Filing Number: 810053
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| Filing Accepted: 3/7/2025 |
| Last/Business Name
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TUTSCH
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First Name |
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MATTHEW |
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| Street Address
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4931 KLOSTERMAN OAKS BLVD. |
| City, State Zip
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PALM HARBOR,
FL
34683
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| Email Address
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WITHHELD |
| Complainant Type:
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Insured |
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| Last/Business Name* |
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TUTSCH |
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First Name |
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MATTHEW |
| Policy # * |
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HOH160332 |
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Claim #* |
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H010018315 |
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Attorney is Applicable
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| Last Name* |
BURKE
First Name *
RYAN
Initial
S
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| Street Address* |
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575 SECOND AVENUE SOUTH, SUITE 201 |
| City, State Zip* |
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SAINT PETERSBURG
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FLORIDA
33701
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| Email Address * |
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PLEADINGS@DICUSBURKELAW.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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HERITAGE PROPERTY & CASUALTY 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 14407 |
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| Name of individual responsible for violation (if any):*
AMOYA POWELL
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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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Unreasonable investigation
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Other
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Making material misrepresentations to the insured
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Other
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Misrepresenting insurance policy provisions to the insured
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Other
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Misconduct toward insured
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Statutory provision(s) which the insurer allegedly violated.
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| 624.155(1)(b)(1) |
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Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.
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| 624.155(1)(b)(3) |
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Except as to liability coverages, failing to promptly settle claims, when the obligation to settle a claim has become reasonably clear, under one portion of the insurance policy coverage in order to influence settlements under other portions of the insurance policy coverage.
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| 626.9541(1)(i)(2) |
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A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy.
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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)(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.
SECTION I – PERILS INSURED AGAINST
COVERAGE A – DWELLING and COVERAGE B –
OTHER STRUCTURES
We insure against risk of direct loss to property described
in Coverages A and B only if that loss is a
physical loss to property…
SECTION I – CONDITIONS
3. Loss Settlement. Covered property losses are
settled as follows:
a. Property of the following types:
(1) Personal property;
(2) Awnings, carpeting, household appliances,
outdoor antennas and outdoor equipment,
whether or not attached to buildings; and
(3) Structures that are not buildings;
at actual cash value at the time of loss but not
more than the amount required to repair or replace.
10.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. Loss will be payable 60 days after we receive
your proof of loss and:
a. Reach an agreement with you;
b. There is an entry of a final judgment; or
c. There is a filing of an appraisal award with us.
SPECIAL PROVISIONS FOR FLORIDA
FOR USE WITH HPC HO 00 03
ADDITIONAL COVERAGES
2. Reasonable repairs is deleted and replaced by the
following:
2. Reasonable Emergency Measures
a. We will pay up to the greater of $3,000 or 1% of
your Coverage A limit of liability for the
reasonable costs incurred by you for necessary
measures taken solely to protect covered
property from further damage, when the
damage or loss is caused by a Peril Insured
Against.
b. As it pertains to protecting and/or covering the
roof:
(1) We will reimburse you to install a
temporary protective roof covering in an
emergency circumstance, up to 2% of the
Coverage A limit of liability;
(2) We will reimburse you for the cost to
remove and reset the roof covering in (1) to
allow for our initial inspection if the claim is
reported within 7 days of the first
documented installation of the roof
covering;
(3) We will not reimburse you for the cost to
remove and reset a temporary protective
roof covering to allow you or your
consultants to inspect, however, in the
event the tarp is blown off or damaged by
weather, we will reimburse you for the cost
to remove and reset a roof covering, up to
the limits set forth in (1); and
(4) We will not pay more than the limit set forth in
(1) for any type of roof covering, including but
not limited to shrink wrap, installed to protect
the roof after a loss.
