Civil Remedy Notice of Insurer Violations
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Filing Number:     813860
Filing Accepted:  3/31/2025
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Complainant
Last/Business Name *  
CONTRERAS   First Name   MARLENE AND PAUL
Street Address * 928 TORREY PINE DR
City, State Zip * WINTER SPRINGS, FL 32708
Email Address * PAUL.CONTRERAS@PCTAPPS.COM
Complainant Type: * Insured
Insured
Last/Business Name*   CONTRERAS   First Name   MARLENE AND PAUL
Policy # * 759137 Claim #* 013651
Attorney
Attorney is Applicable
Last Name* ALTMAN First Name * ALEXIS Initial
Street Address* 925 SOUTH FEDERAL HIGHWAY, 7TH FLOOR
City, State Zip* BOCA RATON , FL 33432
Email Address * AALTMAN@KPATTORNEY.COM
Violation
Insurer Type *   Authorized Insurer Unauthorized Insurer
 
Insurer Name*   VYRD INSURANCE COMPANY
NAIC Company Code 17153
 
Name of individual responsible for violation (if any):* KRISTY WELCH
Type of Insurance * Residential Property & Casualty   
Reason for Notice *
Unfair Trade Practice
Unsatisfactory Settlement Offer
Claim Delay
Claim Denial
* 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.
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.
* 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 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.

