $0.00 Summary for Location 69 Line Item Total 5,575.83 Material Sales Tax 6.03 Subtotal 5,581.86 Overhead 421.41 Profit 421.41 Total Cleaning Tax 4.67 Replacement Cost Value $6,429.35 Less Deductible [Full Deductible = 25,453.60] (6,429.35) Net Claim $0.00 Summary for Location 68 Line Item Total 8,224.71 Material Sales Tax 9.32 Subtotal 8,234.03 Overhead 686.63 Profit 686.63 Total Cleaning Tax 4.67 Replacement Cost Value $9,611.96 Less Deductible [Full Deductible = 25,453.60] (9,611.96) Net Claim $0.00 Summary for Location 67 Line Item Total 6,834.86 Material Sales Tax 7.96 Subtotal 6,842.82 Overhead 547.52 Profit 547.52 Total Cleaning Tax 4.67 Replacement Cost Value $7,942.53 Less Deductible [Full Deductible = 28,331.45] (7,942.53) Net Claim $0.00 Summary for Location 66 Line Item Total 6,648.86 Material Sales Tax 7.62 Subtotal 6,656.48 Overhead 528.88 Profit 528.88 Total Cleaning Tax 4.67 Replacement Cost Value $7,718.91 Less Deductible [Full Deductible = 25,758.65] (7,718.91) Net Claim $0.00 Summary for Location 65 Line Item Total 5,997.86 Material Sales Tax 6.44 Subtotal 6,004.30 Overhead 463.66 Profit 463.66 Total Cleaning Tax 4.67 Replacement Cost Value $6,936.29 Less Deductible [Full Deductible = 25,758.65] (6,936.29) Net Claim $0.00 Summary for Location 64 Line Item Total 6,849.56 Material Sales Tax 25.15 Subtotal 6,874.71 Overhead 550.71 Profit 550.71 Total Cleaning Tax 4.67 Replacement Cost Value $7,980.80 Less Deductible [Full Deductible = 25,758.65] (7,980.80) Net Claim $0.00 Summary for Location 63 Line Item Total 5,160.86 Material Sales Tax 4.91 Subtotal 5,165.77 Overhead 379.81 Profit 379.81 Total Cleaning Tax 4.67 Replacement Cost Value $5,930.06 Less Deductible [Full Deductible = 25,760.15] (5,930.06) Net Claim $0.00 Summary for Location 62 Line Item Total 9,679.36 Material Sales Tax 117.82 Subtotal 9,797.18 Overhead 842.95 Profit 842.95 Total Cleaning Tax 4.67 Replacement Cost Value $11,487.75 Less Deductible [Full Deductible = 25,834.15] (11,487.75) Net Claim $0.00 Compass Building Services, LLC 183 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 183 Summary for Location 61 Line Item Total 10,482.95 Material Sales Tax 60.96 Subtotal 10,543.91 Overhead 917.63 Profit 917.63 Total Cleaning Tax 4.67 Replacement Cost Value $12,383.84 Less Deductible [Full Deductible = 24,189.30] (12,383.84) Net Claim $0.00 Compass Building Services, LLC 182 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 182 Summary for Location 60 Line Item Total 13,957.54 Material Sales Tax 31.15 Subtotal 13,988.69 Overhead 1,262.11 Profit 1,262.11 Total Cleaning Tax 4.67 Replacement Cost Value $16,517.58 Less Deductible [Full Deductible = 25,758.65] (16,517.58) Net Claim $0.00 Compass Building Services, LLC 181 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 181 Summary for Location 59 Line Item Total 4,881.86 Material Sales Tax 4.40 Subtotal 4,886.26 Overhead 351.86 Profit 351.86 Total Cleaning Tax 4.67 Replacement Cost Value $5,594.65 Less Deductible [Full Deductible = 25,834.15] (5,594.65) Net Claim $0.00 Compass Building Services, LLC 180 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 180 Summary for Location 58 Line Item Total 5,620.71 Material Sales Tax 4.57 Subtotal 5,625.28 Overhead 425.76 Profit 425.76 Total Cleaning Tax 4.67 Replacement Cost Value $6,481.47 Less Deductible [Full Deductible = 25,453.60] (6,481.47) Net Claim $0.00 Compass Building Services, LLC 179 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 179 Summary for Location 57 Line Item Total 4,066.16 Material Sales Tax 9.20 Subtotal 4,075.36 Overhead 270.77 Profit 270.77 Total Cleaning Tax 4.67 Replacement Cost Value $4,621.57 Less Deductible [Full Deductible = 25,760.15] (4,621.57) Net Claim $0.00 Compass Building Services, LLC 178 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 178 Summary for Location 56 Line Item Total 4,974.86 Material Sales Tax 4.57 Subtotal 4,979.43 Overhead 361.18 Profit 361.18 Total Cleaning Tax 4.67 Replacement Cost Value $5,706.46 Less Deductible [Full Deductible = 25,758.65] (5,706.46) Net Claim $0.00 Compass Building Services, LLC 177 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 177 Summary for Location 55 Line Item Total 8,544.30 Material Sales Tax 43.82 Subtotal 8,588.12 Overhead 722.04 Profit 722.04 Total Cleaning Tax 4.67 Replacement Cost Value $10,036.87 Less Deductible [Full Deductible = 26,073.60] (10,036.87) Net Claim $0.00 Compass Building Services, LLC 176 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 176 Summary for Location 54 Line Item Total 11,788.73 Material Sales Tax 60.66 Subtotal 11,849.39 Overhead 1,048.15 Profit 1,048.15 Total Cleaning Tax 4.67 Replacement Cost Value $13,950.36 Less Deductible [Full Deductible = 25,453.60] (13,950.36) Net Claim $0.00 Compass Building Services, LLC 175 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 175 Summary for Location 53 Line Item Total 2,928.86 Material Sales Tax 0.85 Subtotal 2,929.71 Overhead 156.21 Profit 156.21 Total Cleaning Tax 4.67 Replacement Cost Value $3,246.80 Less Deductible [Full Deductible = 25,758.65] (3,246.80) Net Claim $0.00 Compass Building Services, LLC 174 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 174 Summary for Location 52 Line Item Total 3,579.86 Material Sales Tax 2.03 Subtotal 3,581.89 Overhead 221.42 Profit 221.42 Total Cleaning Tax 4.67 Replacement Cost Value $4,029.40 Less Deductible [Full Deductible = 25,758.65] (4,029.40) Net Claim $0.00 Compass Building Services, LLC 173 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 173 Summary for Location 51 Line Item Total 4,137.86 Material Sales Tax 3.05 Subtotal 4,140.91 Overhead 277.33 Profit 277.33 Total Cleaning Tax 4.67 Replacement Cost Value $4,700.24 Less Deductible [Full Deductible = 25,453.60] (4,700.24) Net Claim $0.00 Compass Building Services, LLC 172 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 172 Summary for Location 50 Line Item Total 3,658.31 Material Sales Tax 0.85 Subtotal 3,659.16 Overhead 229.15 Profit 229.15 Total Cleaning Tax 4.67 Replacement Cost Value $4,122.13 Less Deductible [Full Deductible = 25,453.60] (4,122.13) Net Claim $0.00 Compass Building Services, LLC 171 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 171 Summary for Location 49 Line Item Total 6,205.91 Material Sales Tax 32.57 Subtotal 6,238.48 Overhead 487.09 Profit 487.09 Total Cleaning Tax 4.67 Replacement Cost Value $7,217.33 Less Deductible [Full Deductible = 25,758.65] (7,217.33) Net Claim $0.00 Compass Building Services, LLC 170 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 170 Summary for Location 48 Line Item Total 6,741.86 Material Sales Tax 7.79 Subtotal 6,749.65 