(5) This 2% temporary emergency roof covering
limit is additional insurance, separate and apart
from the $3,000 or 1% limit in a. above.
c. We will not pay more than the amount in a. above,
unless we provide you approval within 48hours of
your request to us to exceed the limit in a. above. In
such circumstance, we will pay only up to the
additional amount for the measures we authorize.
d. If we fail to respond to you within 48 hours of your
request to us and the damage or loss is caused by a
Peril Insured Against, you may exceed the amount
in a. above only up to the cost incurred by you for
the reasonable emergency measures necessary to
protect the covered property from further damage.
e. If however, form HO 03 51 or HO 0352 is part of your
Policy and a covered loss occurs during a
“Hurricane” as described in HO 03 51 or HO 03 52,
the amount we will pay under this additional
coverage is not limited to the amount in a.above.
f. A reasonable measure under this Additional
Coverage 2. may include a permanent repair
when necessary to protect the covered property
from further damage or to prevent unwanted
entry to the property. To the degree reasonably
possible, the damaged property must be
retained for us to inspect.
g. This coverage does not:
(1) Increase the limit of liability that applies to
the covered property;
(2) Relieve you of your duties, in case of a loss to
covered property, as set forth in SECTION I –
CONDITION 2., Your Duties After Loss; or
(3) Pay for property not covered, or for repairs
resulting from a peril not covered, or for loss
excluded in this policy.
Paragraph 10. Loss Payment is deleted and replaced by
the following:
10. 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. In the event that
any repair services were performed under the Our
Option provision, we will pay the retained contractor
directly for those services or part or portion of any
services the retained contractor performs or
provides. For all other claims payments, we will pay
you unless some other person is named in the policy
or is legally entitled to receive payment.
Loss will be paid upon the earliest of the following:
a. 20 days after we receive your written proof of
loss and reach a written, executed agreement of
settlement with you according to the terms of
the written agreement; or
b. Within 60 days after we receive your proof of loss;
and:
(1) There is an entry of a final judgment or, in
the case of an appeal from such judgment,
within 60 days from and after the affirmance
of the same by the appellate court; or
(2) There is a written executed mediation
settlement with us according to the terms of
the written mediation settlement; or
(3) There is a filing of an appraisal award with us;
or
c. Within 60 days after we receive notice of an initial
claim, “reopened claim” or “supplemental claim”
from you, we will pay or deny such claim or portion
of the claim unless the failure to pay such claim or
portion of claim is caused by factors beyond our
control which reasonably prevent such payment.
Our failure to comply with this paragraph shall not
form the sole basis for an action against us for
breach of contract under this policy or for benefits
under this policy.
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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.
PURSUANT TO SECTION 624.155, F.S. please indicate all statutory provisions alleged to have been 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)(2) A material misrepresentation made to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy.
626.9541(1)(i)(3)(a) Failing to adopt and implement standards for the proper investigation of claims.
626.9541(1)(i)(3)(b) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue.
626.9541(1)(i)(3)(c) Failing to acknowledge and act promptly upon communications with respect to claims.
626.9541(1)(i)(3)(d) Denying claims without conducting reasonable investigations based upon available information.
626.9541(1)(i)(3)(g) Failing to promptly notify the insured of any additional information necessary for the processing of a claim.
69O-220.201(4)(f) An adjuster, upon undertaking the handling of a claim, shall act with dispatch and due diligence in achieving a proper disposition thereof.
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FACTS OF THE CASE:
Heritage Property & Casualty Insurance Company (“Heritage”) committed the following in the handling of the Insured’s claim: 1) failing to pay benefits owed; 2) failure to act in due diligence and good faith to resolve claims; 3) placing the financial interest of the insurer before that of the policy holder; 4) failure to properly train, evaluate, and manage adjusters retained to represent the policies and procedures of Heritage; 5) looking for ways to delay the proper handling of the insured’s claim; 6) looking for ways to deny the Insured’s claim; 7) looking for ways to reduce recovery to the Insured; 8) performing an inadequate investigation; 9) Failing to promptly pay the full benefit owed to the Insureds; 10) Misrepresenting pertinent facts or insurance policy provisions relating to coverages at issue; and 11) making a material misrepresentation to an insured or any other person having an interest in the proceeds payable under such contract or policy, for the purpose and with the intent of effecting settlement of such claims, loss, or damage under such contract or policy on less favorable terms than those provided in, and contemplated by, such contract or policy. The reasons for this may be attributed to improper training, supervision, and/or motivation of outside adjusters and claims supervisors to promptly and fairly adjust and pay full benefits available to the Insured. The Insurer may have failed to adopt proper standards of investigation and adjustment of losses or is otherwise not implementing those standards because a proper investigation and full and prompt payment for the loss is not occurring.