MARLENE CONTRERAS AND PAUL CONTRERAS (“insured”) purchased an all-risk policy of insurance with Vyrd Insurance Company (“carrier”) to cover their home. The Insured made a claim after suffering damages from Hurricane Milton. The loss was a direct result of a covered peril under the all-risk policy. Although it is clear that the damages are covered, the carrier has not attempted in good faith to settle the insured’s claim 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 their interests. 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 insureds…”). The insureds put the carrier immediately on notice of the damages to their home after Hurricane Milton, which barreled through Florida. An engineer was sent out. This is a practice of Vyrd Insurance to send out engineers who have been paid millions of dollars to write up reports misrepresenting the cause of loss as falling under exclusions under the policy. Specifically, the denial letter attributed the damages to the following exclusions, “The cracks/gaps observed in the seals/sealants of various windows of the house were not caused by forces associated with Hurricane Milton on or about October 10, 2024, but rather were pre-existing and caused by age, prolonged exposure to the elements, and a lack of maintenance. • The cracks observed in the wall masonry/stucco at the corners of some windows of the residence were not caused by forces associated with Hurricane Milton on or about October 10, 2024, but rather were pre-existing and caused by shrinkage and stress concentrations. • The roof was observed to be in fair condition and the features/deficiencies observed, including stained tiles, cracked tiles, cracks/gaps in the grout at ridge tiles, rake tiles and roof vents, cracks/gaps in the seals/sealants at roof flashing areas, previous tile repairs, and previous grout repairs, were not caused by forces associated with Hurricane Milton on or about October 10, 2024, but rather were caused by prolonged exposure to the elements, thermal expansion/contraction, foot traffic, lack of maintenance, and mechanical means. • The slipped/slid tiles observed on the roof were not caused by forces associated with Hurricane Milton on or about October 10, 2024, but rather were caused by gravitational forces acting upon the loose tiles. The interior of the residence was viewed, and the conditions observed, including the stains on the ceiling drywall of some rooms, including the upstairs hallway, were not caused by forces associated with Hurricane Milton on or about October 10, 2024, but rather were caused by the aging process of the roofing system, and lack of maintenance of the roofing system, and predated the date of loss by months if not years. The stains were not the result of any single, sudden or accidental water event as reported. • The stains on the wall drywall, window frames and windowsills at the windows of some rooms of the residence, including the downstairs living/family room, were not caused by forces associated with Hurricane Milton on or about October 10, 2024, but rather were caused by seepage of rainwater through prior-deficient seals/sealant at the adjacent windows, and predated the date of loss by months if not years. The stains were not the result of any single, sudden or accidental water event as reported • The stains/deterioration on the underside of the roof sheathing/framing at various locations, including at the roof pipe penetration above the upstairs hallway, were not caused by forces associated with Hurricane Milton on or about October 10, 2024, but rather were caused by prolonged moisture intrusion, that predated the date of loss by months if not years, the aging process of the roofing system, and lack of maintenance of the roofing system. The stains were not the result of any single, sudden or accidental water event.” It is clear that the engineer was paid to provide an opinion that any and all damages seen were not a result of the Hurricane. Pursuant to Florida Statute §624.155(1)(b)(1), Vyrd Insurance Company has failed to settle the claim in good faith when it could and should have done so. The damage to the Insured’s property was clearly caused by a covered peril under the Policy, but Vyrd has intentionally and wrongfully denied the roof and interior damage, and callously delayed the claim process. Vyrd has not shown a good faith intention to pay what was owed but rather has underpaid the claim for financial gain and profit. Pursuant to Florida Statute §626.9541(1)(i)(3)(a), Vyrd has a duty to adopt and implement standards for the proper investigation of claims. The field adjuster sent out on behalf of Florida Peninsula displayed a lack of knowledge, improper training, and/or intent to misrepresent damages. Florida law mandates that insurers and adjusters do not mislead the Insured. Florida Insurance companies that fail to follow these Florida laws and regulations, designed to protect consumers, do not only breach their duties under the policy of insurance but do so in bad faith. In violation of Florida Statute §626.9541(1)(i)(3)(b), Vyrd intentionally misrepresented the available coverage under the policy. Florida Peninsula intentionally misrepresented the cause of the damages. Furthermore, the Insured believes Vyrd repeatedly and as a standard business practice engages in this behavior to deprive its Insured of their rightful insurance proceeds when they experience a covered loss. Insured contends Vyrd has implemented a claims program and business practices that are tailored to increase its profits at the expense of benefits that are owed to its customers and that other Insured have been refused insurance proceeds due and owing under the policy in the same or similar circumstances, and some have been provided inadequate insurance monies under the same or similar facts or circumstances. All the aforementioned are part of what appears to be an ongoing pattern and practice of behavior of the carrier that it demonstrates a wanton and reckless regard for the insureds’ rights and a pattern and practice of bad faith claims practices to its insureds across the state of Florida. This notice is provided in order to perfect a right to pursue the civil remedy authorized by Florida Statute §624.155. Therefore, to cure the defects outlined in this Civil Remedy Notice, the carrier must: 1) Pay all amounts due and owing to the insured in the amount of $206,618.79 for indemnity benefits, minus any applicable deductible or prior payments; and 2) Pay the statutory interest on the amount of unpaid damages from the date of loss to the date payment is finally made. Should you have any questions upon receipt please contact the undersigned at 561-892-9988. Sincerely, Alexis Altman
Comments
User Id Date Added Comment
cmaukonen@chartwelllaw.com 05-27-2025 May 27, 2025 VIA E-MAIL: aaltman@kpattorney.com Marlene and Paul Contreras c/o Alexis Altman, Esq. Kanner & Pintaluga 925 Federal Hwy Boca Raton, FL 33432 Re: Insurer: Vyrd Insurance Company Insureds: Marlene and Paul Contreras Complainants: Marlene and Paul Contreras DFS Filing Number: 813860 Filing Accepted Date: March 31, 2025 Policy Number: 759137 Claim Number: 13651 Address: 928 Torrey Pine Dr., Winter Springs, FL 32708 To Whom It May Concern: This firm represents VYRD Insurance Company (hereafter “VYRD”) in connection with a claim submitted by Marlene and Paul Contreras (hereinafter “the Complainants”), following a reported hurricane Milton loss occurring on or about October 9, 2024. This correspondence shall serve as a formal response by VYRD to the Civil Remedy Notice of Insurer Violation (hereinafter “CRN”), filing number 813860, recently submitted on behalf of the Complainants and associated with Policy number 759137, and claim number 13651. As a preliminary matter, VYRD denies each and every allegation brought forth in the CRN and denies any wrongdoing in the handling of this claim. Notwithstanding and preserving said denials, all parties to this dispute have amicably resolved their differences, and all purported violations alleged in the subject CRN have been cured. Furthermore, the Complainants have agreed to release VYRD of any liability relating to this claim. Should any party involved, including the Florida Department of Financial Services, have any questions or further enquiry with respect to this matter, please contact the undersigned. Thank you for your attention to this matter. Sincerely, CHARTWELL LAW /s/ Chelsea Maukonen, Esq. Chelsea Maukonen, Esq. cc: Florida Department of Financial Services
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