Overhead 538.20 Profit 538.20 Total Cleaning Tax 4.67 Replacement Cost Value $7,830.72 Less Deductible [Full Deductible = 25,758.65] (7,830.72) Net Claim $0.00 Compass Building Services, LLC 169 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 169 Summary for Location 47 Line Item Total 4,044.86 Material Sales Tax 2.88 Subtotal 4,047.74 Overhead 268.01 Profit 268.01 Total Cleaning Tax 4.67 Replacement Cost Value $4,588.43 Less Deductible [Full Deductible = 25,453.60] (4,588.43) Net Claim $0.00 Compass Building Services, LLC 168 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 168 Summary for Location 46 Line Item Total 4,044.86 Material Sales Tax 2.88 Subtotal 4,047.74 Overhead 268.01 Profit 268.01 Total Cleaning Tax 4.67 Replacement Cost Value $4,588.43 Less Deductible [Full Deductible = 25,453.60] (4,588.43) Net Claim $0.00 Compass Building Services, LLC 167 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 167 Summary for Location 45 Line Item Total 4,717.91 Material Sales Tax 29.86 Subtotal 4,747.77 Overhead 338.02 Profit 338.02 Total Cleaning Tax 4.67 Replacement Cost Value $5,428.48 Less Deductible [Full Deductible = 26,559.75] (5,428.48) Net Claim $0.00 Compass Building Services, LLC 166 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 166 Summary for Location 44 Line Item Total 3,393.86 Material Sales Tax 1.69 Subtotal 3,395.55 Overhead 202.79 Profit 202.79 Total Cleaning Tax 4.67 Replacement Cost Value $3,805.80 Less Deductible [Full Deductible = 26,559.75] (3,805.80) Net Claim $0.00 Compass Building Services, LLC 165 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 165 Summary for Location 43 Line Item Total 5,395.22 Material Sales Tax 8.58 Subtotal 5,403.80 Overhead 403.62 Profit 403.62 Total Cleaning Tax 4.67 Replacement Cost Value $6,215.71 Less Deductible [Full Deductible = 26,559.75] (6,215.71) Net Claim $0.00 Compass Building Services, LLC 164 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 164 Summary for Location 42 Line Item Total 3,393.86 Material Sales Tax 1.69 Subtotal 3,395.55 Overhead 202.79 Profit 202.79 Total Cleaning Tax 4.67 Replacement Cost Value $3,805.80 Less Deductible [Full Deductible = 25,453.60] (3,805.80) Net Claim $0.00 Compass Building Services, LLC 163 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 163 Summary for Location 41 Line Item Total 8,328.56 Material Sales Tax 8.36 Subtotal 8,336.92 Overhead 696.92 Profit 696.92 Total Cleaning Tax 4.67 Replacement Cost Value $9,735.43 Less Deductible [Full Deductible = 25,453.60] (9,735.43) Net Claim $0.00 Compass Building Services, LLC 162 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 162 Summary for Location 40 Line Item Total 5,625.86 Material Sales Tax 5.76 Subtotal 5,631.62 Overhead 426.40 Profit 426.40 Total Cleaning Tax 4.67 Replacement Cost Value $6,489.09 Less Deductible [Full Deductible = 25,520.45] (6,489.09) Net Claim $0.00 Compass Building Services, LLC 161 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 161 Summary for Location 39 Line Item Total 3,858.86 Material Sales Tax 2.54 Subtotal 3,861.40 Overhead 249.37 Profit 249.37 Total Cleaning Tax 4.67 Replacement Cost Value $4,364.81 Less Deductible [Full Deductible = 25,453.60] (4,364.81) Net Claim $0.00 Compass Building Services, LLC 160 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 160 Summary for Location 38 Line Item Total 3,858.86 Material Sales Tax 2.54 Subtotal 3,861.40 Overhead 249.37 Profit 249.37 Total Cleaning Tax 4.67 Replacement Cost Value $4,364.81 Less Deductible [Full Deductible = 25,758.65] (4,364.81) Net Claim $0.00 Compass Building Services, LLC 159 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 159 Summary for Location 37 Line Item Total 6,648.86 Material Sales Tax 7.62 Subtotal 6,656.48 Overhead 528.88 Profit 528.88 Total Cleaning Tax 4.67 Replacement Cost Value $7,718.91 Less Deductible [Full Deductible = 25,453.60] (7,718.91) Net Claim $0.00 Compass Building Services, LLC 158 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 158 Summary for Location 36 Line Item Total 4,682.86 Material Sales Tax 61.26 Subtotal 4,744.12 Overhead 337.65 Profit 337.65 Total Cleaning Tax 4.67 Replacement Cost Value $5,424.09 Less Deductible [Full Deductible = 25,758.65] (5,424.09) Net Claim $0.00 Compass Building Services, LLC 157 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 157 Summary for Location 35 Line Item Total 7,247.87 Material Sales Tax 44.58 Subtotal 7,292.45 Overhead 592.48 Profit 592.48 Total Cleaning Tax 4.67 Replacement Cost Value $8,482.08 Less Deductible [Full Deductible = 25,758.65] (8,482.08) Net Claim $0.00 Compass Building Services, LLC 156 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 156 Summary for Location 34 Line Item Total 6,369.86 Material Sales Tax 7.11 Subtotal 6,376.97 Overhead 500.93 Profit 500.93 Total Cleaning Tax 4.67 Replacement Cost Value $7,383.50 Less Deductible [Full Deductible = 25,758.65] (7,383.50) Net Claim $0.00 Compass Building Services, LLC 155 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 155 Summary for Location 33 Line Item Total 6,648.86 Material Sales Tax 7.62 Subtotal 6,656.48 Overhead 528.88 Profit 528.88 Total Cleaning Tax 4.67 Replacement Cost Value $7,718.91 Less Deductible [Full Deductible = 25,453.60] (7,718.91) Net Claim $0.00 Compass Building Services, LLC 154 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 154 Summary for Location 32 Line Item Total 4,881.86 Material Sales Tax 4.40 Subtotal 4,886.26 Overhead 351.86 Profit 351.86 Total Cleaning Tax 4.67 Replacement Cost Value $5,594.65 Less Deductible [Full Deductible = 26,739.95] (5,594.65) Net Claim $0.00 Compass Building Services, LLC 153 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 153 Summary for Location 31 Line Item Total 5,221.07 Material Sales Tax 3.11 Subtotal 5,224.18 Overhead 385.66 Profit 385.66 Total Cleaning Tax 4.67 Replacement Cost Value $6,000.17 Less Deductible [Full Deductible = 28,331.45] (6,000.17) Net Claim $0.00 Compass Building Services, LLC 152 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 152 Summary for Location 30 Line Item Total 4,230.86 Material Sales Tax 3.22 Subtotal 4,234.08 Overhead 286.64 Profit 286.64 Total Cleaning Tax 4.67 Replacement Cost Value $4,812.03 Less Deductible [Full Deductible = 27,148.35] (4,812.03) Net Claim $0.00 Compass Building Services, LLC 151 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 151 Summary for Location 29 Line Item Total 15,948.54 Material Sales Tax 24.17 Subtotal 15,972.71 Overhead 1,460.51 Profit 1,460.51 Total Cleaning Tax 4.67 Replacement Cost Value $18,898.40 Less Deductible [Full Deductible = 26,073.60] (18,898.40) Net Claim $0.00 Compass Building Services, LLC 150 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 150 Summary for Location 28 Line Item Total 4,472.05 Material Sales Tax 6.05 Subtotal 4,478.10 Overhead 311.04 Profit 311.04 Total Cleaning Tax 4.67 Replacement Cost Value $5,104.85 Less Deductible [Full Deductible = 28,331.45] (5,104.85) Net Claim $0.00 Compass Building Services, LLC 149 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 149 Summary for Location 27 Line Item Total 4,932.56 Material Sales Tax 3.81 Subtotal 4,936.37 Overhead 356.87 Profit 356.87 Total Cleaning Tax 4.67 Replacement Cost Value $5,654.78 Less Deductible [Full Deductible = 28,331.45] (5,654.78) Net Claim $0.00 Compass Building Services, LLC 148 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 148 Summary for Location 26 Line Item Total 3,858.86 Material Sales Tax 2.54 Subtotal 3,861.40 Overhead 249.37 Profit 249.37 Total Cleaning Tax 4.67 Replacement Cost Value $4,364.81 Less Deductible [Full Deductible = 28,331.45] (4,364.81) Net Claim $0.00 Compass Building Services, LLC 147 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 147 Summary for Location 25 Line Item Total 4,932.56 Material Sales Tax 3.81 Subtotal 4,936.37 Overhead 356.87 Profit 356.87 Total Cleaning Tax 4.67 Replacement Cost Value $5,654.78 Less Deductible [Full Deductible = 28,331.45] (5,654.78) Net Claim $0.00 Compass Building Services, LLC 146 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 146 Summary for Location 24 Line Item Total 7,627.74 Material Sales Tax 27.11 Subtotal 7,654.85 Overhead 628.73 Profit 628.73 Total Cleaning Tax 4.67 Replacement Cost Value $8,916.98 Less Deductible [Full Deductible = 25,758.65] (8,916.98) Net Claim $0.00 Compass Building Services, LLC 145 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 145 Summary for Location 23 Line Item Total 4,881.86 Material Sales Tax 4.40 Subtotal 4,886.26 Overhead 351.86 Profit 351.86 Total Cleaning Tax 4.67 Replacement Cost Value $5,594.65 Less Deductible [Full Deductible = 25,760.15] (5,594.65) Net Claim $0.00 Compass Building Services, LLC 144 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 144 Summary for Location 22 Line Item Total 4,044.86 Material Sales Tax 2.88 Subtotal 4,047.74 Overhead 268.01 Profit 268.01 Total Cleaning Tax 4.67 Replacement Cost Value $4,588.43 Less Deductible [Full Deductible = 26,073.60] (4,588.43) Net Claim $0.00 Compass Building Services, LLC 143 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 143 Summary for Location 21 Line Item Total 3,114.86 Material Sales Tax 1.19 Subtotal 3,116.05 Overhead 174.84 Profit 174.84 Total Cleaning Tax 4.67 Replacement Cost Value $3,470.40 Less Deductible [Full Deductible = 25,453.60] (3,470.40) Net Claim $0.00 Compass Building Services, LLC 142 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 142 Summary for Location 20 Line Item Total 3,139.90 Material Sales Tax 1.78 Subtotal 3,141.68 Overhead 177.41 Profit 177.41 Total Cleaning Tax 4.67 Replacement Cost Value $3,501.17 Less Deductible [Full Deductible = 25,829.15] (3,501.17) Net Claim $0.00 Compass Building Services, LLC 141 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 141 Summary for Location 19 Line Item Total 11,769.76 Material Sales Tax 14.48 Subtotal 11,784.24 Overhead 1,041.67 Profit 1,041.67 Total Cleaning Tax 4.67 Replacement Cost Value $13,872.25 Less Deductible [Full Deductible = 24,028.42] (13,872.25) Net Claim $0.00 Compass Building Services, LLC 140 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 140 Summary for Location 18 Line Item Total 5,487.12 Material Sales Tax 16.12 Subtotal 5,503.24 Overhead 413.56 Profit 413.56 Total Cleaning Tax 4.67 Replacement Cost Value $6,335.03 Less Deductible [Full Deductible = 25,758.65] (6,335.03) Net Claim $0.00 Compass Building Services, LLC 139 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 139 Summary for Location 17 Line Item Total 5,904.86 Material Sales Tax 6.27 Subtotal 5,911.13 Overhead 454.35 Profit 454.35 Total Cleaning Tax 4.67 Replacement Cost Value $6,824.50 Less Deductible [Full Deductible = 25,760.15] (6,824.50) Net Claim $0.00 Compass Building Services, LLC 138 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 138 Summary for Location 16 Line Item Total 4,132.71 Material Sales Tax 1.86 Subtotal 4,134.57 Overhead 276.69 Profit 276.69 Total Cleaning Tax 4.67 Replacement Cost Value $4,692.62 Less Deductible [Full Deductible = 26,073.60] (4,692.62) Net Claim $0.00 Compass Building Services, LLC 137 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 137 Summary for Location 15 Line Item Total 5,346.86 Material Sales Tax 5.25 Subtotal 5,352.11 Overhead 398.45 Profit 398.45 Total Cleaning Tax 4.67 Replacement Cost Value $6,153.68 Less Deductible [Full Deductible = 25,484.90] (6,153.68) Net Claim $0.00 Compass Building Services, LLC 136 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 136 Summary for Location 14 Line Item Total 4,881.86 Material Sales Tax 4.40 Subtotal 4,886.26 Overhead 351.86 Profit 351.86 Total Cleaning Tax 4.67 Replacement Cost Value $5,594.65 Less Deductible [Full Deductible = 25,760.15] (5,594.65) Net Claim $0.00 Compass Building Services, LLC 135 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 135 Summary for Location 13 Line Item Total 5,088.42 Material Sales Tax 10.76 Subtotal 5,099.18 Overhead 373.16 Profit 373.16 Total Cleaning Tax 4.67 Replacement Cost Value $5,850.17 Less Deductible [Full Deductible = 25,453.60] (5,850.17) Net Claim $0.00 Compass Building Services, LLC 134 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 134 Summary for Location 12 Line Item Total 5,219.37 Material Sales Tax 4.57 Subtotal 5,223.94 Overhead 385.63 Profit 385.63 Total Cleaning Tax 4.67 Replacement Cost Value $5,999.87 Less Deductible [Full Deductible = 25,585.15] (5,999.87) Net Claim $0.00 Compass Building Services, LLC 133 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 133 Summary for Location 11 Line Item Total 6,757.46 Material Sales Tax 9.84 Subtotal 6,767.30 Overhead 539.96 Profit 539.96 Total Cleaning Tax 4.67 Replacement Cost Value $7,851.89 Less Deductible [Full Deductible = 25,453.60] (7,851.89) Net Claim $0.00 Compass Building Services, LLC 132 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 132 Summary for Location 10 Line Item Total 6,855.84 Material Sales Tax 11.49 Subtotal 6,867.33 Overhead 549.96 Profit 549.96 Total Cleaning Tax 4.67 Replacement Cost Value $7,971.92 Less Deductible [Full Deductible = 25,328.87] (7,971.92) Net Claim $0.00 Compass Building Services, LLC 131 Compass MYRTLE_TRACE_CONDO 4/10/2024 Page: 131 Summary for Location 9 Line Item Total 6,364.71 Material Sales Tax 