HURRICANE FRANCES

• DIRECT DAMAGES - $49,100 ($6,000 deductible) Revised to            $ 147,028.35
  • Roof tiles and leakage (Estimated re-roof cost $9,500) Revised to $ 21,627.88
  • Bedroom and Interior water damage (carpet,drywall,ceiling,insulation estimated at $9,500) Revised to $ 32,625.02
  • Water pressure tank and piping (Repair cost $850)
  • Miscellaneous damage - weathervane replacement, window glass replacement, lights, cottage, barn, kennel roof (est. $2,475)Revised to $ 38,729.54
  • Pool enclosure and screened porch (Estimated replacement $12,500) Revised to $24,901.50
  • Security fencing and main gates  (Repair estimated $10,000) Revised to $28,559.61
  • Power outage - 12 days (Gas cost $600 plus equipment $975)
  • Food and perishables loss (Estimated $250)
  • Tree removal from structures , utilities or property access (Estimated $1,750)Revised to $ 4,576.33
    •   Insurance payment of $38,267.60 or 88.8% of initial claim
    •   Insurance payment of $38,267.60 or 26.0% of Revised claim

   

• POST HURRICANE DAMAGES - $222,998.22 ($1,000 deductible)
  • 1,056 sq ft 3 car garage - total loss to fire  (estimated replacement $167,000)
    •    Insurance payment of $27,400 or 12.3% of initial claim
  • Loss of equipment and other personal property - total loss to fire (Estimated $55,998.22)
    •    Insurance payment of $41,988.66 or 75% of initial claim
  • Martin County Fire Dept. Station 21 responded 09/07/2004 at 5:25 PM
  • Fire Report # 11,304

   

