First-Party Property Damage Demand Letter - Florida

FIRST-PARTY PROPERTY DAMAGE DEMAND LETTER

State of Florida

[LAW FIRM LETTERHEAD]

PRIVILEGED AND CONFIDENTIAL
SETTLEMENT COMMUNICATION — FOR DISPUTE RESOLUTION PURPOSES ONLY
PROTECTED UNDER FLA. STAT. § 90.408 AND FLORIDA RULES OF CIVIL PROCEDURE

VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED (ARTICLE NO. [__________________________])
AND VIA EMAIL TO: [________________________________]

Date: [__/__/____]

[INSURANCE COMPANY FULL LEGAL NAME]
Attn: Property Claims Department
[________________________________]
[________________________________]
[City], [State] [Zip]

Attention: [________________________________], [Title/Position]
Re: FORMAL DEMAND FOR FLORIDA PROPERTY INSURANCE BENEFITS
Insured: [________________________________]
Property Address: [________________________________]
Policy Number: [________________________________]
Claim Number: [________________________________]
Date of Loss: [__/__/____]
Cause of Loss: [________________________________]
Hurricane/Named Storm: ☐ Yes — Storm Name: [________________________________] ☐ No
Response Deadline: [__/__/____] at 5:00 p.m. Eastern Time

Dear [________________________________]:

I. INTRODUCTION AND NATURE OF DEMAND

This firm represents [________________________________] ("our client"), the named insured under the above-referenced policy, in connection with a first-party property insurance claim arising from a covered loss at [________________________________], Florida. This letter constitutes a formal demand for payment of all benefits owed under the policy and applicable Florida law.

[________________________________] Insurance Company ("the Company" or "[________________________________]") accepted premiums from our client in exchange for an enforceable promise to indemnify covered property losses. That loss has occurred. The coverage is clear. The only question is whether the Company will honor its obligations promptly and completely under Florida law — or whether it will force our client to pursue all available statutory and common law remedies.

II. FLORIDA PROPERTY INSURANCE LAW — CONTROLLING FRAMEWORK

A. Prompt Payment Requirements — Fla. Stat. § 627.70131 (As Amended Effective March 1, 2023)

Florida's prompt payment statute was significantly tightened effective March 1, 2023. The current obligations are:

The 60-day clock began running on [__/__/____], the date our client submitted [his/her/their] completed proof of loss. As of the date of this letter, [____] days have elapsed. [________________________________] must pay, pay the undisputed portion, or deny in writing by [__/__/____] to avoid statutory interest penalties.

B. Replacement Cost Coverage — Fla. Stat. § 627.7011

Under Fla. Stat. § 627.7011, Florida homeowners policies must:

1. Offer replacement cost (RCV) coverage for the dwelling; if RCV was offered and accepted (as in this policy), losses must be adjusted on a replacement cost basis
2. Initially pay at least ACV (actual cash value), less the applicable deductible, upon satisfactory proof of loss
3. Pay the remaining RCV holdback as repairs are performed and expenses incurred
4. Pay full RCV without holdback or depreciation upon total loss of the dwelling
5. Offer law and ordinance coverage in 25% or 50% of dwelling limits increments — if elected by our client, such coverage applies to this loss

☐ This policy provides RCV coverage. The Company has improperly withheld depreciation / failed to pay the RCV holdback despite completion of repairs. Documentation enclosed.

☐ This is a total loss. The Company is obligated to pay full RCV immediately, without holdback.

C. Hurricane/Windstorm Coverage — Fla. Stat. §§ 627.712 and 627.7142

Florida law contains unique hurricane and windstorm coverage provisions critical to this claim:

Hurricane Deductible: Under Fla. Stat. § 627.7142, hurricane deductibles in Florida are percentage-based (not flat dollar amounts) — typically 2%, 5%, or 10% of the Coverage A dwelling limit. The hurricane deductible only applies to losses caused by a named hurricane (as declared by the National Hurricane Center). All other windstorm losses are subject to the standard all-perils deductible.

