Filing Number: 812209
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| Filing Accepted: 3/20/2025 |
| Last/Business Name
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| Street Address
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1205 E PARK CIRCLE |
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TAMPA,
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33604
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| Email Address
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WITHHELD |
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Insured |
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| Last/Business Name* |
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GIDDENS |
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First Name |
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GRACE |
| Policy # * |
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12-1176649-02 |
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Claim #* |
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12-3026012-24 |
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Attorney is Applicable
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| Last Name* |
WALLACE
First Name *
BLAKE
Initial
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| Street Address* |
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8635 W. HILLSBOROUGH AVE., STE. 401 |
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TAMPA
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FLORIDA
33615
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| Email Address * |
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BLAKE@KLINGLAW.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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TYPTAP INSURANCE COMPANY
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| Insurer Name* |
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| Street Address* |
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,
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NAIC Company Code 15885 |
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| Name of individual responsible for violation (if any):*
TRACI LEBEDA AND MARK TERRY
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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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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)(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)(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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Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.
D. Loss Settlement.
In Condition D., the terms "cost to repair or replace" and "replacement cost" do not include the increased costs incurred to comply with the enforcement of any ordinance or law, except to the extent that coverage for these increased costs is provided in E.11. Ordinance or Law under Section I – Property Coverages. Covered property losses are settled as follows:
1. Property of the following types:
a. Personal property;
b. Awnings, carpeting, household appliances, outdoor antennas and outdoor equipment, whether or not attached to buildings;
c. Structures that are not buildings; and
d. Grave markers, including mausoleums; at actual cash value at the time of loss but not more than the amount required to repair or replace.
2. Buildings covered under Coverage A or B at replacement cost without deduction for depreciation, subject to the following:
a. If, at the time of loss, the amount of insurance in this policy on the damaged building is 80% or more of the full replacement cost of the building immediately before the loss, we will pay the cost to repair or replace, without deduction for depreciation, but not more than the least of the following amounts: (1) The limit of liability under this policy that applies to the building; (2) The replacement cost of that part of the building damaged with material of like kind and quality and for like use; or (3) The necessary amount actually spent to repair or replace the damaged building. If the building is rebuilt at a new premises, the cost described in (2) above is limited to the cost which would have been incurred if the building had been built at the original premises.
b. If, at the time of loss, the amount of insurance in this policy on the damaged building is less than 80% of the full replacement cost of the building immediately before the loss, we will pay the greater of the following amounts, but not more than the limit of liability under this policy that applies to the building: (1) The actual cash value of that part of the building damaged; or (2) That proportion of the cost to repair or replace, without deduction for depreciation, that part of the building damaged, which the total amount of insurance in this policy on the damaged building bears to 80% of the replacement cost of the building.
c. To determine the amount of insurance required to equal 80% of the full replacement cost of the building immediately before the loss, do not include the value of: (1) Excavations, footings, foundations, piers, or any other structures or devices that support all or part of the building, which are below the undersurface of the lowest basement floor; (2) Those supports described in (1) above which are below the surface of the ground inside the foundation walls, if there is no basement; and (3) Underground flues, pipes, wiring and drains.
d. We will initially pay the actual cash value of the building damage, minus any applicable deductible. We will then pay the necessary amounts actually spent to repair or replace the damaged building as work is performed and expenses are incurred.
If a total loss, we will pay the replacement cost amount without deduction for depreciation.
