Document for Francisco Martinez, et al Plaintiff vs. FedNat Insurance Company Defendant

• 
• 
• 
• 
• 
• 
• 
• 

						
                                
Preview
                                Case Number: CACE-20-017292 Division: 21
Filing # 115213436 E-Filed 10/19/2020 04:18:31 PM

IN THE CIRCUIT COURT OF THE
SEVENTEENTH JUDICIAL CIRCUIT, IN
AND FOR BROWARD COUNTY, FLORIDA

CASE NO.:
DIVISION:
FRANCISCO MARTINEZ; ELBA
MARTINEZ,
Plaintiffs,

v.

FEDNAT INSURANCE COMPANY, a
Florida for-profit corporation,

Defendant.
/
COMPLAINT & DEMAND FOR JURY TRIAL
COME NOW the Plaintiffs, FRANCISCO MARTINEZ and ELBA MARTINEZ
(hereinafter “Plaintiffs” or “Mr. and Mrs. Martinez”), by and through the undersigned counsel, and
hereby file this Complaint for breach of first-party insurance contract against the Defendant,

FEDNAT INSURANCE COMPANY (hereinafter “Defendant”), and in support thereof state as

follows:
THE PARTIES
Ll. At all times material hereto, Plaintiffs have been residents of Broward County,
Florida, and are otherwise sui juris.
2. At all times material hereto, Defendant was a corporation duly licensed to transact

insurance business in, and in fact transacts business in the State of Florida.
3. Defendant is in the business of insuring risks and properties located throughout the

State of Florida.

Page 1 of 7

*** FILED: BROWARD COUNTY, FL BRENDA D. FORMAN, CLERK 10/19/2020 04:18:28 PM.****JURISDICTION AND VENUE
4. This is a breach of contract action seeking damages exceeding thirty thousand
dollars ($30,000.00), exclusive of interest, costs, and attorneys’ fees and is otherwise within the
jurisdiction limits of this Court.
5. The subject property of this lawsuit is a residential dwelling located at 2973 Birch

Ter Davie, Florida 33330 (the “Property”).

6. This Court has jurisdiction over this action pursuant to Section 26.012, Florida
Statutes.
7. Venue is proper in Broward County pursuant to Section 47.011, Florida Statutes,

because Defendant insures real properties located in Broward County; this cause of action accrued
in Broward County; and the Property in this action is located in Broward County.
THE POLICY

8. Prior to September 10, 2017, Mr. and Mrs. Martinez sought and purchased
homeowner’s insurance from the Defendant to cover their Property.

9. In consideration of the premium paid to Defendant by Mr. and Mrs. Martinez,
Defendant issued its Policy No. FE-0000695314-01 (the “Policy”) to provide insurance coverage
which included, but was not limited to, coverage afforded to protect the Property against hurricane
damage. A certified copy of the Policy is attached hereto as Exhibit “A”.

10. The Policy was issued by the Defendant to Mr. and Mrs. Martinez in Broward
County, Florida and was in full force and effect during the hurricane event further described below.

11. The Policy insures against property damage to Mr. and Mrs. Martinez’s Property

and the Policy likewise insures against loss from wind and hurricane damage.

Page 2 of 7STATEMENT OF FACTS

12. On or about September 10, 2017, the Property was damaged by a storm event—
Hurricane Irma (hereinafter “the Loss”).

13. The Policy was in full force and effect at the time of the Loss.

14. The storm event—Hurricane Irma—was a covered peril under the Policy.

15. As aresult of the Loss, Mr. and Mrs. Martinez suffered damage to their Property,
which includes, but is not limited to, damage to the Property’s roof.

16. | Mr. and Mrs. Martinez promptly and timely notified Defendant of the Loss as a
result of the hurricane and made a claim pursuant to the Policy.

17. Mr. and Mrs. Martinez have otherwise performed all conditions precedent to
recovery under the Policy and under the applicable Florida Statutes.

18. As a result, the Defendant assigned claim no. HO0520313099 to the claim (the
“Claim”).

19. The Defendant assigned Deidre Williams (“Ms. Williams”) as its authorized agent
and claims adjuster to Plaintiffs’ Claim. Ms. Williams was authorized as Defendant’s
representative and agent for purposes of the Claim.

20. At all times, Mr. and Mrs. Martinez made themselves and their Property available
to and fully cooperated with the Defendant and its representative and agent to inspect and
investigate the damage caused by the storm.

21. Defendant assigned Mr. Ali Aladine (“Mr. Aladine’”) as its field adjuster and
performed an inspection of the Property on or about June 16, 2020.

22. Mr. Aladine did not get on the roof. Likewise, Mr. Aladine did not physically

examine any roof tiles or the roof underlayment material.

Page 3 of 723. On or about September 1, 2020, Mr. and Mrs. Martinez submitted to Defendant a
swom proof of loss and supporting estimate prepared by MVT Consulting.

