Filing Number: 808563
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| Filing Accepted: 2/26/2025 |
| Last/Business Name
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SANTIAGO
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First Name |
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MARIANO AND MARIA |
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| Street Address
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927 SE 19TH TERRACE |
| City, State Zip
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CAPE CORAL,
FL
33914
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| Email Address
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EMAIL@AVELAWFIRM.COM |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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SANTIAGO |
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First Name |
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MARIANO AND MARIA |
| Policy # * |
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PFL420783-02 |
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Claim #* |
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CFL22592107 |
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Attorney is Applicable
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| Last Name* |
GONZALEZ
First Name *
MAYLE
Initial
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| Street Address* |
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3001 TAMIAMI TRAIL NORTH |
| City, State Zip* |
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NAPLES
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FLORIDA
34103
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| Email Address * |
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EMAIL@AVELAWFIRM.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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PEOPLE'S TRUST 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 13125 |
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| Name of individual responsible for violation (if any):*
JOHNETTA DIXON
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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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Unfair Trade Practice
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Statutory provision(s) which the insurer allegedly violated.
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| 624.155(1)(b)(1) |
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Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.
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| 624.155(1)(b)(2) |
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Making claims payments to insureds or beneficiaries not accompanied by a statement setting forth the coverage under which payments are being made.
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| 624.155(1)(b)(3) |
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Except as to liability coverages, failing to promptly settle claims, when the obligation to settle a claim has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage.
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| 626.9541(1)(i)(3)(a) |
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Failing to adopt and implement standards for the proper investigation of claims.
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| 626.9541(1)(i)(3)(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)(d) |
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Denying claims without conducting reasonable investigations based upon available information.
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| 626.9541(1)(i)(3)(f) |
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Failing to promptly provide a reasonable explanation in writing to the insured of the basis in the insurance policy, in relation to the facts or applicable law, for denial of a claim or for the offer of a compromise settlement.
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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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| 626.9541(1)(i)(3)(h) |
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Failing to clearly explain the nature of the requested information and the reasons why such information is necessary.
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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.
COVERAGE A-DWELLING
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Facts and circumstances giving rise to the violation.
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To whom it may concern:
Pursuant to Florida Statutes §624.155, and in compliance with Florida Statutes §624.155(3)(b)2 & (3)(b)4, please allow this correspondence to serve as Maria Santiago and Mariano Santiago’s (the “Insureds” or the “Complainants”) formal notice to pursue a bad faith action against Peoples Trust Insurance Company (“PEOPLES TRUST”), relating to, and stemming from, a multitude of statutory violations associated with PEOPLES TRUST’S handling of the Insureds’ aforementioned insurance claim. In Florida, the profession of adjusting insurance claims involves a special relationship of trust with the public. As such, insurance adjusters and insurance company claim representatives are imposed with a duty of good faith during the settlement process. An insurance policy is obtained by homeowners to protect against unknown disasters, catastrophes, and misfortunes, which may or may not ever occur. The policyholder, after paying premiums and expecting protection against a loss, is in an especially vulnerable economic and personal position when an unexpected loss occurs. The entire purpose of insurance is defeated if those involved with insurance adjustment can refuse or delay the prompt and full payment of monies due under the policy/contract.
The facts and/or circumstances presented below affirmatively corroborate the Insureds’ contention that PEOPLES TRUST violated the Florida Statues at issue, which include but are not limited to: improper claim handling, inadequate investigation, improper delay without justification, failing to adequately and promptly communicate, failing to provide reasonable explanations, making misrepresentations, general business practices, unfair or deceptive trade practices, and unsatisfactory settlement offers or practices.
By way of brief background, on or about September 28, 2022, the Complainants’ property sustained significant damage (the “Loss”) as a result of Hurricane Ian. Specifically, the Property’s roof sustained significant damage, multiple flying debris hit the property’s interior sustained damage from water intrusion, and the property’s exterior elevations sustained significant damage.
The Complainants reported the Loss to PEOPLES TRUST, and PEOPLES TRUST sent Kenneth Taylor to inspect the subject property on or about November 9, 2022. At the time of the inspection, a tarp had been requested by the Insureds to address the extensive roof damage and the water intrusion in the main living area. For reasons unknown, the carrier did not ever provide emergency mitigation services for the property despite the Insureds’ request.
