Civil Remedy Filing

Civil Remedy Notice of Insurer Violations

Filing Number: 813495

Filing Accepted: 3/27/2025

Print Filing

Complainant

Last/Business Name *

108 INVESTMENT CORP.

First Name

Street Address *

233 S. FEDERAL HIGHWAY

City, State Zip *

BOCA RATON, FL 33432

Email Address *

BOB@GFEREALTY.COM

Complainant Type: *

Insured

Last/Business Name*		108 INVESTMENT CORP.		First Name
Policy # *		N9BP595243		Claim #*		N9BP595243-001-001-001

Attorney

Attorney is Applicable

Last Name*	ELAZAR First Name * SAPIR Initial
Street Address*		800 E BROWARD BLVD., STE. 510
City, State Zip*		FORT LAUDERDALE , FLORIDA 33301
Email Address *		SE@WEKLAW.COM

Violation

Insurer Type *		Authorized Insurer Unauthorized Insurer

Insurer Name
Insurer Name*		BERKSHIRE HATHAWAY DIRECT INSURANCE COMPANY
Insurer Name*
Street Address*
City, State Zip*		,
NAIC Company Code 10391

Name of individual responsible for violation (if any):* N/A
Type of Insurance * Commercial Property & Casualty

Reason for Notice *

	Claim Delay
	Unfair Trade Practice
	Unsatisfactory Settlement Offer

* 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)(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)(g)		Failing to promptly notify the insured of any additional information necessary for the processing of a claim.

* Specific policy language that is relevant to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

Loss Payment Provision Loss Settlement Provision

* Facts and circumstances giving rise to the violation.
Enter all words or phrases (one at a time) that should be used to filter.