24. | MVT Consulting concluded the estimated cost to return the Property to its pre-
hurricane condition to be $150,993.89. A copy of the MVT Consulting estimate is attached hereto
as Exhibit “B”.

25. By written correspondence dated September 26, 2020, Defendant denied the Claim
by taking the position that the roof had been damaged but the damage to the roof was caused by
age-related deterioration and faulty installation. A copy of Defendant’s denial letter is attached
hereto as Exhibit “C”.

26. Mr. and Mrs. Martinez have fulfilled all conditions precedent and contractual
obligations under the Policy prior to this lawsuit, or the same were waived.

27. Mr. and Mrs. Martinez have exhausted every reasonable means possible to resolve
this dispute with the Defendant. With no other option, Mr. and Mrs. Martinez were constrained to
hire legal counsel, incurring additional expenses, and file this lawsuit.

28. Mr. and Mrs. Martinez have suffered physical damage to their home in the amount
of $150,993.89, or in an amount to be determined at trial.

COUNT I- BREACH OF CONTRACT

29. Plaintiffs reallege and readopt Paragraphs 1-28 above as if fully set forth herein.

30. This is an action against Defendant for breach of first party insurance contract.

31. Mr. and Mrs. Martinez are the named insureds under the Policy and the Policy was
in full force and effect as to the Plaintiffs and their Property at all times material to this Complaint,

including when the Property was damaged by Hurricane Irma on or about October 7, 2016.

Page 4 of 732. Plaintiffs have performed all conditions to Defendant’s obligation to perform under
the Policy, including without limitation, the timely payment of premiums, timely notice of the
claim, mitigated the property and made temporary repairs to prevent further damages to the
property, or the Defendant has waived any and all other conditions.

33. Defendant is required to compensate the Plaintiffs for all direct physical losses from
a hurricane event under the terms of the Policy.

34.  Defendant’s denial of coverage and refusal to pay the full amount of the claim was
contrary to the terms of the Policy and/or Florida law and constitutes a breach of contract causing
further delay in restoring Plaintiffs’ property to its pre-loss condition.

35.  Asadirect and proximate result of Defendant’s breach of said contract of insurance,
Plaintiffs have been damaged by having not been compensated for the damage sustained to the
Property, which is owed under the terms of the Policy.

36. Plaintiffs have been and remain fully prepared to comply with all obligations
pursuant to the Policy.

37. Asa direct and proximate result of Defendant’s refusal to pay the Plaintiffs’ claim,
the Plaintiffs have been required to retain the services of the undersigned attorneys. Plaintiffs are
obligated to pay a reasonable fee for the undersigned attomeys’ services in bringing this action,
plus necessary costs.

38. All of the foregoing conduct constitutes a breach of contract which has resulted in
damages to the Plaintiffs.

39. In the event that Plaintiffs prevail in this action, Plaintiffs are entitled to recover

reasonable attorney’s fees and costs from Defendant pursuant to Fla. Stat. § 627.428 (2016) and §

Page 5 of 757.104 (2016). See Continental Cas. Co. v. Ryan Inc. Eastern, 974 So.2d 368, 378 (Fla. 2008);
Roberts v. Carter, 350 So.2d 78, 79 (Fla. 1977).

WHEREFORE the Plaintiffs, FRANCISCO MARTINEZ and ELBA MARTINEZ,
demand judgment against the Defendant, FEDNAT INSURANCE COMPANY, for compensatory
damages for breach of contract including, but not limited to, damage to the Property, any and all
interest allowed by law, all costs of bring this action, reasonable attorney’s fees, and such other

relief this Court deems just and proper.

DEMAND FOR JURY TRIAL
Plaintiffs demand a trial by jury of all issues triable as a matter of right by a jury.
PRAYER FOR RELIEF
WHEREFORE the Plaintiffs request that after due proceedings are had, all appropriate
penalties be assessed against the Defendant and that Plaintiffs receive any and all damages at law
to which it is justly entitled, and thus prays for judgment against the Defendant, as follows:

a. that the Court take jurisdiction over the parties and the subject matter of this action;

b. that this Court grant judgment in favor of the Plaintiffs and against the Defendant
in the amount of $150,993.80, or in an amount to be determined at trial for breach
of insurance contract;

c. award the Plaintiffs compensatory damages, including all damages to the Plaintiffs
by the Defendant;

d. that the Court retain jurisdiction over the parities and subject matter in order to
assess attomey’s fees, prejudgment interest, and costs against Defendant pursuant
to Fla. Stat. §627.428 and other relevant provisions of the law;

e. that the Court enter an Order awarding Plaintiffs attorneys’ fees, prejudgment
interest, and costs against Defendant pursuant to Fla. Stat. §627.428 and other
relevant provisions of the law;

f. Plaintiffs’ costs of suit in this action;

Plaintiffs’ consultant and expert fees;

Pre—and post-judgment interest in the maximum amount allowed by law including,

but not limited to, Fla. Stat. §627.70131(5)(a);

i. All statutory penalties;

Be

Page 6 of 7j. Any and all applicable multipliers; and
k. Any and all other relief that the Court may deem just and proper, whether such
relief sounds in law or equity.