• INSURANCE CLAIM DATA
  • Federated National Insurance - PO Box 407193,Ft. Lauderdale, Florida 33340
  • Policy # FNH 7027078-00 initiated December 4, 2002, renewed on December 4, 2003 , amended in January 2004, renewed on 4 December 2005
  • Reported on 09/08/2004 to 866-505-2325
  • Insurance Commissioner complaint filed 09/10/2004 Case # 1-55962981
  • Claim response 09/17/2004
  • Claim status contact 800-420-7075
  • Claim Number : H0104104913
  • Claim contact for reconstruction: Alacrity Inc. 770-953-3220 (Bill Schwarz)
  • First renewal invoice received - 09/10/2004
  • Second renewal invoice received - 10/10/2004
  • Phone contact with Ft. Lauderdale Claim Office - no e-mail/internet access 10/23/2004 only printed matter via P.O. Box accepted.
  • Adjustor calls to schedule appointment 10/27/2004
  • Adjustor inspection 10/30/2004 by P&C Adjustment Services Inc. (Calvin Woodard - 561-775-8655 catclaims2@aol.com )
  • Adjustor advises delay in decision to separate Fire from Hurricane Damages 11/1/2004
  • Follow-up with State Insurance Commissioner 11/3/2004 (Jeff) 1-850-413-3101
  • Federated Insurance replied to Commissioner that it needed more investigation on Fire Claim (11/05/2004)
  • Adjustor follow-up regarding clarification and advance payment 11/06/2004
  • Adjustor follow-up to separate Hurricane Claim from Garage fire claim 11/14/2004. Seeks to use existing claim # for Fire  and make new one for Hurricane. Stated advance of $20,000 in process, report filed with Federated.
  • Follow-up with State Insurance Commissioner 11/15/2004 (Lynn) 1-800-342-2762
  • Attempt to split claim denied by Federated. No knowledge of adjustor report per Christine at 800-293-2532 at 14:17 on 11/15/2004. She denied a payment in process.
  • Adjustor follow-up at 8:30 PM 11/17/2004 to confirm sending request for advance via email with Supervisor on 11/14/2004. States adjusted value for Hurricane Damages only at approximately $38,000 after depreciation. I requested written confirmation but this required claims supervisor authorization. No confirmation sent.
  • Federated National follow-up conversation on 11/19/2004 with Joel.
  • Follow-up e-mail from Adjustor on 11/24/2004 concerning travel schedule and advance request confirmation receipt by Federated on 11/17/2004. No mention of new Claim # for Fire Damage Claim nor damages claim value settlement.
  • Payment for Policy renewal and additional Mold Coverage made on 29 November 2004 in the amount of $2,234 by check # 842
  • A follow-up at 12:30 PM on 12/03/2004 reached an operator after 40 minutes and was notified that the computers were down, to call back later. A follow-up call at 3:30 PM  was answered by Cory after 30 minutes, Cory then asked to be excused for a minute and placed the call on hold. After about 30 seconds, the call was answered by a machine stating the mailbox called was full, to dial another box number or "zero" for the Operator or "star" for the Directory. The "zero" when dialed produces a message that says "the number dialed is not correct, to re-enter the number or dial another box number or "zero" for the Operator or "star" for the Directory.". The Directory has no-one with the name Cory (or Corie, Kory etc). A specific extension is unknown since all persons who answer the phone at Federated decline to provide a last name or extension number and as previously stated the "zero" just starts the whole recording all over again.
  • A further call was made at 4:00 PM and was answered at 4:24 PM by Vicky who stated that two checks had been issued on 29 November 2004 and are usually mailed 2-3 days later insinuating that the checks should be received in the next few days. She declined to provide any further information stating the check amounts were not available in the computer file to which she had access.
  • On 4 December claim payment checks #19608 and 19609 in the respective amounts of $18,276.84 and $19,990.76 were received as settlement for Hurricane Damage claims.
  • On 11 December the new Homeowner Policy # FNH027078-01 docs were received for coverage period of 4 December 2004 - 4 December 2005
  • On 12/13/2004 P&C Adjustment advised via e-mail that a new claim had to be registered for the post Hurricane fire damages suffered.
  • On 12/15/2004 a new claim was made via phone to the appropriate New Claims Center. We were advised the Ft. Lauderdale, FL. office would call with the new claim number within 2 days. No notification was ever received.
  • On 12/23/2004 a Mr. Peter O'Donnell of Coastal Claims , an independant adjusting firm in Port St. Lucie (tel 772-465-5973, 772-460-0113, cel 772-579-5310 email propertyclaims@bellsouth.net ) called to schedule a visit to review Fire Damage Claim.
  • On 12/24/2004 the property adjustor arrived at the scheduled time. Damages were reviewed, photographed and a verbal statement was recorded. The new Claim Number was provided: H00104112091 Additional documentation was requested by the Adjusting professional and while some was provided, the balance was to be sent during the next 5 days. The process was professional, courteous and efficient and was completed in under 90 minutes.
  • On 12/30/2004 Adjustor called to clarify a few items prior to submitting claim report.
  • On 1/5/2005 Original adjustor, P&C Adjustors called to confirm report details and said it would be filing report within one week.
  • On 1/9/2005 Adjustor called to confirm nature of contents not being business related, origin of receipts etc. and refiled updated report.
  • On 1/15/2005 P&C Adjustors confirmed via email that report had been submitted on or about 1/13/2005.
  • On 1/16/2005 Adjustor confirmed via email that Revised Report had been filed on 1/14/2005
  • On 1/21/2005 Federated was called 3 times. Calls were disconnected, then forwarded to a full mailbox and finally to a mailbox where a callback message was left. No callback received.