5.93 Subtotal 6,370.64 Overhead 500.29 Profit 500.29 Total Cleaning Tax 4.67 Replacement Cost Value $7,375.89 Less Deductible [Full Deductible = 25,500.20] (7,375.89) Net Claim $0.00 Summary for Location 8 Line Item Total 4,044.86 Material Sales Tax 2.88 Subtotal 4,047.74 Overhead 268.01 Profit 268.01 Total Cleaning Tax 4.67 Replacement Cost Value $4,588.43 Less Deductible [Full Deductible = 25,500.20] (4,588.43) Net Claim $0.00 Summary for Location 7 Line Item Total 7,006.81 Material Sales Tax 19.55 Subtotal 7,026.36 Overhead 565.86 Profit 565.86 Total Cleaning Tax 4.67 Replacement Cost Value $8,162.75 Less Deductible [Full Deductible = 24,775.72] (8,162.75) Net Claim $0.00 Summary for Location 6 Line Item Total 16,979.90 Material Sales Tax 55.78 Subtotal 17,035.68 Overhead 1,566.79 Profit 1,566.79 Total Cleaning Tax 4.67 Replacement Cost Value $20,173.93 Less Deductible [Full Deductible = 24,028.47] (20,173.93) Net Claim $0.00 Summary for Location 5 - Code Upgrade Line Item Total 0.00 Replacement Cost Value $0.00 Net Claim $0.00 Location 5 - Code Upgrade Paid When Incurred Line Item Total 2,435.75 Material Sales Tax 11.37 Subtotal 2,447.12 Overhead 244.72 Profit 244.72 Replacement Cost Value $2,936.56 Total Paid When Incurred $2,936.56 Net Claim $0.00 Net Claim if Additional Amounts are Recovered $2,936.56 Summary for Location 5 Line Item Total 107,809.13 Material Sales Tax 1,408.80 Subtotal 109,217.93 Overhead 10,785.04 Profit 10,785.04 Total Cleaning Tax 23.36 Replacement Cost Value $130,811.37 Less Depreciation (30,555.35) Actual Cash Value $100,256.02 Less Deductible (25,453.60) Net Claim $74,802.42 Total Recoverable Depreciation 30,555.35 Net Claim if Depreciation is Recovered $105,357.77 Summary for Location 4 Line Item Total 7,350.89 Material Sales Tax 44.65 Subtotal 7,395.54 Overhead 602.79 Profit 602.79 Total Cleaning Tax 4.67 Replacement Cost Value $8,605.79 Less Deductible [Full Deductible = 25,453.60] (8,605.79) Net Claim $0.00 Summary for Location 3 Line Item Total 6,648.86 Material Sales Tax 7.62 Subtotal 6,656.48 Overhead 528.88 Profit 528.88 Total Cleaning Tax 4.67 Replacement Cost Value $7,718.91 Less Deductible [Full Deductible = 25,758.65] (7,718.91) Net Claim $0.00 Summary for Location 2 Line Item Total 4,841.70 Material Sales Tax 11.49 Subtotal 4,853.19 Overhead 348.54 Profit 348.54 Total Cleaning Tax 4.67 Replacement Cost Value $5,554.94 Less Deductible [Full Deductible = 25,520.45] (5,554.94) Net Claim $0.00 Summary for Location 1 Line Item Total 6,279.07 Material Sales Tax 36.25 Subtotal 6,315.32 Overhead 494.76 Profit 494.76 Total Cleaning Tax 4.67 Replacement Cost Value $7,309.51 Less Depreciation (465.55) Actual Cash Value $6,843.96 Less Deductible [Full Deductible = 25,758.65] (6,843.96) Net Claim $0.00 Total Depreciation 465.55 Less Residual Deductible [Full Residual Deductible = 18,914.69] (465.55) Total Recoverable Depreciation 0.00 Net Claim if Depreciation is Recovered $0.00 Complainant had to hire the services of Recovery Insurance Adjusters to assist the adjustment of the claim. Contrary of the Carrier’s position, Recovery Insurance Adjusters prepared an estimate for the roof replacements of the buildings, along with the necessary work associated with roof replacements. The total value of the estimate came to $16,753,564.70. Additionally, Complainant had performed temporary measures to protect the Property from further damages, which is consistent with the Policy. These documents were also submitted to the carrier. Complainant also retained Roof Leak Detection Company, Inc, a Forensic Licensed Engineering Firm, that specializes in Forensic Roof Evaluations, and is a HAAG Certified Roofing Inspector to assess the cause and extent of damage, as well as the appropriate repair methodology of the buildings. Part of their evaluation and report identified weather date from Weatherstrike from a Certified Meteorologist and Professional Engineer. The report indicated sustained wind speed of 64 mph a few miles from the Property, and wind gusts up to 82mph over a two-hour period. The evaluation also included walking the slopes of the roofing systems, identifying the type of roofing material, determining the age of the roofs, performing tile testing, and determining weather there are any failures to the roofing systems. The roofing tile was also identified to be an Entegra brand Skandia type concrete tile which no long has an active state of Florida notice of acceptance, and are no longer in production. The underlayment consisted of a 90lb membrane adhered to a mechanically attached 30lb base sheet on a plywood substrate. The age of the roofs were approximately 15 years old at the time of Hurricane Ian, which is well withing the normal life expectancy of concrete tile roofs. They observed fractured tiles, corner cracks, point load fracturing, de-bonded/ displaced hip and ridge cap tiles, temporary patched and active repairs. • 336-338 Pembroke Drive: 100 tests resulting in 5 failures. 5% failure rate • 305-307 Pembroke Ln. North: 100 tests resulting in 4 failures. 4% failure rate • 308-310 Pembroke Ln. North: 100tests resulting in 7 failures. 7% failure rate • 311-313 Pembroke Ln. North: 120 tests resulting in 8 failures. 6% failure rate Their opinion consisted of the following: It is our opinion that the use of dissimilar profile tiles would inhibit and prevent the uniform integrity of tile interlock, thus resulting in point loading. The use of geometrically dissimilar products to repair the discontinued roof tile will prohibit the structural interlock to the original tile and causing the tile to “kick” or rise. These dissimilar profiles will not allow for the seating, thus not allowing the tile to be installed flush to the surface. This condition could also result in the creating of “pressure points” along the under-lock of the adjacent tiles, increasing the susceptibility to “point loading” and potentially resulting in an increased probability of tile failure and breakage under wind load conditions. Broken field tiles exhibiting vertical fracturing along the points of fastening, point load fracturing, were identified during the evaluation It is our opinion that the extreme forces associated with Hurricane Ian exerted enough vertical uplift forces to fracture tiles at the point of fastening. Broken field tiles exhibiting right/left hand corner fractures were identified during the evaluation. This is a result of tile movement as a direct physical result of wind forces. It is our opinion that these damages have prohibited tile interlock and resulted in the loss of structural integrity of the tiles. In a December 2008 published article at the Fourth