Respectfully submitted this 19th day of October, 2020.

THE BUSH LAW GROUP, LLC

William L. Flournoy, iy

Florida Bar No.: 116163

6622 Southpoint Drive S., Ste. 190
Jacksonville, FL 32216

Ph.: (904) 552-1006

E-Mail for Electronic Service:
WLFlournoy@BushLawGroup.net
KRDupries@BushLawGroup.net
BRPadgett@BushLawGroup.net

1 Plaintiff's designation of email address pursuant to Rule 2.516, Florida Rules of Judicial Administration.

Page 7 of 7EXHIBIT “A”FED r NAT

ADJUSTING

June 5, 2020
FLORIDA CLAIMS RESOURCES
8362 PINES BLVD SUITE 311 ©
PEMBROKE PINES, FL 33024
RE: _ Insured: Francisco Martinez

Policy #: FE-0000695314-01

Claim #: HO0520313099

Date of Loss: 09/10/17
Loss Address: 2973 Birch Ter, Davie, FL, 33330

To whom it may concern:
We represent FedNat Insurance Company regarding the above-referenced claim.

Per your request, please find enclosed a certified copy of the insured’s policy in effect from
9/17/2016 to 9/17/2017.

FedNat Insurance Company herein reserves all rights and defenses it has under the terms of the
insurance contract and all applicable laws. Nothing herein constitutes, nor should it be construed
to constitute, any waiver or relinquishment of any rights or defenses FedNat Insurance Company
may have.

Please call me should you have any questions, concerns or comments related to this
correspondence or any aspect of the claim.
Sincerely,

NICHOLE MOOREHEAD

Homeowner’s Property Claims Adjuster
(800) 293-2532

Enclosure: Certified Copy of Policy FE-0000695314-01

ce:

FedNat Adjusting
14050 N.W. 14 Street, Suite 180, Sunrise, Florida 33323 m Phone: (800) 293-2532 « Fax: (954) 308-1293
www FedNat.comFED#A NAT

June 5, 2020

Re: Francisco Martinez
Policy: FE-0000695314-01
Claim No: HO0520313099

I certify that the attached is a full and complete copy of the insured’s policy in effect from
9/17/2016 through 9/17/2017.

At ik f., fa! P—€—$

C. Brian Turnau
Vice President, Claims

Witnessed and subscribed before me this / on day of 7A UY ca +20 eo.

 

FedNat Underwriters
14050 N.W. 14 Street, Suite 180 | Suntise, Florida 33323 | Phone: (800) 293-2532 | Fax: (954) 733-7071
E-inail: uwinfo@FedNat.com | PedNat.comFEDNAT INSURANCE COMPANY

PO BOX 407193

Fort Lauderdale, FL 33340

Claims: 1-800-293-2532

Service: Contact Your Agent Listed Below

Homeowner Declaration Page

FED rh NAT

INSURANCE COMPANY

 

Policy Number

Policy Period 12:01 AM Standard Time

Endorsement Declaration

Agent Code

 

FE-0000695314-01 FROM 9/17/2016

 

TO 9/17/2017 EFFECTIVE: 10/13/2016

 

 

70103

 

Endorsement Reason: mortgagee change

 

 

Named Insured and Mailing Address:

Francisco Martinez & Elba Martinez
2973 Birch Ter
Davie, FL. 33330

 

 

Location of Residence Premises:
2973 Birch Ter
Davie, FL. 33330

Agent:

8271 W Broward Blvd
Plantation, FL. 33324
Phone: (954) 472-5800

 

Esterson Insurance Group Inc

 

 

Coverage is only provided where a premium and a limit of liability is shown.

HURRICANE DEDUCTIBLE: 2% of coverage A / $20,060

ALL OTHER PERILS DEDUCTIBLE: $2,500
SINKHOLE LOSS DEDUCTIBLE: N/A

SECTION | -PROPERTY COVERAGES
A - Dwelling

B - Other Structures

C - Personal Property
D - Loss of Use

SECTION II — LIABILITY COVERAGES
£ —Personal Liability
F —Medical Payments

OPTIONAL COVERAGES
Ordinance or Law Coverage

Protective Device Credit

AOP Deductible

E-Policy (Paperless) Discount

Dwelling Age Credit/Surcharge

Claim Free Discount

Building Code Compliance Grading

Windstorm Protective Devices

Loss Assessment

Limited Fungi, Wet or Dry Rot, or Bacteria (Property)
Limited Fungi, Wet or Dry Rot, or Bacteria (Liability)

FNIC HO 9 (07 18)