Despite the Insured’s notification to Heritage of their insurance claim, Heritage failed in tendering to the Insured all proceeds due and owing under the subject policy of insurance. Despite the Insured’s pleas otherwise, Heritage has failed to acknowledge its obligations under the subject policy of insurance and tender the coverage the Insureds are contractually owed.
Mr. Matthew Tutsch (the “Insured”) insured their home located at 4931 Klosterman Oaks Blvd., Palm Harbor, Florida 34683 with Heritage Property & Casualty Insurance Company with coverages beginning and or renewing on or around October 11, 2023. It was during this policy period, on or around April 3, 2024, that Mr. Tutsch suffered a covered loss to the property. On this date, a powerful windstorm impacted the Tutsch’s home causing significant, open and obvious damage to the roofing system.
Following the reporting of the claim to Heritage, Heritage conducted a lackluster claim investigation that failed to take into consideration basic adjusting guidelines, the age or condition of the roof, repairability of the roof, the mandates of the Florida Building Code – Existing Structures.
On April 29, 2024, Heritage sends a coverage determination letter authored by Amoya Powell where in they state that unfortunately since the damage to the shingles is “not from a windstorm or hailstorm, we are unable to cover the claim”. The letter continues that” based upon our investigation, there is no evidence of wind and hail damage to the roof or any exterior elevation”.
On August 27, 2024, the Insured had a forensic engineer inspect the property and issue a report. In this report a Professional Engineer opines that “A review of historic weather data supports the opinion that the severe weather event that occurred on/or about the date of reported loss was the probable storm event that caused the reported roof covering and interior finish moisture damage to the subject property. The report also states “The following listed observations of damages described below are not to be construed as a condition survey of the roof covering or other building components for the subject property.
• Shingles with granular loss due to wind-borne debris impacts were observed on the right facing and front facing roof slopes.
• Lifted shingle tabs with linear granular loss were observed on multiple roof slopes. The majority of damage was documented on the front and right facing roof slopes of the subject property.
• Bending of unsealed shingles resulted in audible mat fracturing and loss of granular adhesion at less than 45 degrees of flexural rotation.
• Areas of reported associated interior finish moisture damage were documented down-gradient from the documented asphalt shingle roof covering damage.
• Damage to the asphalt shingles was inspected for weathering indicators such as frayed edges and oxidized bitumen. These observations indicated that pre-loss damaged shingles existed on the roof covering for a small percentage of the total damage.”
Mr. Tutsch had a tarp installed to mitigate his damages. Mr. Tutsch was responsible for removing and replacing the tarp for each inspection conducted by Heritage throughout this heinous claim investigation. He is now responsible for the cost of the original tarp and each instance of removal and replacement due to Heritage’s negligence.
On October 4, 2024, Heritage, through Amoya Powell, sends additional correspondence to Mr. Tutsch again denying his claim and stating” Thank you for the opportunity to help you during this difficult time. Heritage Insurance Companies has concluded, to the extent possible, its investigation of the above-referenced claim. The claim was reported with a date of loss of April 03, 2024, and was reported on April 17, 2024. The claim was reported 14 days after the reported date of loss. You submitted this claim under policy number HOH160332 effective October 11, 2023, to October 11, 2024. During your reporting of the claim, you advised that roof damages and interior moisture stains were present, which you attributed to a recent storm event. No coverage was found for the interior damages as the moisture stains were not caused by a storm-created opening, and the roof damages were attributed to wear and tear and deterioration, not related to the claimed date of loss. Please see below for a detailed explanation of our coverage decision. Upon receipt of notice of the claim, Heritage assigned a field adjuster to inspect your property. The field adjuster conducted an inspection on April 22, 2024. You advised that the damage occurred during a storm on April 3, 2024. The inspection included the roof, where 43 creased shingle tabs were observed, with 18 creased tabs on the front slopes and 25 on the rear slopes. No exterior damages were found at the time of inspection.”