  • On 1/24/2005 Federated was reached at Extension 1319. The adjustor, Rose Farqueson stated she did not have a file but would fax the independent adjustors to see where the report was filed.
  • A follow-up call was made to Rose Farqueson on 28 January but the call was disconnected and despite repeated attempts to reconnect, only 3 messages for a callback could be left.
  • On 31 January, Rose Farqueson called to say that the Claim File was being processed by Clorinda Gerasimchik at Ext. 1405 and to please communicate directly with Clorinda.
  • A call was placed to Clorinda at Ext. 1405 at 09:45 AM on 31 January but a recording stated that the mailbox was full and no further messages could be left.
  • A subsequent callback from Rose Farqueson confirmed that Clorinda  had reported that on 27 January she had requested a check for $27,400 be prepared in settlement of the outbuilding Fire Claim. No information was available on the personal property Claim nor was there any record of the actual check request in the system.
  • At 1:05 PM via regular mail, a Notice of Cancellation dated 27 January and effective 21 February was received by the Insured on 29 January. Reason for the cancellation was given as "Underwriting Reasons and Excessive or Unusual Liability Exposures". A period of 25 days would pass between notification and effective date.
  • A call was again placed to Clorinda Gerasimchik at extension 1405 but only an answering machine was reached. A message for callback was left at 1:18 PM on 31 January.
  • The Insurance Commissioner was contacted again on 1 February at 11:30 AM. The original file had been closed stating all payments had been made. It was ascertained that at least 45 days notice is required to cancel a policy. When a claim is in process, cancelation can only occur after the claim has been settled and at least 60 days have passed after payment of the settlement. Neither situation occurred in this case and a complaint was filed and assigned Case # 1-92386370. Virgil Walker at tel. (850) 413-5819 was assigned the case.
  • By 21 February the Company had failed to reinstate the Policy and claimed there existed evidence of commercial rental of space on the insured property for non-resident equines. The Agent for the insured wrote a letter to the Company on 8 March seeking resolution. Since the insured was uninsured, a new policy was taken from State Farm at a cost approximately 30% more than the cost of the Federated National Policy.
  • On 15 March, Federated National advised Insured the original policy had been reinstated effective 21 February. The Insured declined reinstatement and received a full refund approximately 30 days later.
  • Further calls were made on 2 and 3 February to both Clorinda and Rose with no response. On Friday, 4 February Rose Farqueson was reached at 0930 and after several attempts to find Clorinda, she determined that the check was being prepared and would be overnighted to the insured. The insured stated that he would appear personally to pick up the check.
  • At 1:30 PM the insured was advised that the check # 29615 in the amount of $27,400 (maximum coverage for "other structures")was ready and the insured went to the office of Federated to get the check. While there the insured met with Clorinda who discussed at length the claim and progress towards finalizing everything and agreed to review the claim with emphasis on whether the garage could be considered as part of the main structure given that it was connected via a covered breezeway. Clorinda stated that the adjustors had failed to mention this issue and in addition there were questions regarding personal property. The insured agreed to send evidence of the breezeway and more details concerning the personal property.
  • Insured e-mailed Clorinda the supporting data on 7 February and again on 11 February. Due to personal matters, Clorinda was absent from her office and did not read the email until 14 February. She responded by e-mail that her supervisor stated the garage was an outbuilding. She expected to complete the personal property claim by 18 February.
  • On 18 February Clorinda responded by e-mail to insured regarding the personal property claim and that a check had been prepared. She stated that this had been prepared considering that the maximum coverage was $54,800 under coverage "C". Insured informed Clorinda that coverage "C" was $127,000 and that $54,800 was coverage "D" (Loss of use).
  • On 23 and 24 February insured made several calls to Clorinda but only a message box was reached.
  • On 25 February Clorinda responded to an email inquiry that the check had been sent by UPS to the insured.
  • The check # 30117 in the amount of $41,988.66 was received by insured on 28 February via regular delivery of US Mail.
  • Almost 6 months had passed since the damages were suffered by the insured. Of a total of  $272,098.22 in damages initially claimed, the insured received $107,656.26 or approximately 40%. When the payment received is compared to the revised damage claim of $370,026.57, the paid amount drops to 29.1%.
  • Several follow-up calls to the State Commissioner's hotline resulted in no answer or call back. Finally, on 4 March at 1400 hours a service representative stated that the case did not appear nor could any update be found. A referral was provided to the Supervisor, Jerry Simpson, at 850-413-5810 but his line was occupied and no information could be obtained.
  • A review of damages and costs to repair was undertaken by a professional public adjustor on behalf of the insured at the insured's request. The resulting investigation resulted in an amended claim.
  • E-Mail Correspondence to date: 10

   

• FEMA CLAIM DATA (Disaster # 1545)
  • Claim #: 91-1285235
  • Fax report information 800-827-8112
  • Inspection visit 23/09/2004  2:10 PM
  • Living expense payment of $1,004.97 on 24/9/2004

   

• PROPERTY AFFECTED AREA MAP
• PROPERTY AERIAL PHOTOGRAPH (after repairs)

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