International Conference on Forensic Engineering, Greg McLellan P.E. had the following comments about tiles breaks: “Typically, wind damage to tile roofs includes the tile being lifted, broken and or scattered about the roof and surrounding area. Also tiles with cracks across their lower corners were observed in many cases. While cracks of this nature are often the result of restrained expansion/contraction stresses at a weak location in the tile, these tiles may also be the result of fluttering of mechanically attached tiles under wind pressure”. The roofing system was originally installed as a mechanically attached roofing system and a contractor would be altering the original installation. An adhered tile roofing system is dependent upon the underlayment for its ability to resist wind loads. The attachment of the underlayment cannot be verified without removal of the underlayment to ensure that the base sheet to which it is attached to, is properly nailed and meets building code requirements. C. ROOFING APPLICATION STANDARD (RAS) No. 118-20 INSTALLATION OF MECHANICALLY FASTENED ROOF TILE SYSTEMS GENERAL 1.01 A. Tiles shall not be installed over wet underlayment where moisture prohibits adhesion of mastic, mortar or adhesive. The inability to verify the presence of moisture in the concealed underlayment would further prohibit insert repairs with an adhesive. Despite the availability of similar or matched roof tiles, a roof repair cannot be performed in cases where there is significant underlayment damage, where back lap issues may be caused by the repair, all while considering applicable building codes. Here is an analysis of these factors: 1. Underlayment damage: The underlayment is a critical component of a roofing system, as it serves as a protective barrier against water infiltration and helps in the overall weatherproofing of a structure. If the underlayment is damaged or compromised as a result of the repair process, a simple repair may not be sufficient to restore the integrity of the roof. In such cases, a complete replacement of the underlayment is necessary. Furthermore, if the damage has spread to the surrounding areas, such as the roof deck or insulation, this may require more extensive repairs or even a full roof replacement. 2. Back lap issues: Back lapping occurs when the upper edge of a roofing material (e.g., shingles, tiles, or metal panels) is not correctly overlapped with the lower edge of the piece above it. This can lead to water infiltration, which can damage the underlying roofing components, such as the underlayment, roof deck, and insulation. If back lap issues are widespread, it becomes difficult to perform targeted repairs, as the entire roof installation may be compromised. In such cases, correcting the back lap issues may necessitate a complete reinstallation of the roofing material, which is more extensive than a simple repair. 3. Florida code compliance: Florida has strict building codes in place to ensure that structures can withstand the extreme weather conditions experienced in the region, such as hurricanes and heavy rainfall. These codes include requirements for roofing materials, underlayment, fasteners, and installation methods. Such one consideration would be the Florida Building Code Section 706.5. If a roof does not meet these code requirements, it may not provide the necessary protection against the elements, putting the structure at risk. Adherence to Florida Building Codes, as described herein, is likely a more costly and labor-intensive undertaking than a repair. 4. When removing the roofing system all flashing components must be removed and this will require paint and stucco repairs. Despite all this information being provided to the Carrier, the Carrier still refused to acknowledge their scope of damages was improper, and the repair methodology they based their coverage decision on is improper. The Complainant, through their representative, as provided all necessary documents, complied with all applicable post loss obligations, and is still met with an outright refusal to properly adjust the claim consistent with the evidence before them. Here it is evident that the Carrier has made every effort to save money by improperly acknowledging only minor repair was needed and discarded any notice of the true extend of what is needed to repair the Property to a pre-loss condition. Between Claimant’s reports, incurred invoices associated with some of the repairs, and the estimate prepared on the Claimant’s behalf, to place the buildings in a pre-loss condition, the Carrier has had more than ample evidence to show their adjustment of the claim was inaccurate. Carrier has continuously failed to acknowledge the appropriate remedy. It is clear that Carrier failed to implement standards for proper investigation of the Complainant’s insurance claim. As a practice, it is far more profitable for an insurance company to take in an insured’s premium and not pay, rather than to promptly and fully pay what is owed. This financial incentive conflicts with the extreme public trust placed in the insurance industry which is the reason that the State of Florida also implemented codes of ethics and good faith duties articulated in the Florida Administrative Code. Insurers and their representatives must follow these ethical duties. Frontline violated the following ethical requirements in its adjustment of the Complainant’s claim for insurance benefits: 4-220.201 Ethical Requirements. (4) Code of Ethics. The following code of ethics shall be binding on all adjusters: a) The work of adjusting insurance claims engages the public trust. An adjuster must put the duty for fair and honest treatment of the claimant above the adjuster’s own interests, in every instance. b) An adjuster shall have no undisclosed financial interest in any direct or indirect aspect of an adjusting transaction… c) An adjuster shall treat all claimants equally; an adjuster shall not provide favored treatment to any claimant. An adjuster shall adjust all claims strictly in accordance with the insurance contract. … f) No adjuster may advise a claimant to refrain from seeking legal advice, nor advise against the retention of counsel to protect the claimant’s interest. … i) An adjuster shall not knowingly fail to advise a claimant of their claim rights in accordance with the terms and conditions of the contract and of the applicable laws of this state… j) An adjuster shall approach investigations, adjustments, and settlements with an unprejudiced and open mind. k) An adjuster shall make truthful and unbiased reports of the facts after making a complete investigation. l) An adjuster shall handle