☐ This loss was caused by [Hurricane/Tropical Storm] [________________________________], declared by the NHC on [__/__/____]. The applicable hurricane deductible is [____]% of Coverage A ([____]% × $[__________] = $[__________]).

☐ This loss was caused by non-named-storm windstorm/hail. The standard deductible of $[__________] applies — NOT the hurricane deductible.

☐ The Company has improperly applied the hurricane deductible to a loss that does not qualify as a hurricane loss under Fla. Stat. § 627.7142. The correct deductible is $[__________], not $[__________].

Claim Filing Deadline: Under Fla. Stat. § 627.70132, a hurricane/windstorm claim must be filed within 1 year of the date of the hurricane or windstorm loss (this deadline was reduced from 3 years by SB 2-D, effective May 26, 2022, for claims arising on or after that date). Our client's claim was timely filed on [__/__/____] — within the applicable deadline.

Citizens Property Insurance: ☐ This policy is issued by Citizens Property Insurance Corporation, Florida's state-created insurer of last resort (est. 2002). Citizens is subject to all requirements of Fla. Stat. Chapter 627 and additional regulations under Fla. Stat. § 627.351.

D. Assignment of Benefits — Fla. Stat. § 627.7152

Effective January 1, 2023, for all residential and commercial property insurance policies issued or renewed on or after that date, post-loss Assignment of Benefits (AOB) is prohibited and void under Fla. Stat. § 627.7152(13). Any attempt to assign post-loss property benefits is unenforceable.

☐ No AOB exists on this claim. Our client retains all rights and is the proper claimant.

☐ A pre-January 1, 2023 AOB may exist — analysis enclosed. [This affects fee rights and standing.]

E. Attorney's Fees — SB 2-A (Effective March 24, 2023)

The Florida Legislature eliminated the one-way attorney fee provision under Fla. Stat. § 627.428 for suits arising under residential or commercial property insurance policies effective March 24, 2023. Attorney's fees in property insurance suits are now governed by general fee-shifting rules (Fla. Stat. § 57.105 and Fla. R. Civ. P. 1.442 offers of judgment). This change applies to policies issued or renewed on or after the effective date.

☐ This policy was issued/last renewed before March 24, 2023. Attorney fees under § 627.428 may still be available — confirm with current appellate authority.

☐ This policy was issued/last renewed on or after March 24, 2023. Fee recovery governed by Fla. Stat. § 57.105 and offer of judgment rules.

III. POLICY INFORMATION AND COVERAGE

A. Policy Details

B. Coverage Limits and Deductibles

IV. THE LOSS EVENT

A. Cause and Date of Loss

On [__/__/____], the insured property at [________________________________] sustained covered damage due to:

☐ Hurricane / Named Storm — [________________________________] made landfall on [__/__/____] as a Category [____] hurricane. Maximum sustained winds at [________________________________] were approximately [____] mph. Our client's property sustained direct wind damage, storm surge, and/or wind-driven rain intrusion.

☐ Tropical Storm / Non-Named Windstorm — Wind event with sustained speeds of [____] mph and gusts to [____] mph caused structural damage, roof damage, and interior water intrusion through wind-created openings.

☐ Water Damage (Sudden and Accidental) — [________________________________] failed suddenly and accidentally on [__/__/____], causing [________________________________].

☐ Fire — Originating in [________________________________] on [__/__/____], fire consumed/damaged [________________________________].

☐ Lightning — Direct lightning strike on [__/__/____] caused [________________________________].

☐ Hail — Hailstorm on [__/__/____] with stones sized [____] inches caused damage to [________________________________].

☐ Sinkhole Activity — Sinkhole activity confirmed by [________________________________] under Fla. Stat. § 627.706.

☐ [________________________________]

B. Description of Damage

[________________________________]
[________________________________]
[________________________________]
[________________________________]

C. Mitigation Efforts

Our client took immediate steps to mitigate further damage as required by Florida law and policy conditions:

All mitigation invoices are enclosed. Under Florida law, mitigation costs are covered losses.

D. Mold — Secondary Damage

☐ As a consequence of the insurer's delay in handling this claim, secondary mold growth has developed. Secondary mold damage caused by the insurer's delay in payment or investigation is a covered consequential damage under Florida law and the Policy.