The letter continues” However, the damages reported are not covered due to the incorrect date of loss and the nature of the damages being attributed to wear and tear and deterioration, which are specifically excluded under your policy.”
Heritage states that creased shingles and tabs were observed, but that this does not constitute exterior damages and that the nature of said damages is solely wear and tear. The use of such language with the knowledge and information that has been provided to Heritage is merely a tactic to have their Insured abandon their claim and walk away. In addition, language used in this letter which suggestive that the Insured reported the loss in less than a timely manner, is inappropriate considering the loss was reported timely. Heritage, not surprisingly, was not timely in the releasing a coverage determination.
As a result of the bad faith handling of their valid insurance claim, Mr. Tutsch was forced to retain my firm in order to bring a full and fair resolution to their claim and they are now obligated to my firm for their contractual fees and costs.
Fla. Stat. s. 624.02 defines insurance as a contract whereby one undertakes to indemnify another or allow specified amount or a determinable benefit upon determinable contingencies. Inherent is the fact that payment must be made timely and promptly so that the insured may mitigate its damages and put the structure and business operation back to the condition it was in prior to the loss as quickly as possible; Heritage clearly breached this duty.
Heritage failed to adhere to basic adjusting guidelines and acted in its own self-interest rather than in the interests of its Insureds. Heritage’s behavior throughout the claims process is characterized by bad faith and dishonest trade practices.
The actions taken by Heritage in the mishandling of this claim were willful, wanton, and in complete disregard of the rights of its Insureds and occurred with such a frequency in this case as to indicate a general business practice and are in violation of Fla. Stat. §§ 624.155 and 626.9541.
Heritage’s actions include but are not limited to the following:
1. CLAIM DELAY
2. UNSATISFACTORY SETTLEMENT OFFER
3. FAILING TO CONDUCT A PROPER INVESTIGATION
4. NOT TREATING THE POLICYHOLDER WITH GOOD FAITH CLAIMS CONDUCT
5. LOOKING FOR WAYS TO REDUCE RECOVERY TO THE INSURED
6. LOOKING FOR WAYS TO DELAY FULL RECOVERY TO THE INSURED
7. NOT ADJUSTING CLAIMS AND EVALUATING LOSS PROPERLY, PROMPTLY
AND FAIRLY TO PROVIDE FULL AND PROMPT INDEMNITY TO THE INSURED
8. FAILING TO IMPLEMENT PROPER STANDARDS FOR THE ADJUSTMENT AND
INVESTIGATION OF CLAIMS
9. NOT TRAINING, SUPERVISING OR MANAGING ADJUSTERS PROPERLY SO
THAT PROMPT AND FULL PAYMENTS ARE MADE, BUT RATHER PLACING
THE COMPANY’S INTERESTS BEFORE THE POLICYHOLDERS’ INTERESTS
10. ESTABLISHING SEVERITY CONTROL INITIATIVES AND OTHERWISE
ESTABLISHING A CULTURE OF NOT FULLY AND PROMPTLY PAYING CLAIMS FOLLOWING LOSSES
11. MATERIALLY MISREPRESENTING FACTS AND THE INSURANCE POLICY
PROVISIONS
12. FAILING TO ACKNOWLEDGE AND/OR COMMUNICATE REGARDING CLAIMS
COMMUNICATIONS
14. FORCING AN INSURED TO ADJUST HER OWN LOSS.
Therefore, to cure the defects outlined in this Civil Remedy Notice, the carrier must:
TENDER $64,565.81 LESS THE APPLIABLE POLICY DEDUCTIBLE.
A copy of this form submitted to the FDFS has been transmitted to the following parties providing them notice of the filing of this Civil Remedy Notice:
Certified Mail: 7022 3330 0000 8444 3304
Heritage Property & Casualty Insurance Company
2600 McCormick Dr., Suite 300
Clearwater, FL 33759
cc: claims@heritagepci.com
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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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