each and every adjustment and settlement with honesty and integrity and allow a fair adjustment or settlement to all parties without remuneration to himself except that to which he is legally entitled. m) An adjuster, upon undertaking the handling of a claim, shall act with dispatch and due diligence in achieving a proper disposition thereof. n) An adjuster shall not undertake the adjustment of any claim concerning which the adjuster is not currently competent and acknowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the adjuster’s current expertise. Another clear violation is the lack of communication and clear false statements made to Claimant by Carrier. The Claimant’s representative has reached out on numerous occasions to obtain the engineering report, or findings from the Carrier’s assessment. This report, or findings have been promised to be provided, yet to date, no report or findings to support the Carrier’s position have been sent. Instead, broken promises regarding the timing of certain disclosures appear to be the only consistent behavior form the Carrier. This constitutes a clear practice of ignoring phone calls, failing to communicate, and a deliberate disregard of the claim and the adjuster’s ethical code of conduct. Not only has there been an egregious lack of communicate, but there have been numerous false statements made by the Carrier to the effect of the above. The Claimant has suffered tremendously from this, and has been the victim of these purposeful delays, and through these misrepresentations for months. Further, Carrier has failed not only to create and implement adequate guidelines for proper investigation and evaluation of claims resulting in statutory violations as set forth above. The evidence shows by failing to review and adhere to the recommendations made by Claimant’s representatives and experts, a reasonable investigation did not occur. This failure by Carrier resulted in a claim where coverage was afforded, but significantly undervalued with an inaccurate assessment of the scope of damages. Misrepresentations regarding the existence of an engineer report from the carrier, the contents of the report, and a realistic timeframe regarding receiving the report has caused unnecessary delay and is solely the fault of the Carrier. Carrier has failed and/or refused to thoroughly, accurately, and completely investigate and evaluate the Complainant’s claim for insurance benefits requiring the Complainant to hire legal counsel. Carrier has violated the following statutory provisions, specifically, Fla. Stat. § 624.155(1)(b)(1); § 624.155(1)(b)(3); & § 626.9541(1)(i)(3)(b) Notwithstanding the insured’s timely filing of insurance, the insurance claim, Carrier has failed to settle this claim despite what has been presented and its own failures in its investigation. As discussed previously, Complainant fully incorporated the above into this section for the basis of establishing the relevant timeline of events. These representations to the Complainant have continued to be utilized to deter them from seeking proper coverage under the Policy. Carrier has failed to promptly settle the Complainant’s insurance claim when the obligation to settle the claim has become reasonably clear. To date, Frontline has continued to refuse to acknowledge its obligation to tender all monies due and owing to the Complainant, as no offers were made. Carrier’s actions are in direct contradiction to its duty to attempt in good faith to settle claims under Fla. Stat. § 624.155 and its previously asserted subparts. Complainant timely filed a claim for insurance benefits as a result of property damage discovered to have been the result of Hurricane Ian. Carrier has failed to create and implement adequate guidelines for proper investigation and evaluation of claims and for training and supervision of employees and adjusters resulting in statutory violations as set forth herein, such as to Fla Stat. § 626.9541(1)(i)(3)(a). Carrier has failed and/or refused to thoroughly, accurately, and completely investigate and evaluate the Complainant’s claim for insurance benefits, as is evidenced by the claim investigation. Carrier’s assigned adjusters acknowledged coverage for minor damages, but failed to acknowledge the full and proper scope of work needed to put the Complainant in a pre-loss condition. This clearly indicated that coverage was extended for this loss. To date, Carrier has failed and refused to tender the proper insurance proceeds to the Complainant. Carrier has refused and/or failed to settle the Complainant’s claim for benefits under the insured’s policy when under all circumstances it could and should have done so had it acted fairly and honestly towards the insured. This is wrongful conduct. Carrier’s failure to perform pursuant to the duties and responsibilities under Florida Statute, the Policy of insurance, and good faith and fair dealing, forced Complainant by and through counsel to file a lawsuit on its behalf. Florida law imposes no requirement to specify a definite cure amount in a civil remedy notice. Talat Enterprises, Inc., v. Aetna Casualty & Surety Co., 753 So. 2d 1278 (Fla. 2000). However, for clarity purposes, to cure the defects outlined in this civil remedy notice, Frontline 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 to Complainant under the policy in the amount of $16,753,564.70 (less any prior payments and applicable deductible) plus all statutory interest to Complainant; (3) Act fairly and honestly towards its insureds and with due regard for their interests in attempting to settle its insureds’ claim. Finally, §624.155(5), Fla. Stat., specifically exposes insurers to the risk of punitive damages should a jury conclude that the acts giving rise to the violation occur with such frequency as to indicate a general business practice and these acts are: (1) willful, wanton and malicious; or (2) in reckless disregard of the rights of its insureds. Should discovery reveal that Carrier’s bad-faith conduct, as referenced above, is a general business practice frequently implemented by Carrier against other insureds, which was done intentionally or in reckless disregard to the insureds’ rights, the Complainant will seek an award of punitive damages from the jury.