V. CLAIM HISTORY AND INSURER'S RESPONSE

A. Claim Timeline

B. The Company's Position and Our Response

[________________________________] has taken the following position:

[________________________________]
[________________________________]

This position is unreasonable and contrary to Florida law for the following reasons:

[________________________________]
[________________________________]

C. Expert Support for Our Position

VI. DAMAGES AND CLAIMED AMOUNTS

A. Dwelling Damage — Coverage A

Note on General Contractor Overhead & Profit (O&P): Under Florida law and industry standards, general contractor O&P must be included in claims estimates where the scope and complexity of repairs requires coordinating multiple licensed subcontractors. The Company's refusal to include O&P of [____]% overhead / [____]% profit is contrary to Florida law and the holding in Trinidad v. Florida Peninsula Ins. Co. and similar Florida decisions.

B. Other Structures — Coverage B

C. Personal Property — Coverage C

A complete itemized personal property inventory is enclosed.

D. Loss of Use / Additional Living Expenses — Coverage D

Our client was / is displaced from [________________________________] from [__/__/____] to [__/__/____] ([____] months):

E. Law and Ordinance Coverage

☐ Repairs require bringing the structure into compliance with current Florida Building Code (FBC), including:

• [________________________________] — estimated compliance cost: $[__________]
• [________________________________] — estimated compliance cost: $[__________]
• Total Law & Ordinance Costs: $[__________] (within elected coverage limit of $[__________])

F. Mitigation Costs

$[________________________________] — invoices enclosed

G. Claim Summary

VII. STATUTORY INTEREST DEMAND — Fla. Stat. § 627.70131

As of [__/__/____], the 60-day prompt payment deadline has [passed / will pass on [__/__/____]]. The Company owes statutory interest at 10% per year on all unpaid amounts from the date payment was due:

Interest continues to accrue at $[__________] per day until paid. We demand all statutory interest as part of this claim.

VIII. APPRAISAL DEMAND — Fla. Stat. § 627.7015

A. Invoking Appraisal

Due to the Company's failure to agree on the amount of loss, we hereby formally invoke the appraisal process under:

1. The Policy's appraisal clause (Policy Section [____], page [____]); and
2. Fla. Stat. § 627.7015, which governs residential property insurance appraisal in Florida

Our client's chosen, disinterested appraiser is:
[________________________________]
[________________________________] (License No. [________________________________])
[________________________________], FL [________________________________]
Tel: [________________________________]

Please designate the Company's appraiser within [____] days of receipt of this letter.

B. Scope of Appraisal

The following disputed items are submitted to appraisal (amount of loss only — coverage questions are reserved):

• Amount of dwelling damage (Coverage A): specifically [________________________________]
• Amount of personal property loss (Coverage C)
• [________________________________]

C. Umpire Selection

If the two appraisers cannot agree on an umpire, either party may petition the [________________________________] County Circuit Court for appointment of an umpire under Fla. Stat. § 627.7015(5).

IX. STATUTORY VIOLATIONS AND BAD FAITH

A. Prompt Payment Violations — Fla. Stat. § 627.70131

[________________________________] has violated Florida's prompt payment statute by:

☐ Failing to acknowledge the claim within 7 days of receipt (claim submitted [__/__/____]; acknowledgment not received until [__/__/____])

☐ Failing to respond to written communications within 7 days

☐ Failing to pay, pay the undisputed portion, or issue a written denial within 60 days of claim submission — deadline was [__/__/____]; as of [__/__/____], no compliant response has been received

☐ Failing to provide a specific written explanation for the denial / underpayment as required by Fla. Stat. § 627.70131(5)

B. Unfair Insurance Trade Practices — Fla. Stat. § 626.9541

[________________________________]'s conduct constitutes unlawful unfair claims settlement practices under Fla. Stat. § 626.9541(1)(i), including:

☐ Misrepresenting pertinent facts or policy provisions relating to coverages at issue

☐ Failing to acknowledge and act reasonably promptly upon communications with respect to claims