SECTION I – PERILS INSURED AGAINST
A. Coverage A – Dwelling and Coverage B – Other Structures. We insure against direct physical loss to property described in Coverages A and
B. We do not insure, however, for loss:
1. Excluded under Section I – Exclusions;
2. Involving collapse, including any of the following conditions of property or any part of the property, whether above or below the ground: a. An abrupt falling down or caving in; b. Loss of structural integrity, including separation of parts of the property or property in danger of falling down or caving in; or c. Any spalling, crumbling, cracking, shifting bulging, racking, sagging, bowing, bending, leaning, settling, shrinkage or expansion, or any other age or maintenance related issues, as such condition relates to (1) or (2) above. except as provided in E.8. Collapse under Section I – Property Coverages; or
3. Caused by:
a. Freezing of a plumbing, heating, air conditioning or automatic fire protective sprinkler system or of a household appliance, or by discharge, leakage or overflow from within the system or appliance caused by freezing. This provision does not apply if you have used reasonable care to: (1) Maintain heat in the building; or (2) Shut off the water supply and drain all systems and appliances of water. However, if the building is protected by an automatic fire protective sprinkler system, you must use reasonable care to continue the water supply and maintain heat in the building for coverage to apply. For purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment;
b. Freezing, thawing, pressure or weight of water or ice, whether driven by wind or not, to a: (1) Fence, pavement, patio or swimming pool; (2) Footing, foundation, bulkhead, wall, or any other structure or device that supports all or part of a building, or other structure; (3) Retaining wall or bulkhead that does not support all or part of a building or other structure; or (4) Pier, wharf or dock;
c. Theft in or to a dwelling under construction, or of materials and supplies for use in the construction until the dwelling is finished and occupied;
d. Vandalism and malicious mischief, and any ensuing loss caused by any intentional and wrongful act committed in the course of the vandalism or malicious mischief, if the dwelling has been vacant for more than 30 consecutive days immediately before the loss. A dwelling being constructed is not considered vacant;
e. Accidental discharge or overflow of water or steam; unless loss to property covered under Coverage A or B results from an accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance on the "residence premises." Loss to property covered under Coverage A or B that results from an accidental discharge or overflow of water or steam from within a plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance on the “residence premises” includes the cost to tear out and repair only that part or portion of the building, or other structure covered under Coverage A or B, on the "residence premises," necessary to access the system or appliance. The cost that we will pay for the tear out and repair of the part or portion of the building or other structure covered under Coverage A or B as specified above is limited to only that part or portion of the covered building or other structure which is necessary to provide access to the part or portion of the system or appliance that caused the covered loss, whether the system or appliance or any part or portion of the system or appliance, is repairable or not. In no event will we pay for the repair or the replacement of the system or appliance that caused the covered loss. We do not cover loss: (1) To the system or appliance from which this water or steam escaped; (2) On the “residence premises” caused by accidental discharge or overflow which occurs off the “residence premises”; (3) Caused by constant or repeated seepage or leakage of water or steam or the presence or condensation of humidity, moisture or vapor, over a period of weeks, months or years, unless such seepage or leakage of water or the presence or condensation of humidity, moisture or vapor and the resulting damage is unknown to all "insureds" and is hidden within the walls or ceilings or beneath the floors or above the ceilings of a structure; (4) To a plumbing system, whether above or below the ground, caused by: (a) Age, collapse, obsolescence, wear, tear; (b) Fading, oxidization, weathering; (c) Deterioration, decay, marring, delamination, crumbling, settling, cracking; (d) Shifting, bulging, racking, sagging, bowing, bending, leaning; (e) Shrinkage, expansion, contraction, bellying, corrosion; (f) The unavailability or discontinuation of a part or component of the system; or (g) Any other age or maintenance related issue; (5) To a plumbing system, whether above or below the ground, caused by the impairment, state or condition of the system, which prohibits repair or replacement including access, necessary to connect the adjoining parts of appliances, pipes or system; or (6) Loss otherwise excluded or limited elsewhere in the policy. For purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump, irrigation system or related equipment or a roof drain, gutter, down spout or similar fixtures or equipment.
f. Any of the following: (1) Wear and tear, marring, deterioration, decay; (2) Mechanical breakdown, latent defect, inherent vice or any quality in property that causes it to damage or destroy itself; (3) Smog, rust or other corrosion; (4) Smoke from agricultural smudging or industrial operations; (5) Discharge, dispersal, seepage, migration, release or escape of pollutants unless the discharge, dispersal, seepage, migration, release or escape is itself caused by a Peril Insured Against named under Coverage C. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant, including smoke, vapor, soot, fumes, acids, alkalis, chemicals and waste. Waste includes materials to be recycled, reconditioned or reclaimed; (6) Settling, shrinking, bulging or expansion, including resultant cracking, of bulkheads, pavements, patios, footings, foundations, walls, floors, roofs or ceilings; (7) Birds, rodents or insects; (8) Nesting or infestation, or discharge or release of waste products or secretions, by any animals; or (9) Animals owned or kept by an "insured".
If any of these cause water damage not otherwise excluded or limited elsewhere in the Policy, from a plumbing, heating, air conditioning or automatic fire protective sprinkler system or household appliance, we cover loss caused by the water including the cost to tear out and repair only that part or portion of the building or other structure covered under Coverage A or B, on the “residence premises” necessary to access the system or appliance. The cost that we will pay for the tear out and repair of the part or portion of the building or other structure covered under Coverage A or B as specified above is limited to only that part or portion of the covered building or other structure which is necessary to provide access to the part or portion of the system or appliance that caused the covered loss, whether the system or appliance, or any part or portion of the system or appliance, is repairable or not. In no event will we pay for the repair or the replacement of the system or appliance that caused the covered loss. We do not cover loss to the system or appliance from which this water or steam escaped. For purposes of this provision, a plumbing system or household appliance does not include a sump, sump pump, irrigation system or related equipment or a roof drain, gutter, downspout or similar fixtures or equipment.