Following Mr. Taylor’s inspection, the carrier issued its coverage determination letter advising the Insureds that the property sustained hurricane damage, accompanied by Mr. Taylor’s estimate totaling $23,493.17 for a roof replacement and some exterior elevation repairs to the pool cage, etc. The carrier, in an attempt to rid itself of the claim, mailed a check to the Insureds for the claim less their deductible with the caveat that should they deposit the check, the claim would be considered settled. Please note that no allotment was made for the interior damage of the home that had started forming and emergency services were never offered.
The Insureds attempted to get an explanation from the carrier regarding the initial decision, but to no avail. They found themselves having to secure their own tarp for the property and later had to retain the undersigned counsel to assist with the loss. On August 16, 2023, once a comprehensive damage assessment was completed, the Insureds provided PEOPLES TRUST with a comparative estimate of damages for $80,967.02 and provided it along with a Sworn Statement in Proof of Loss. Subsequently, a Notice of Intent to Litigate was filed due to the carrier’s representatives failing to understand the scope of the loss in its entirety. PEOPLE’S TRUST responded to the Notice of Intent to Litigate offering $20,000.00 to settle the claim in its entirety or appraisal in the alternative to that. The parties engaged in negotiations and the Insureds’ counsel provided extensive evidence of the damage to the property that was not properly considered during the initial claim adjustment.
To make matters worse, the insurers are currently unable to insure the property in its current condition and have been without an active insurance policy since the subject policy expired.
On December 8, 2023, PEOPLES TRUST, sued the Insureds for breach of contract, falsely claiming that repairs had been completed at the property in violation of the Option to Repair endorsement on the subject policy. This is not PEOPLE TRUST’s first tilt suing its own customers. The Sun Sentinel has written extensively on this carrier and the hundreds of lawsuits it filed against its own customers following Hurricane Irma and Hurricane Ian. The extensive litigation history of PEOPLE’S TRUST would support the notion that litigation is used as a strong-arm tactic against policyholders to allow for the carrier to continually underpay claims and/or force insureds to accept pennies on the dollar of what their claims are worth to avoid drowning in legal fees to defend themselves in these predatory actions.
The parties entered into the carrier elected appraisal process on June 12, 2024. As the carrier’s dilatory tactics continued for close to two years following the loss, and the property’s roofing system was severely compromised, the living room ceiling completely collapsed on September 26, 2024, causing additional damage to the property’s interior, flooring, front door, and baseboards. This could have been avoided had PEOPLE’S TRUST properly adjusted the claim following the date of loss, allowing for the Insureds to complete their repairs and be prepared for the rainy seasons to follow.
During the appraisal process, the carrier retained an engineer, Jaime Collantes PE with Omega Forensic, to inspect the property’s flooring as the comparative estimate on behalf of the Insureds accounted for the extensive water damage to the flooring and baseboards. This inspection took place on August 23, 2024 and Mr. Collantes was at the property for nine (9) minutes before hurriedly leaving. Not surprisingly, Mr. Collantes opined that the clearly visible and undeniable evidence of damage to the flooring, baseboard, and wood front door was not related to Hurricane Ian, despite it never having existed or been present at the property prior to the storm. As a result of the carrier sending an engineer, the Insureds retained Edwin Witty PE to perform a forensic inspection of the flooring and expended over $4,000.00 in order to have an expert opinion in relation to damage that could be seen with the naked eye.
On February 7, 2025, the appraisal panel rendered its award totaling $133,137.87 replacement cost value, $109,644.70 over the carrier’s initial pricing and scope of damages for the property of $23,493.17, and $52,170.85 over the insureds’ initial comparative estimate.
At this juncture, it appears the carrier is stalling or attempting to continue to stone wall the Insureds, who have been attempting to resolve this claim for almost three (3) years and are eager to move on with their lives and complete the necessary repairs, especially considering the heavy rains and forecasts for the 2025 hurricane season. The Insureds have been met with scare tactics and threats under the guise of settlement checks at the onset of their claim; they never received the requested and desperately needed emergency services from the carrier; their comparative estimate of damages was ignored and only nominal offers were made to resolve their claim; the carrier sued them, forcing them to expend out of pocket costs to defend themselves in a frivolous action filed solely to intimidate and terrify them; and as if that wasn’t enough, the carrier now contends that the insureds should participate in the Option to Repair program managed by this unscrupulous carrier and expecting the insureds to trust PEOPLE’S TRUST after everything they have been put through and endured over their loss.