☐ Failing to adopt and implement reasonable standards for the prompt investigation of claims

☐ Refusing to pay claims without conducting a reasonable investigation

☐ Failing to affirm or deny coverage within a reasonable time after proof of loss is submitted

☐ Not attempting in good faith to effectuate prompt, fair, and equitable settlement of a claim in which liability has become reasonably clear

☐ Compelling insureds to institute litigation to recover amounts due under an insurance policy by offering substantially less than the amounts ultimately recovered in actions brought by such insureds

☐ Attempting to settle a claim for less than the amount to which a reasonable person would have believed the insured was entitled — specifically, by [________________________________]

☐ Failing to promptly provide a reasonable explanation of the basis in the insurance policy for the denial of a claim or for the offer of a compromise settlement

C. Statutory Bad Faith — Fla. Stat. § 624.155

Notice of Intent to File Civil Remedy Notice (CRN):

If the Company fails to cure its violations within the time stated in this demand, our client will file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services — the mandatory prerequisite to bringing a statutory bad faith action under Fla. Stat. § 624.155. Once the CRN is electronically filed:

• The 60-day cure period commences on the date of electronic filing (not the date of actual receipt)
• The Company may avoid a bad faith suit by paying all damages or correcting the violation within 60 days
• If the Company fails to cure, our client may file a bad faith action seeking all damages caused by the bad faith conduct — including amounts exceeding the policy limits, consequential damages, and (where warranted) punitive damages

Post-HB 837 Bad Faith Standard: As of March 24, 2023, mere negligence is insufficient to constitute bad faith. The insurer's conduct must constitute intentional misconduct or reckless disregard for the insured's rights. The Company's conduct — specifically [________________________________] — meets this elevated standard.

X. DEMAND

A. Monetary Demand

We hereby demand payment of $[________________________________] representing all amounts owed under the policy and Florida law:

B. Non-Monetary Demands

In addition to monetary payment, we demand:

1. Written confirmation of coverage for all items listed above
2. Immediate supplement for all previously omitted line items
3. Release of all withheld depreciation upon confirmation of repairs completed
4. Written acknowledgment of appraisal demand (if appraisal is invoked above)

XI. RESPONSE DEADLINE AND CONSEQUENCES

THIS DEMAND MUST BE ACCEPTED BY 5:00 P.M. EASTERN TIME ON [__/__/____].

Consequences of Non-Compliance

If the Company fails to comply with this demand:

1. Litigation will be filed in [________________________________] County Circuit Court seeking:
   - All unpaid policy benefits
   - Statutory interest at 10% per year under Fla. Stat. § 627.70131
   - All consequential damages
   - Punitive damages (where insurer's conduct is intentional or grossly negligent)
   - Attorney's fees under Fla. Stat. § 57.105 and/or offer of judgment sanctions

2. Civil Remedy Notice will be filed electronically with the Florida Department of Financial Services, initiating the 60-day cure period for statutory bad faith under Fla. Stat. § 624.155

3. Regulatory Complaints will be filed with:
   - Florida Office of Insurance Regulation (OIR)
   200 East Gaines Street, Tallahassee, FL 32399-0326
   Tel: (850) 413-3140 | www.floir.com

• Florida Department of Financial Services (DFS), Division of Consumer Services
  200 East Gaines Street, Tallahassee, FL 32399-0322
  Tel: 1-877-693-5236 | www.myfloridacfo.com

• National Association of Insurance Commissioners (NAIC)

4. Appraisal will be invoked (if not already done so above)

XII. DOCUMENT PRESERVATION NOTICE

This letter constitutes formal written notice to immediately preserve all documents, electronically stored information (ESI), photographs, and tangible items related to this claim, including:

• Complete claims file in all versions (including reserves and reserve changes)
• All adjuster notes, diary entries, and activity logs
• All internal communications regarding this claim (including emails, texts, and internal memos)
• All photographs, videos, and drone footage of the property
• Inspection reports, engineering reports, and contractor estimates
• Claim handling guidelines, procedures manuals, and training materials applicable to this claim type
• All correspondence with the insured, this office, or any contractor
• Quality assurance and audit materials related to this claim
• Communications regarding any desk adjusting or virtual adjustment protocols used

Failure to preserve relevant evidence may result in spoliation sanctions, adverse inference instructions, and other court-ordered remedies.