CALENDAR YEAR HURRICANE DEDUCTIBLE WITH SUPPLEMENTAL REPORTING REQUIREMENT – FLORIDA ALL FORMS EXCEPT HO4 SCHEDULE*
Calendar Year Hurricane Deductible Amount: *Entries left blank are shown in the Declarations.
A. Loss by Windstorm During a Hurricane With respect to Paragraphs C. and D., coverage for loss caused by the peril of windstorm during a hurricane which occurs anywhere in the state of Florida, includes loss to: 1. The inside of a building; or 2. The property contained in a building caused by: a. Rain; b. Snow; c. Sleet; d. Hail; e. Sand; or f. Dust; If the direct force of the windstorm damages the building, causing an opening in a roof or wall and the rain, snow, sleet, hail, sand or dust enters through this opening.
B. Hurricane Described 1. A hurricane means a storm system that has been declared to be a hurricane by the National Hurricane Center of the National Weather Service. 2. A hurricane occurrence: a. Begins at the time a hurricane watch or warning is issued for any part of Florida by the National Hurricane Center of the National Weather Service; and b. Ends 72 hours following the termination of the last hurricane watch or hurricane warning issued for any part of Florida by the National Hurricane Center of the National Weather Service.
C. Calendar Year Hurricane Deductible Described A hurricane deductible issued by us or another insurer in our insurer group: 1. Can be exhausted only once during each calendar year; and 2. Applies to loss to Covered Property caused by one or more hurricanes during each calendar year. The dollar amount of the calendar year hurricane deductible is shown in the Declarations. A minimum deductible of $500 applies.
D. Application of Calendar Year Hurricane Deductible 1. In the event of the first windstorm loss caused by a single hurricane occurrence during a calendar year, we will pay only that part of the total of all loss payable under Section I – Property Coverages that exceeds the calendar year hurricane deductible stated in the Schedule. 2. With respect to a windstorm loss caused by the second, and each subsequent, hurricane occurrence during the same calendar year, we will pay only that part of the total of all loss payable under Section I - Property Coverages that exceeds the greater of: a. The remaining dollar amount of the calendar year hurricane deductible; or b. The deductible that applies to fire that is in effect at the time of the loss. 3. If: a. Covered property is insured under more than one policy issued by us or another insurer in our insurer group; and b. Different hurricane deductibles apply to the same property under such policies; Then the hurricane deductible applicable under all such policies, used to determine the total of all loss payable under Section I - Property Coverages shall be the highest amount stated in any one of the policies. 4. When a renewal policy is issued by us or an insurer in our insurer group, or we issue a policy that replaces one issued by us or an insurer in our insurer group, and the renewal or replacement policy takes effect on a date other than January 1st of a calendar year, the following provisions apply: a. If the renewal or replacement policy provides a lower hurricane deductible than the prior policy, and you incurred loss from a hurricane under the prior policy in that same calendar year, the lower hurricane deductible will not take effect until January 1st of the following calendar year. b. If the renewal or replacement policy provides a lower hurricane deductible than the prior policy and you have not incurred a hurricane loss in that same calendar year, the lower hurricane deductible will take effect on the effective date of the renewal or replacement policy. c. If the renewal or replacement policy provides a higher hurricane deductible than the prior policy, the higher hurricane deductible: (1) Will take effect on the effective date of the renewal or replacement policy; and (2) Shall be used to calculate the remaining dollar amount of the hurricane deductible described in Paragraph 2. 5. We require that you promptly report any windstorm loss caused by a hurricane occurrence that is below the hurricane deductible so that we may consider the amount of such loss when adjusting claims for subsequent hurricane occurrences that occur during the calendar year.
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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.
March 20, 2025
Sent Via Portal
TYPTAP INSURANCE COMPANY
RE: Insured : GRACE GIDDENS
(hereinafter, “Insured”)
Policy # : 12-1176649-02
Claim # : 12-3026012-24
Property Address : 1205 E PARK CIR., Tampa, FL 33604
Persons most knowledgeable of facts giving rise to the Violations: Traci Lebeda, Mark Terry
Dear TYPTAP INSURANCE COMPANY:
Please find enclosed the civil remedy notice filed for the above referenced claim. This notice is given in order to perfect the right to pursue the civil remedy authorized by Florida Statute §624.155 As discussed in greater detail in the notice, the carrier has not attempted in good faith to settle the claimant’s claim when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its claimant and with due regard for its interests. The carrier has done everything possible to delay the claim and refuses to provide any sort of status of the claim. Furthermore, the carrier is required to properly investigate and adjust claims and cannot place that burden upon the insured. This was made clear by the appellate court and 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 insured…”).
The carrier was put on notice of the insured’s Hurricane Milton claim on October 13, 2024. Since the commencement of the claim the carrier has failed to timely communicate with the insured. It is obvious that the carrier is not attempting to pay for the clearly covered damages owed under the policy.