LIMIT OF LIABILITY
$1,003,000

$10,030

$501,500

$200,600

$300,000
$1,000

25% of coverage A

$1,000
$10,000
$50,000

ANNUAL PREMIUM

$17935,00
INCL
INCL
INCL

$ 30.00
INCL

INCL

$- 224.50
$- 511.86
$- 10.00
$- 336.93
$- 170.34
$- 510.91
$-10993.98
INCL
INCL
INCLFEDNAT INSURANCE COMPANY y z
PO BOX 407193 F E D N AL

 

 

Fort Lauderdale, FL 33340 Homeowner Declaration Page
Claims: 1-800-293-2532 INSURANCE COMPANY
Policy Number Policy Period _12:01 AM Standard Time Endorsement Declaration Agent Code
FE-0000695314-01 FROM 9/17/2016 TO 9/17/2017 EFFECTIVE: 10/13/2016 70103

 

 

 

 

Endorsement Reason: mortgagee change

 

 

 

MANDATORY ADDITIONAL CHARGES

Policy Fee (Fully Earned) $ 25.00
Emergency Management Preparedness And Assistance Trust Fund $ 2.00
2005 Citizens Property Insurance Corporation Recoupment $ 0.00
Florida Hurricane Catastrophe Fund Emergency Assessment $ 0.00

TOTAL POLICY PREMIUM INCLUDING ASSESSMENTS AND ALL SURCHARGES $5,233.00

 

Insured Note: The portion of your premium for Hurricane Coverage is: $1,940.11

The portion of your premium for Non-Hurricane Coverage is: $3,265.89

 

 

 

 

 

 

FNIC HO 9 (07 18)FEDNAT INSURANCE COMPANY A
PO BOX 407193
Fort Lauderdale, FL 33340 F E D NAT

Homeowner Declaration Page

 

 

Claims: 1-800-293-2532 INSURANCE COMPANY
Policy Number Policy Period _12:01 AM Standard Time Endorsement Declaration Agent Code
FE-0000695314-01 FROM 9/17/2016 = TO 9/17/2017 EFFECTIVE: 10/13/2016 70103

 

 

 

 

Endorsement Reason: mortgagee change

 

 

 

Forms and Endorsements Applicable to this Policy:
FNIC HO 00 03 (04/14), FNIC HOPL (07/18), FNIC HO 40 (05/10), FNIC HO 64 (09/13)

The Total Charge for this Endorsement is: $0.00

Rating Information for your policy:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Form Type Year Built / Town / Row Construction BCEGS Territory Wind /Hail Mun Code
Verified House Type Exclusion Fire /
Police
HO-3 2005 NO Masonry 4 37 NO 999 / 999
County Occupancy Use No. of Families | Protection Class | Dist to Hydrant Dist to Fire
Station
Broward Owner Primary 1 5 1000 ft 5 mi
Protective Device Credits No Dec or Prior Seasonal Surcharge Age of Home Surcharge
Burglar Alarm Fire Alarm | Sprinkler Insurance Surcharge / Credit
YES YES tee NIA NIA NIA
Terrain Building Type Roof Cover Roof Deck Attachment Roof-Wall Connection
N/A Dwelling (B) Non-FBC Equivalent (F) Unknown (G) Unknown or Unidentifie}
Secondary Water Roof Shape Opening Protection FBC Wind Speed FBC Wind Design
Resistance (L) Unknown or
(B) No (A) Hip Undetermined 120+ mph 120 mph

 

 

 

 

 

 

 

Apremium adjustment of $_$-10993.98_is included to reflect the building’s wind loss mitigation features or construction techniques
that exist. Credits range from 0% to 90%.

A premium adjustment of $_$- 510.91 _ is included to reflect the building code grade for your area. Adjustments range from a 5%
surcharge to a 46% credit.

AUTHORIZED BY: GORDON JENNINGS AG oer

NAME SIGNATURE

 

Lienholder Name and Address
IOCWEN LOAN SERVICING, LLC.
ISAOA

PO BOX 6723

SPRINGFIELD, OH. 45501-6723

Account Number
7140179628

 

 

 

 

 

FNIC HO 9 (07 18)FEDNAT INSURANCE COMPANY y z
PO BOX 407193 F E D N AL

 

 

 

 

 

 

 

 

 

Fort Lauderdale, FL33340 Homeowner Declaration Page
Claims: 1-800-293-2532 INSURANCE COMPANY
Policy Number Policy Period _12:01 AM Standard Time Endorsement Declaration Agent Code
FE-0000695314-01 FROM 9/17/2016 TO 9/17/2017 EFFECTIVE: 10/13/2016 70103
Endorsement Reason: mortgagee change

PLEASE VISIT FEDNAT.COM TO VIEW YOUR APPLICABLE POLICY FORMS AND ENDORSEMENTS. CLICK
CUSTOMER SERVICE FOLLOWED BY INSURED LOGIN OR TYPE THIS URL INTO YOUR INTERNET BROWSER
HTTP://WWW.FEDNAT.COM/CUSTOMER-SERVICE/INSURED-LOGIN. YOU HAVE THE RIGHT TO REQUEST
AND OBTAIN WITHOUT CHARGE A PAPER OR ELECTRONIC COPY OF YOUR POLICY AND ENDORSEMENTS BY
CONTACTING YOUR AGENT OR CALLING CUSTOMER SERVICE AT (800) 293-2532.