XIII. CONCLUSION

Florida's property insurance system exists to make policyholders whole after covered losses. Our client dutifully paid premiums for years. When disaster struck — through [hurricane / windstorm / water / fire] — our client was entitled to rely on the protection purchased. The Company's failure to fully and promptly honor this claim has left our client displaced, financially harmed, and without the ability to restore their home.

We urge [________________________________] to carefully review the evidence enclosed, recognize the full extent of the covered loss, and tender payment of $[________________________________] on or before [__/__/____]. This is the opportunity to resolve this matter fairly, in compliance with Florida law, and without costly litigation.

Respectfully submitted,

[________________________________]

By: ___________________________________
[________________________________], Esq.
Florida Bar No. [________________________________]
[________________________________]
[City], FL [Zip]
Tel: [________________________________]
Fax: [________________________________]
Email: [________________________________]

Counsel for [________________________________]

ENCLOSURES:

☐ Policy declarations page and applicable endorsements
☐ Policy appraisal clause (cited page and section)
☐ Contractor / public adjuster estimate — $[__________] dated [__/__/____]
☐ Photographs of damage — [____] photos
☐ Drone/aerial imagery (if applicable)
☐ Engineering or forensic report — [________________________________]
☐ Personal property inventory
☐ ALE documentation (rental receipts, hotel invoices, receipts)
☐ Mitigation invoices and documentation
☐ Prior correspondence with Company
☐ Proof of timely claim submission
☐ National Hurricane Center data (if hurricane claim)
☐ NOAA / Weather Underground weather data for date of loss

CC:

• [________________________________] (Client)
• [________________________________] (Mortgagee / Loss Payee, if applicable)
  Loss Payee Clause: Loan No. [________________________________]

FLORIDA PROPERTY INSURANCE LAW QUICK REFERENCE

SOURCES AND REFERENCES

• Fla. Stat. § 627.70131 (Prompt Payment): https://www.flsenate.gov/Laws/Statutes/2024/627.70131
• Fla. Stat. § 627.7011 (Replacement Cost): https://www.flsenate.gov/Laws/Statutes/2024/627.7011
• Fla. Stat. § 627.7015 (Appraisal): https://www.leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0627/Sections/0627.7015.html
• Fla. Stat. § 627.7142 (Hurricane Deductible): https://www.flsenate.gov/laws/statutes/2024/627.7142
• Fla. Stat. § 627.7152 (AOB Prohibition): https://flsenate.gov/Session/Bill/2022D/2D/BillText/c1/HTML
• Fla. Stat. § 624.155 (Civil Remedy): https://www.flsenate.gov/laws/statutes/2024/624.155
• Fla. Stat. § 626.9541 (Unfair Practices): https://www.flsenate.gov/laws/statutes/2024/626.9541
• SB 2-A (2023) — Attorney Fee Elimination: https://www.clausen.com/florida-eliminates-one-way-attorneys-fees-statute-in-bid-to-stabilize-insurance-market/
• SB 2-D (2022) — Property Insurance Reform: https://www.chartwelllaw.com/resources/florida-insurance-reform-law-sb-2d-approved
• HB 837 (2023) — Tort Reform: https://www.hklaw.com/en/insights/publications/2023/03/florida-enacts-major-tort-reform-and-bad-faith-insurance-claim
• Florida DFS Hurricane Deductible Info: https://www.myfloridacfo.com/division/consumers/consumerprotections/floridashurricanedeductible
• Florida DFS Civil Remedy Notice Portal: https://myfloridacfo.com/division/consumers/civilremedy
• Prompt Payment Understanding (Jimerson Birr): https://www.jimersonfirm.com/blog/2023/06/understanding-floridas-prompt-pay-laws-for-property-insurance-claims/
• Florida Property Insurance Reform Summary (Marshall Dennehey): https://marshalldennehey.com/articles/property-insurance-reform-laws-passed-florida-now-what