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ccambo@camboferry.com 04-21-2025 April 21, 2025 Via E-Mail Only Myrtle Trace Condominium Association Inc. c/o HL Law Group Attn: Brian Lewis, Esq. 2601 East Oakland Park Boulevard #503, Fort Lauderdale, FL 33306 VIA EMAIL: brian@hllawgroup.com RE: Insured: Myrtle Trace Condominium Association Inc. Claim Number: 4199851 Policy Number: AMC–38162-00 DFS Filing Number: 807627 Location: (Various) Venice, Florida 34293 Cause of Loss: Wind/Hurricane Ian Dear Myrtle Trace Condominium Association Inc.: As you may know, my firm has been retained to represent American Coastal Insurance Company (“American Coastal”) in the above-referenced matter. Please allow this letter to acknowledge that American Coastal is in receipt of the Civil Remedy Notice of Insurer Violations bearing Filing No. 807627 (the “Notice”) filed on behalf of Myrtle Trace Condominium Association Inc. (“Complainant” or “Insured”). The Notice is void because it is legally invalid. Beyond that, the allegations in the Notice have no merit. I. The Civil Remedy Notice is legally invalid. The filing of a valid Civil Remedy Notice is a condition precedent to an action brought pursuant to section 624.155, Florida Statutes. Talat Enter., Inc. v. Aetna Cas. & Sur. Co., 753 So. 2d 1278, 1283 (Fla. 2000). Because the statute is in derogation of the common law, it must be strictly construed. Id. “[A]ny statute in derogation of the common law requires strict compliance with its provisions by one seeking to avail himself of its benefits.” Florida Steel Corp. v. Adaptable Devs., Inc., 503 So. 2d 1232, 1234 (Fla. 1986). Section 624.155, Florida Statutes, requires a civil remedy notice to provide specific information to put the insurer on notice of the alleged violation. Additionally, a civil remedy notice must be “specific enough to provide insurers notice of the wrongdoing so the insurer can cure the same within sixty days.” Valenti v. Unum Life Ins. Co. of Am., 8:04CV1615T-30TGW, 2006 WL 1627276, at *2 (M.D. Fla. 2006). Here, the Notice is invalid because it does not contain all of the information required by section 624.155. Also, it is invalid because it lacks sufficient specificity to provide notice to American Coastal of the alleged wrongdoing, as discussed below. First, American Coastal notes that the Notice only lists one property address of the Complainant, although the subject policy of insurance applies to ninety-two (92) insured locations. Because the Complainant only listed one property address, 302-304 Pembroke Dr., Venice, FL, 34293, on the Notice, American Coastal can only assume that the Notice’s allegations are limited to just the listed property address and responds accordingly. Additionally, the subject Notice also inexplicably references “Frontline” in three sections of the Notice. American Coastal notes that Frontline is a different Insurer in the state of Florida and this correspondence only responds to allegations alleged against American Coastal. Second, the Notice fails to relate the specific policy language to the alleged violation as required by Fla. Stat. §624.155(3)(b)4. With regard to the policy language relevant to the alleged violation, the Notice cites to twenty-four (24) different portions or sections of the subject policy of insurance but does not relate these portions or sections of the subject policy to the alleged violations in any way. Pursuant to Fla. Stat. §624.155(3)(b)4, the Notice must cite to the specific policy language that is relevant to the alleged violations. However, the failure to relate any of the cited policy portions or sections to the alleged violations in dispute prevents American Coastal from addressing any issues regarding the policy the Complainant alleges to have been violated, which is the underlying purpose of Fla. Stat. §624.155(3)(b)4. The Notice, therefore, is statutorily deficient because it does not comply with the requirements set forth in Fla. Stat. §624.155(3)(b)4. Third, the Notice lacks sufficient specificity to provide notice of the alleged bad-faith conduct. The Notice lists three (3) different statutes which American Coastal allegedly violated. However, the Notice fails to provide any relevant facts supporting the alleged violations or relating these alleged violations to the three (3) cited statutes. Because the Civil Remedy Notice fails to relate the cited statutes to any facts to support why the Insured believes American Coastal violated the statutes, American Coastal is unable to properly respond, and the Notice is invalid and should be rejected and returned. Moreover, the Notice does not list the Complainant’s e-mail address instead it provides the email of counsel for the Complainant, BRIAN@HLLAWGROUP.COM. See Pin-Pon Corp., 500 F. Supp. 3d 1336 (S.D. Fla. 2020); Demase v. State Farm Fla. Ins. Co., 2022 Fla. App. LEXIS 7760 (Fla. 5th DCA 2022). Finally, the Notice is invalid because it conditions American Coastal’s ability to “cure” by requiring American Coastal to pay for things and do things that are not required under Talat. In Talat, the Florida Supreme Court said that to “cure” a Notice, an insurer must pay the amount owed pursuant to the express terms and conditions of the policy.” However, the Notice here demands payment of money that is not owed pursuant to the policy, such as interest. The Notice here also improperly demands American Coastal to: “(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;” and “3) Act fairly and honestly towards its insureds and with due regard for their interests in attempting to settle its insureds’ claim.” It is improper to demand such items as a cure for a civil remedy notice. Talat, 753 So. 2d at 1282–83; see also Francois v. Illinois Nat. Ins. Co., 01-CV-8070, 2002 WL 33760405, at *4 (S.D. Fla. 2002) aff'd, 49 Fed. Appx. 290 (11th Cir. 2002) (discussing whether a demand of attorneys’ fees in a civil remedy notice is proper). Because the Notice fails to comply with the information requirements promulgated by the Department of Financial Services, it is legally invalid. See Pin-Pon Corp. v. Landmark Ins. Co., 2020 U.S. Dist. LEXIS 100072, *7 (S.D. Fla., June 5, 2020); Julien v. United Property & Casualty Insurance Company, 311 So. 3d 875 (Fla. 4th DCA 2021). Again, in serving this response, American Coastal reserves all rights under Florida law to be served with a properly completed and statutorily compliant Notice. As the Notice fails to strictly comply with the requirements of section 624.155, Florida Statutes, it is legally insufficient and should be rejected. II. The Civil Remedy Notice Lacks Merit. The Notice also lacks merit. American Coastal issued a commercial policy bearing policy no.: AMC-38162-00 (the “Policy”) to Complainant to provide certain coverage for the ninety-two (92) insured locations at various addresses in Venice, FL, 34293, for the period of October 15, 2021 to October 15, 2022. The policy provides coverage subject to a 5% Hurricane deductible per loss location. On October 20, 2022, the Complainant reported a claim as having occurred