 

FLOOD COVERAGE IS NOT PROVIDED BY THIS POLICY.

 

THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE
LOSSES, WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO
YOU.

 

LAW AND ORDINANCE COVERAGE IS AN IMPORTANT COVERAGE THAT
YOU MAY WISH TO PURCHASE. YOU MAY ALSO NEED TO CONSIDER
THE PURCHASE OF FLOOD INSURANCE FROM THE NATIONAL FLOOD
INSURANCE PROGRAM. WITHOUT THIS COVERAGE YOU MAY HAVE
UNCOVERED LOSSES. PLEASE DISCUSS THESE COVERAGES WITH YOUR
INSURANCE AGENT.

 

YOUR POLICY PROVIDES COVERAGE FOR CATASTROPHIC GROUND COVER COLLAPSE
THAT RESULTS IN THE PROPERTY BEING CONDEMNED AND UNINHABITABLE.
OTHERWISE, YOUR POLICY DOES NOT PROVIDE COVERAGE FOR SINKHOLE LOSSES. YOU
MAY PURCHASE ADDITIONAL COVERAGE FOR SINKHOLE LOSSES FOR AN ADDITIONAL
PREMIUM.

FNIC HO 9 (07 18)FEDERATED NATIONAL INSURANCE COMPANY

FNIC HO 00 03 (04 14)

HOMEOWNERS 3 — SPECIAL FORM
TABLE OF CONTENTS

GENERAL
Agreement
Definitions

SECTION I - PROPERTY COVERAGES
Coverage A — Dwelling

Coverage B — Other Structures

Coverage A — Dwelling and Coverage B — Other
Structures

Coverage C - Personal Property

Special Limits of Liability

Property Not Covered

Coverage D — Loss of Use

ADDITIONAL COVERAGES.
Debris Removal

Reasonable Repairs

Trees, Shrubs and Other Plants
Fire Department Service Charge
Property Removed

Credit Card, Fund Transfer Card, Forgery and
Counterfeit Money

Loss Assessment

Collapse

Glass or Safety Glazing Material
Landlord's Furnishings

Ordinance or Law

“Fungi,” Wet or Dry Rot, Or Bacteria

SECTION I — PERILS INSURED AGAINST
Coverage A — Dwelling and Coverage B — Other
Structures

Coverage C — Personal Property

SECTION | - EXCLUSIONS
Ordinance or Law

Earth Movement and Settlement
Water Damage

Power Failure

Neglect

War

Nuclear Hazard

Intentional Loss

Continuous or Repeated Seepage or Leakage
Criminal or Illegal Activity
Hurricane Loss

Loss Caused by Sinkhole
“Fungi,” Wet or Dry Rot, Or Bacteria

Existing Damage
Weather Conditions

FNIC HO 00 03 (04 14)

Moan aqanaagn wow

DOMONNN

o©oon

oo

1

12

13
13
14
14
14
14
14
14
14
14
14
14

15
15

15
15

Includes copyrighted material of Insurance Services Office, Inc., with its permission

Acts or Decisions 15
Faulty, Inadequate or Defective 15
SECTION I - CONDITIONS 15
Insurable Interest and Limit of Liability 15
Your Duties After Loss 15
Loss Settlement 16
Loss to a Pair or Set 17
Glass Replacement 17
Mediation Or Appraisal 17
Other Insurance 17
Suit Against Us 18
Our Option 18
Loss Payment 18
Abandonment of Property 18
Mortgage Clause 18
No Benefit to Bailee 18
Nuclear Hazard Clause 18
Recovered Property 18
Volcanic Eruption Period 18
Report Increased Values 18
Calendar Year Hurricane Deductible 19
SECTION Il - LIABILITY COVERAGES 20
Coverage E — Personal Liability 20
Coverage F —- Medical Payments to Others 20
SECTION Il - EXCLUSIONS 20
Coverage E — Personal Liability and Coverage F 20
— Medical Payments to Others
Coverage E — Personal Liability 22
Coverage F — Medical Payments to Others 23
SECTION Il - ADDITIONAL COVERAGES 23
Claim Expenses 23
First Aid Expenses 23
Damage to Property of Others 23
Loss Assessment 23
SECTION II - CONDITIONS 24
Limit of Liability 24
Severability of Insurance 25
Duties After Loss 25
Duties of an Injured Person - Coverage F — 25
Medical Payments to Others
Payment of Claim — Coverage F — Medical 25
Payments to Others
Suit Against Us 25
Bankruptcy of an Insured 25
Other Insurance — Coverage E — Personal 26
Liability