108 Investment Corp. (the "Insured") purchased an insurance policy ("Policy") from Berkshire Hathaway Direct Insurance Company ("Berkshire"), with effective coverage on the date of the loss, on or about July 21, 2023, and policy number N9BP595243 to insure the property located at 233 S. Federal Highway, Boca Raton, FL 33432 (the "Property"). On or about July 21, 2023, the aforementioned Property suffered severe water damage, which caused ensuing damages to the Property including but not limited to the interior of the property. The Insured promptly reported their claim to Berkshire. Berkshire acknowledged receipt of the claim by generating claim number N9BP595243-001-001-001. Berkshire inspected the Property and initially issued an undisputed payment of $6,247.60. However, upon further evaluation, Berkshire generated a revised estimate valuing the damages at $18,467.65. This revised estimate indicated that the Insured was entitled to an additional payment reflecting the difference between the new estimate and the prior undisputed payment, amounting to $12,220.05. Despite this clear obligation, Berkshire has failed to issue the remaining payment to the Insured, leaving them without the necessary funds to restore the Property to its pre-loss condition. Berkshire’s actions amount to a clear failure to act in good faith by unjustifiably withholding payment of the additional amount due under the policy. This delay and refusal to issue the properly owed funds have caused unnecessary hardship for the Insured. As a direct consequence of Berkshire’s failure to fully adjust this loss in good faith and tender the full amount owed under the policy, the Insured continues to suffer considerable financial distress. Berkshire has engaged in a systematic pattern of underpaying valid claims by making initial low-ball offers, delaying payments, and failing to properly compensate its policyholders in accordance with the policy terms. As a direct consequence of Berkshire’s failure to adjust this loss in good faith and pay what it owed under the policy, the Insured continues to sustain considerable hardship. Berkshire has violated Florida Statute § 624.155(1)(b)(1) by continuously not attempting in good faith to settle this claim when it should have done so if it had acted fairly and honestly towards its Insured. Berkshire has also violated Florida Statute § 624.155(1)(b)(3) by failing to promptly settle this obviously covered claim to influence settlement in its favor. Despite being presented all of the indisputable evidence of the amount of damage sustained by this Property, it is a disgrace that the Insured has been treated in this manner by their insurance company after sustaining an uncontested covered loss, submitting to every demand of Berkshire, and making a good faith effort to resolve in an attempt to amicably come to a fair resolution. Berkshire violated Florida Statutes § 626.9541(1)(i)(2) and § 626.9541(1)(i)(3)(b) by making material misrepresentations to the Insured for the purpose, and with the intent, to settle the claim on less favorable terms than those provided and contemplated by the policy. Berkshire was informed multiple times of the discrepancies and inconsistencies of the low-ball payment issued to the Insured. While Berkshire was made aware of this information for the purpose of obtaining the money contractually owed to the Insured under its insurance policy to attempt to return the Property to its pre-loss condition in a timely fashion, Berkshire accepted that information and has used it to play the delay game with the Insured, knowing all too well the additional damage and hardship that was being placed on the Insured by its actions. Berkshire violated § 626.9541(1)(i)(3)(a) when it failed to adopt and implement standards for the proper investigations and payment of claims. Under no circumstances is there an excuse for the lack of a proper investigation in this case. Berkshire and their representatives are willfully blind and grossly underqualified to handle a loss such as the one sustained by the Insured. In addition, after being placed on notice as to the blatant underpayment of the Insured’s claim, Berkshire has yet to rectify their actions and do right by the Insured by paying the money they are contractually owed. Berkshire violated § 626.9541(1)(i)(3)(c) by failing to acknowledge and act promptly upon the communications with respect to the claim. There still has yet to be significant action taken by Berkshire to this date, despite Berkshire acknowledging their initial underpayment of the Insured’ claim. Berkshire violated § 626.9541(1)(i)(3)(g) by failing to promptly notify the Insured of any additional information necessary for processing the claim. The Insured has more than complied with each and every request and there has still been no action by Berkshire. In the event Berkshire is in need of additional information, they have failed to promptly notify the Insured in a timely manner. This pattern of behavior is perpetuated by Berkshire and their representatives undeterred by the Ethical Requirements that are imposed by law on all Adjusters. Fla. Admin. Code Ann. R. (3) explicitly states the adjustment of insurance claims engage the trust of the public, and therefore, an adjuster has a duty of fair and honest treatment of the Insured throughout the insurance claim process. Several duties and responsibilities to the Insured were violated in the handling of this claim, which are specifically listed responsibilities of an Adjuster in the Florida Administrative Code. These breached duties and responsibilities include adjusters from Berkshire approaching the investigation and settlement in a manner prejudicial to the Insured, failing to allow a fair settlement with the Insured, and acting with due diligence in achieving a proper disposition of the claim. In contrast to the legislative intent motivating the enumeration of an Adjuster’s responsibilities outlined in the Administrative Code, the Insured was not afforded the professional duties entrusted on Berkshire by the public. To date, Berkshire has failed to adequately compensate the Insured for the damage that occurred on July 21, 2023. As a direct result of Berkshire’s delay, the Insured was forced to seek the help of legal counsel to assist them. Due to the amount of time that has passed since the date of loss, this acknowledgement is evidence that Berkshire knowingly and intentionally are delaying the claims process in order to further disadvantage the Insured. The financial detriment caused to the Insured is a direct result of Berkshire’s reckless delay of the claim process. The Insured is a dutiful customer who made it a priority to pay their insurance premiums to ensure that in such an event as this devastating incident, their Property would be covered. The Insured timely filed the claim and fulfilled all of the post-loss obligations. All requested information and documentation have been turned over to Berkshire and their representatives promptly by the Insured. However, Berkshire failed at every step of the process to adequately establish or identify the basis of its gross mismanagement of the claim, failed to inform the Insured how they may remedy any deficiencies in their claim, and failed to provide them with qualified representatives to ensure the claim was initially adjusted, evaluated, and estimated properly. To deny the Insured the benefit of their bargain after they satisfied all of their obligations is morally and ethically reprehensible, and reeks of Unfair Trade Practice. Upon information and belief, the aforementioned actions complained of, among others, were made by Berkshire so often as to constitute a general business practice, evidencing a motive to enhance Berkshire’s profits, and designed to cause a detrimental effect to its policy holders. Berkshire was aware that the Insured’ damages were covered and took advantage of its Insured in an attempt to force them into an irreparably disadvantaged position, which they hope will force the Insured to settle for less coverage than they are contractually entitled to under the policy. This notice is given in order to perfect the right to pursue the civil remedy authorized by Section 624.155, Florida Statutes, should Berkshire fail to cure the violations set forth in this Civil Remedy Notice within the given cure period. Therefore, to cure the defects outlined in this Civil Remedy Notice, Berkshire must: (1) Immediately tender all insurance proceeds due and owing to the Insured that are fairly owed to the Insured under the insurance policy that would reasonably place the Insured back to a pre-loss condition; (2) Agree to reimburse the Insured’ reasonable attorneys’ fees and costs for having to become involved to resolve the claim; (3) Agree to reimburse the Insured for interest on the amount of benefits that was found to be due and owing to the Insured, relating back to the date of loss; (4) Although the Insured has made a demand herein and have previously provided Berkshire with all the necessary estimates, invoices, receipts, etc. in support thereof, the Insured are still willing to consider and to potentially accept any reasonable counter-offer made by Berkshire. Therefore, if Berkshire is not in agreement with the Insured’ reasonable demand for payment of their rightfully-owed insurance benefits being submitted at this time, the Insured hereby request that Berkshire now make a reasonable counter-offer before the expiration of the cure period.

Comments

User Id		Date Added		Comment
phernandez@hinshawlaw.com		05-23-2025		Hinshaw & Culbertson LLP, on behalf of Berkshire Hathaway Direct Insurance Company, responded to the Civil Remedy Notice in correspondence dated May 23, 2025, to 108 Investment Corp. c/o Sapir Elazar, Esq. denying it acted in bad faith.

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. 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.

DFS-10-363
Rev. 10/14/2008