as a result of Hurricane Ian with a date of loss of September 28, 2022. American Coastal assigned claim number 4199851 to the loss. American Coastal has adjusted and investigated the subject claim in accordance with Florida Law and the subject policy of insurance. American Coastal’s coverage decision and the issued payment is supported by the investigation of the subject claim. Below is a portion of the claims handling timeline for the subject claim summarizing in part American Coastal’s investigation and coverage decision. On October 21, 2022, American Coastal sent the Insured an Acknowledgement of Claim Letter regarding the subject claim. On November 30, 2022 through December 3, 2022, American Coastal, through a field adjuster and building consultant, inspected the insured property’s ninety-two (92) insured locations and documented the observable damages for American Coastal’s review. All inspections throughout this claim were coordinated through representatives of the Insured on an agreed upon date and time. On December 16, 2022, American Coastal sent the Insured an Advanced Payment Letter noting the investigation was still under way and while a coverage decision had not been made advanced payment was being issued at this time. American Coastal subsequently issued an advance payment in the amount of $100,000.00. On June 22, 2023, American Coastal issued a Coverage Determination letter. This letter described American Coastal’s continued investigation of the subject claim including the inspection by American Coastal’s Field Adjuster with a Building Consultant present. This letter noted that after consideration of the applicable deductibles and the prior advanced payment amount, no further payments were due at this time. This letter also stated, “Your policy allows for reimbursement for those depreciated items not exceeding the total cost to repair or replace, subject to policy limits. Once the repairs are completed, please submit your proof of completion of these, repairs or replacement.” On November 2, 2023, American Coastal issued a Reservation of Rights and Request for Documentation Letter noting it is continuing to investigate the Subject Claim pursuant to a full reservation of rights. This letter also requested documentation and information related to the subject claim including the insured’s contractor’s estimate/scope of necessary repairs. American Coastal subsequently retained Compass Building Services, general contractor, to perform a reinspection and estimate On February 28, 2024 through March 6, 2024, Compass Building Services performed their reinspection of the subject property. Compass Building Services opined that the observed roofing damages were repairable. Compass Building Services subsequently prepared an estimate of the necessary repairs observed during their inspections and provided this estimate to American Coastal on April 2, 2024. On April 15, 2024, American Coastal issued a Supplemental Coverage Determination letter attaching a copy of Compass Building Services’ estimate. This letter noted, “As part of our continued investigation, Compass Building Services was engaged to inspect the risk and provide a report and estimate of the damages associated with Hurricane Ian. We have reviewed your insurance policy, and note that the damage does not exceed deductible per the respective locations with the exception of location no. 5. After application of the recoverable depreciation and deductible, the actual cash values net is $74,802.42. However, no further payment is due as the actual cash value did not exceed the advance payment of $100,000.00.” This letter also described the portions of the Complainant’s claim that were not covered. On July 8, 2024, Recovery Insurance Adjuster, the insured’s public adjuster, emailed American Coastal providing a Recovery Insurance Adjuster’s estimate totaling $16,758,822.46. On August 2, 2024, American Coastal issued a Reservation of Rights and Request for Documentation letter. This letter noted that after the April 15, 2024 Supplemental Coverage Determination letter, American Coastal followed up with the insured and/or their representatives on May 15, 2024. Shortly after this communication, American Coastal received an email from Recovery Insurance Adjuster’s advising they were retained by the Insured. Although no further documentation other than Recovery Insurance Adjuster’s estimate was provided to American Coastal prior to this letter being sent. On August 20, 2024, the Complainant provided American Coastal a Sworn Statement in Proof of Loss executed on August 20, 2024 with a Whole Loss Total of $16,758,822.46. On August 28, 2024, American Coastal issued a Response to Sworn Statement in Proof of Loss Letter advising that it neither accepted nor rejected the Sworn Statement in Proof of Loss, and that it did not agree to statements made in the Proof of Loss pertaining to the amount of Whole Loss Total or to the Amount Claimed. On February 20, 2025, the subject Civil Remedy Notice of Insurer Violation with Filing Number 807627 was filed with the Florida Department of Financial Services. After the subject Notice was filed, Counsel for the Complainant and Counsel for American Coastal have conferred regarding the subject claim. Subsequently, the parties, Complainant and American Coastal, agreed to proceed with private mediation to resolve all remaining disputes related to the subject claim. The parties have scheduled this private mediation to occur on May 13, 2025. American Coastal does not, by this letter or otherwise, waive any rights or defenses relating to the existence of coverage or liability for the alleged loss. American Coastal also reserves the right to rely upon any policy defenses, limitations, exclusions and conditions that are warranted but not mentioned herein. All rights and defenses are specifically and expressly hereby reserved. As outlined above, American Coastal has abided by the Subject Policy of Insurance and stands by its coverage decision and payment on this claim. As such, American Coastal has complied with all policy conditions and applicable Florida law regarding the subject claim. In light of American Coastal’s investigation, coverage was properly accepted under the subject claim and payment was properly issued, pursuant to the terms, conditions, exclusions, limits and deductibles of the subject policy. Accordingly, American Coastal denies any and all allegations of bad faith in connection with the subject claim. If you have any questions, please do not hesitate to contact me. Sincerely, /s/ Michael J. Neusaenger, Esq. Michael J. Neusaenger, Esq.
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