Page 1 of 29FEDERATED NATIONAL INSURANCE COMPANY FNIC HO 00 03 (04 14)

SECTIONS | AND II CONDITIONS 26
Policy Period 26
Concealment Or Fraud 26
Liberalization Clause 26
Waiver or Change of Policy Provisions 26
Cancellation 26
Nonrenewal 28
Assignment 29
Subrogation 29
Death 29
Renewal Notification 29
Notification Regarding Access 29

If your policy does not include the sinkhole coverage endorsement (FNIC HO 35), the
following applies:

“YOUR POLICY PROVIDES COVERAGE FOR A CATASTROPHIC GROUND
COVER COLLAPSE THAT RESULTS IN THE PROPERTY BEING
CONDEMNED AND UNINHABITABLE. OTHERWISE, YOUR POLICY DOES
NOT PROVIDE COVERAGE FOR SINKHOLE LOSSES. YOU MAY
PURCHASE ADDITIONAL COVERAGE FOR SINKHOLE LOSSES FOR AN
ADDITIONAL PREMIUM.”

FNIC HO 00 03 (04 14) Includes copyrighted material of Insurance Services Office, Inc., with its permission Page 2 of 29FEDERATED NATIONAL INSURANCE COMPANY

FNIC HO 00 03 (04 14)

HOMEOWNERS 3
SPECIAL FORM

 

AGREEMENT

 

We will provide the insurance described in this policy in return for the premium and compliance with all applicable

provisions of this policy.

 

DEFINITIONS

 

In this policy, "you" and "your" refer to the "named
insured” shown in the Declarations and t
a resident of the same household. "We
“our” refer to the Company providing this insurance.
In addition, certain words and phrases are defined as
follows:

1. “Bodily injury’ means bodily harm, sickness or
disease, including required care, loss of services
and death that results.

2. “Business” includes trade, profession or
occupation.

3. “Catastrophic Ground Cover Collapse” means
geological activity that results in all of the
following:

a. The abrupt collapse of the ground cover;

b. A depression in the ground cover clearly
visible to the naked eye;

¢. “Structural damage” to the “principal building”
insured under this policy, including the
foundation; and

d. The “principal building” being condemned and
ordered to be vacated by the governmental
agency authorized by law to issue such an
order for that “principal building”

4. “Fungi”
a. “Fungi” means any type or form of fungus,
including mold or mildew, and = any

mycotoxins, spores, scents or by-products
produced or released by fungi.

b. Under Section II, this does not include any
“fungi” that are on, or are contained in, a good
or product intended for consumption.

5. “Hurricane loss” means any loss resulting from
the peril of windstorm caused by a “hurricane
occurrence”.

6. “Hurricane occurrence”
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;

 
 

FNIC HO 00 03 (04 14)

Includes copyrighted material of Insurance Services Office, Inc., with its permission

b. Continues for the time period during which
the hurricane conditions exist anywhere in
Florida; and

c. 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.

“Insured” means:
a. you and residents of your household who are:
(1) Your relatives; or

(2) Other persons under the age of 21 and in
the care of any person named above.

b. A student enrolled in school full time, as
defined by the school, who was a resident of
your household before moving out to attend
school, provided the student is under the age
of:

(1) 24 and your relative; or

(2) 21 and in your care or the care of the
person described in 7.a. (1) above; or

Under Section II, “insured” also means:

¢. With respect to watercraft to which this policy
applies, any person or organization legally
responsible for watercraft which is owned by
you or any person included in 7.a. or 7.b.
above. A person or organization using or
having custody of watercraft in the course of
any “business” or without consent of the
owner is not an “insured”.

d. With respect to any vehicle to which this
policy applies:

(1) Persons while engaged in your employ or
that of any person included in 7.a. or 7.b.
above; or

(2) Other persons using the vehicle on an
“insured location” with your consent.

“Insured location” means:
a. The “residence premises’;

b. The part of other premises, other structures
and grounds used by you as a residence and:

Page 3 of 29FEDERATED NATIONAL INSURANCE COMPANY

{1) Which is shown in the Declarations; or

{2} Which is acquired by you during the
policy period for your use as a residence;

c. Any premises used by you in connection with
a premises in 8.a, and 8.b. above;

d. Any part of a premises:
{1) Not owned by an “insured”; and

{2} Where an “insured” is temporarily
residing;
e. Vacant land, other than farm land, owned by
or rented to an “insured”;

f. Land owned by or rented to an “insured” on
which a one or two family dwelling is being
built as a residence for an “insured”,

g. Individual or family cemetery plots or burial
vaults of an “insured”; or

h. Any part of a premises occasionally rented to
an “insured” for other than “business” use.