The carrier is required to properly investigate and adjust claims and cannot place that burden upon the insured. This was made clear by the Florida Supreme Court in Allstate Indemnity Co. v. Ruiz, 899 So. 2d 1121 (Fla. 2005) (“The Legislature has clearly chosen to impose on the insurance companies a duty to use good faith and fair dealing in processing and litigating the claims of their own insureds…”). The Insureds have complied with all requests made by PEOPLES TRUST and provided all the information available to them with respect to the loss. The Insureds have received neither a request for additional information nor an explanation from PEOPLES TRUST for its delay in settling their claim nor its insistence on blocking the true assessment of damages.
To date, PEOPLES TRUST has failed and/or refused to provide the Insureds with the insurance benefits due and owing, undisputed or otherwise, despite knowing that the property has sustained damage as a result of a covered peril. Despite the Insureds’ repeated pleas, PEOPLES TRUST has not tendered the full amount needed to return the property to its pre-loss condition. PEOPLES TRUST was bound to conduct itself with the utmost good faith for the benefit of their Insured. However, PEOPLES TRUST failed to comply with the obligations in connection with this claim. PEOPLES TRUST has demonstrated an established pattern of retaining individuals who continuously fail to adjust and evaluate the present claim in good faith or who are prevented from doing so by the carrier itself, which is a clear violation of the aforementioned Florida Statutes. Specifically, PEOPLES TRUST’s refusal to consider the Insured’s consultant’s findings during its investigation of the subject claim; the dangling of a nominal funds by way of a “settlement check” for the undisputed amount of damage to the property; suing the insureds; and demanding that they continue to spend thousands of dollars to confirm damage that is visible to the common lay person.
Though liability is clear, and despite multiple demands to resolve this matter, PEOPLES TRUST has failed to act honestly and fairly towards the Insureds regarding settlement. This not only violates the foregoing cited statutes, but also Fla. §626.9541(1)(i)(2). PEOPLES TRUST’s handling and adjustment of the Insureds’ claim, and the conduct of the adjusters, supervisors, management and individuals associated with or retained by PEOPLES TRUST is evidence that it has failed to create and implement adequate guidelines for proper investigation and claims handling and for training and supervision of employees. PEOPLES TRUST has failed to adopt and implement standards for the proper investigation of claims as required by Florida Statutes §626.9541(1)(i)(3)(a). To date, the Insureds have incurred and continue to incur significant damages as a result of PEOPLES TRUST’s actions.
Based on the foregoing violations, it is clear that PEOPLES TRUST’s actions, including but not limited to: 1) failure to pay the claim in full; 2) failure to promptly investigate the claim; 3) failure to properly investigate the claim; 4) failure to adjust the loss; 5) failure to act in due diligence and good faith to resolve the claim; 6) placing the financial interest of Insurer before that of policy holders and claimants; 7) failure to properly train, evaluate and manage adjusters; and 8) looking for ways to deny coverage, pay less, delay payment and otherwise "low ball" or "stone wall" the claim support the Insured’s position that proper systems are not in place to investigate claims.
Therefore, to cure the defects outlined in this Civil Remedy Notice, PEOPLES TRUST must:
(1) Create and implement adequate guidelines for proper investigation and evaluation as to claims handling and for the training and supervision of employees, which will avoid future statutory violations as set forth above, and to avoid this from occurring in the future;
(2) Create and implement adequate guidelines for the proper investigation and evaluation of these types of claims, and for the training and supervision of employees with regard to these types of claims to ensure PEOPLES TRUST’s claim handling procedures with regard to these types of losses are adequate to stop further Insured from being treated unfairly and wrongfully;
(3) Assist the Insureds in mitigating their damages;
(4) Immediately tender all undisputed insurance proceeds to the Insureds totaling $133,137.87, less the subject deductible, while continuing to adjust the loss with the Insureds;
(5) Immediately tender all insurance benefits due and owing to the Insureds under the policy pursuant to the relevant policy provisions provided therein that would reasonably place the Insureds back to their pre-loss condition, to include the estimate of damages amount of $133,137.87, less the applicable deductible, and including, but not limited to all interest due and owing under applicable Florida Statutes.
Sincerely,
Mayle Gonzalez, Esq.
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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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