The carrier assigned Mark Terry, who is neither an engineer nor a registered contractor, to inspect the loss and write an estimate of the damages to the property. On November 9, 2024, the carrier made the unilateral determinations that the damages that were covered would total to the amount of $4,661.79 for a full roof replacement and exterior repairs after the application of the deductible and recoverable depreciation.
In reaching those conclusions, TypTap failed to adopt and implement standards for the proper investigation of claims. There was no explanation whatsoever as to how TypTap determined the valuation of the damage caused by the covered peril. Moreover, the carrier’s failure to assign a qualified and experienced engineer further violates F.S. §626.9541(1)(i)(3)(a) and F.S. §626.9541(1)(i)(3)(d).
Additionally, the carrier failed to describe how it arrived at the amount it withheld for depreciation. The policy does not explain how depreciation or actual cash value is calculated, and the carrier did not explain the facts or applicable law in relation to the payment made. This is a violation of F.S. §626.9541(1)(i)(3)(f).
The insured has been compelled to obtain an independently adjusted estimate totaling in the amount of $118,243.21 that would be needed to repair the property back to its pre-loss condition. The insured has complied with all the carrier’s requests to date. The carrier has still refused to pay the fully covered amount owed under the policy, instead electing to stand by its unilaterally determined deficient valuation of the loss. This is in violation of F.S. 624.155(1)(b)(1) and 624.155(1)(b)(3) as the carrier is clearly placing the company’s interests before the claimant’s interests and not attempting in good faith to settle claims.
It is clear that the carrier is not treating the claimant with good faith claims conduct; failing to pay a claim clearly owed; not adjusting the claim and evaluating the loss properly, promptly and fairly to provide full and prompt indemnity to the claimant; failing to implement proper standards for the adjustment and investigation of claims and placing the company’s interests before the claimant’s interests; not training, supervising or managing adjusters properly so that prompt and full payments are made; refusing to pay the full amount owed to the insured despite the fact that the damages are covered under the policy; looking for ways to delay full recovery or any recovery to the insured; and refusing to provide coverage for the claimant’s loss in a timely manner. The Carrier’s actions are in violation of Florida Statutes §§ 624.155(1)(b)(1), 624.155(1)(b)(3), 626.9541(1)(i)(3)(a), 626.9541(1)(i)(3)(b), 626.9541(1)(i)(3)(d), 627.4137(1), and Fla. Stat. §627.70131.
The actions taken by TypTap in the handling/adjustment of the insured’s claim were willful, wanton, malicious, and in reckless disregard for the rights of any insureds and occur with such frequency as to indicate a general business practice, and further are in violation of Florida Statutes §624.155 and F.S. §626.9541. Indeed, when performing a search on the Florida Department of Financial Services website’s Civil Remedy Notice of Insurer Violation page the results of searches of violations of the statutes referenced herein by the carrier returned the following results thereby indicating that the number of times they occur rise to the level of a general business practice, and warrant punitive damages:
§624.155(1)(b)(1) = 1,701
§624.155(1)(b)(3) = 1,152
§626.9541(1)(i)(3)(a) = 1,622
§626.9541(1)(i)(3)(d) = 781
§626.9541(1)(i)(3)(f) = 820
Based upon the above-referenced acts and omissions, the carrier has breached the insurance contract by failing to pay the amount due to the insured, by denying coverage which existed under the insurance contract with the insured in the instant dispute, by failing to adjust the loss with the insureds, and by failing to perform and adequate investigation. These are violations and breaches of the policy language cited above.
Therefore, to cure the defects outlined in this Civil Remedy Notice, the carrier must: 1) Pay the complete covered loss in the amount of $118,243.21 less any applicable policy deductible; and 2) Pay the statutory interest on the amount of unpaid damages from the date of loss to the date payment is finally made. A copy of this letter and filed form submitted to the FDFS has been emailed to the carrier.
The specific policy provisions the carrier violated are the loss payment provision, the loss settlement provision, and the coverage provisions. Specifically, the loss payment provision states “we will adjust all losses with you.” Yet, the carrier did not consult the homeowner in deciding who would investigate the cause or amount of damages, and what the ultimate payment should be. The other provisions are pasted on the pages following the signature block.
If you have any questions or concerns, please send all correspondence via email to Blake@klinglaw.com and Jorlyn@KlingLaw.com to ensure a prompt response. We ask that all correspondence be done via email rather than regular mail. Should you need to send something regular mail, please advise us prior to sending same via the emails above.
Sincerely,
Blake M. Wallace, Esq.
Blake M. Wallace
Attorney at Law
Enclosed: Civil Remedy Filing
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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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