9. “Occurrence” means an_ accident, including
continuous or repeated exposure to substantially
the same general harmful conditions, which
results, during the policy period, in:

a. “Bodily injury’; or
b. "Property damage."

10. “Personal watercraft” means watercraft designed
to carry one to three people propelled by a water
Jet pump powered by an internal combustion
engine and capable of speeds greater than 25
MPH. Personal watercraft include but are not
limited to watercraft often referred to as jet skis,
wave runners and similar watercraft.

11. "Primary structural member" means a structural
element designed to provide support and stability
for the vertical or lateral loads of the overall
structure.

12. "Primary structural system" means an
assemblage of "primary structural members".

13. “Principal building” means the dwelling where you
reside on the “residence premises” shown in the
Declarations, not including other structures,
driveways, sidewalks, walkways, decks, or patios.
Patios are covered if it is an extension of the
foundation and made of the same material and/or
under the same roof line of the “principal
building”.

14. “Property damage” means physical injury to,
destruction of, or loss of use of tangible property.

15. “Residence employee” means:

a. An employee of an “insured” whose duties
are related to the maintenance or use of the
“residence premises," including household or
domestic services; or

FNIC HO 00 03 (04 14)

Includes copyrighted material of Insurance Services Office, Inc., with its permission

FNIC HO 00 03 (04 14)

b. One who performs similar duties elsewhere
not related to the “business” of an “insured.”

16. “Residence premises” means:

a. The one family dwelling, other structures, and
grounds; or

b. That part of any other building;

where you reside and which is shown as the
“residence premises” in the Declarations.

“Residence premises” also means a two family
dwelling where you reside in at least one of the
family units and which is shown as the “residence
premises” in the Declarations.

17. “Screen enclosure” means any structure, whether
or not attached to a dwelling, enclosed by
screens on more than one side, otherwise open
to the weather, and not constructed and covered
by the same or substantially the same materials
as that of the “residence premises”.

18. "Structural damage" means a "principal building”,
regardless of the date of its construction, has
experienced the following:

a. Interior floor displacement or deflection in
excess of acceptable variances as defined
in ACI 117-90 or the Florida Building Code,
which results in settlement-related damage
to the interior such that the interior building
structure or members become unfit for
service or represent a safety hazard as
defined within the Florida Building Code;

b. Foundation displacement or deflection in
excess of acceptable variances as defined
in ACI 318-95 or the Florida Building Code,
which results in settlement-related damage
to the "primary structural members" or
“primary structural systems" that prevents
those members or systems from supporting
the loads and forces they were designed to
support to the extent that stresses in those
“primary structural members" or "primary
structural systems” exceed one and one-
third the nominal strength allowed under the
Florida Building Code for new buildings of
similar structure, purpose or location;

c. Damage that results in listing, leaning or
buckling of the exterior load-bearing walls
or other vertical "primary — structural
members” to such an extent that a plumb
line passing through the center of gravity
does not fall inside the middle one-third of
the base as defined within the Florida
Building Code;

Page 4 of 29FEDERATED NATIONAL INSURANCE COMPANY

d. Damage that results in the building, or any
portion of the building containing “primary
structural members" or “primary structural
systems", being significantly likely to
imminently collapse because of the
movement or instability of the ground within
the influence zone of the supporting ground

FNIC HO 00 03 (04 14)

within the sheer plane necessary for the
purpose of supporting such building as
defined within the Florida Building Code; or

e. Damage occurring on or after October 15,
2005, that qualifies as "substantial
structural damage” as defined in the Florida
Building Code.

 

SECTION I - PROPERTY COVERAGES

 

COVERAGE A - Dwelling
1. We cover:

a. The dwelling on the “residence premises”
shown in the Declarations, including
structures attached to the dwelling; and

b. Materials and supplies located on or next to
the “residence premises” used to construct,
alter or repair the dwelling or other structures
on the “residence premises”.

2. We do not cover land, including land on which the
dwelling is located.

COVERAGE B - Other Structures

1. We cover other structures on the “residence
premises” set apart from the dwelling by clear
space. This includes structures connected to the
dwelling by only a fence, utility line, or similar
connection,

2. We do not cover:

a. Land, including land on which the other
structures are located;

b. Other structures rented or held for rental to
any person not a tenant of the dwelling,
unless used solely as a private garage;

c. Other structures from which any “business” is
conducted; or

d. Other structures used to store “business”
property. However, we do cover a structure
that contains “business” property solely
owned by an “insured” or a tenant of the
dwelling provided that “business” property
does not include gaseous or liquid fuel, other
than fuel in a permanently installed fuel tank
of a vehicle or craft parked or stored in the
structure.

3. The limit of liability for this coverage will not be
more than the limit shown in the Declarations for
Coverage B.

COVERAGE A - Dwelling and COVERAGE B -
Other Structures

Cosmetic and Aesthetic Damage to Floors —-
Special Limit of Liability. The total limit of liability
for Coverages A and B combined is $10,000 per
policy term for cosmetic and aesthetic damages to
floors.

FNIC HO 00 03 (04 14)

Includes copyrighted material of Insurance Services Office, Inc., with its permission

1. Cosmetic or aesthetic damage includes, but is not
limited to, chips, scratches, dents or any other
damage to less than 5% of the total floor surface
area and does not prevent typical use of the floor.

2. This limit includes the cost of tearing out and
teplacing any part of the building necessary to
tepair the damaged flooring.

3. This limit does not increase the Coverage A or
Coverage B limits of liability shown in the
Declarations.

4. This limit does not apply to cosmetic or aesthetic
damage to floors caused by a Peril Insured
Against as named and described under Coverage
C — Personal Property.

COVERAGE C - Personal Property

We cover personal property owned or used by an
“insured” while it is anywhere in the world. At your
request, we will cover personal property owned by:

1. Others while the property is on the part of the
“residence premises” occupied by an “insured”;
2. A guest or a “residence employee," while the

property is in any residence occupied by an
“insured.”

Our limit of liability for personal property usually
located at an “insured's" residence, other than the
“residence premises,” is 10% of the limit of liability for
Coverage C, or $1000, whichever is greater. Personal
property in a newly acquired principal residence is not
subject to this limitation for the 30 days from the time
you begin to move the property there.

Special Limits of Liability. These limits do not
increase the Coverage C limit of liability. The special
limit for each numbered category below is the total
limit for each loss for all property in that category.

1. $200 on money, bank notes, bullion, gold other
than goldware, silver other than silverware,
platinum, coins and medals.

2. $1000 on securities, accounts, deeds, evidences
of debt, letters of credit, notes other than bank
notes, manuscripts, personal records, passports,
tickets and stamps. This dollar limit applies to
these categories regardless of the medium (such
as paper or computer software) on which the
material exists.

Page 5 of 29FEDERATED NATIONAL INSURANCE COMPANY

This limit includes the cost to research, replace or
restore the information from the lost or damaged
material.

3. $1000 on watercraft, including their trailers,
furnishings, equipment and outboard engines or
motors.

4. $1000 on trailers not used with watercraft.

5. $1000 for loss by theft of jewelry, watches, furs,
precious and semi-precious stones.

6. $2000 for loss by theft of firearms.

7. $2500 for loss by theft of silverware, silver-plated
ware, goldware, gold-plated ware and
pewterware. This includes flatware, hollowware,
tea sets, trays and trophies made of or including
silver, gold or pewter.

8. $2500 on property, on the “residence premises,”
used at any time or in any manner for any
“business” purpose.

9. $250 on property, away from the “residence
premises," used at any time or in any manner for
any “business” purpose. However, this limit does
not apply to loss to adaptable electronic
apparatus as described in Special Limits 10. and
11. below.

10. $1000 for loss to electronic apparatus, while in or
upon a motor vehicle or other motorized land
conveyance, if the electronic apparatus is
equipped to be operated by power from the
electrical system of the vehicle or conveyance
while retaining its capability of being operated by
other sources of power. Electronic apparatus
includes:

a. Accessories or antennas; or
b. Tapes, wires, records, discs or other media;

for use with any electronic apparatus described in
this Item 10.

11. $1000 for loss to electronic apparatus, while not
in or upon a motor vehicle or other motorized land
conveyance, if the electronic apparatus:

a. ls equipped to be operated by power from the
electrical system of the vehicle or conveyance
while retaining its capability of being operated
by other sources of power;

b. Is away from the “residence premises”, and

Is used at any time or in any manner for any
“business” purpose.

Electronic apparatus includes:
a. Accessories and antennas; or
b. Tapes, wires, records, discs or other media;

for use with any electronic apparatus described in
this Item 11.

12. $1000 for loss to art glass windows and other
works of art such as, but not limited to fine art,

FNIC HO 00 03 (04 14)

Includes copyrighted material of Insurance Services Office, Inc., with its permission

FNIC HO 00 03 (04 14)

statuary (including but not limited to Hummels),
marbles, bronzes, porcelains, rare glass,
antiques, and bric-a-brac.

13. $2500 for personal computers and related
peripherals such as disk drives, printers, and
commercial software. We will not pay for other
software or lost data.

14. $1000 for bicycles and related equipment.

15. $2000 for loss to any individual item or set of
electronic equipment covered under this policy
caused directly or indirectly by theft or vandalism
with a maximum limit of 10% of the total
Coverage C limit of liability for all electronic
equipment covered. The electronic equipment
includes, but is not limited to:

a. Television sets.

b. Cameras and projectors.

¢. Radios, sound playing and recording devices.
d.

Video cassettes, records, video tape players,
compact disc players, DVD players, compact
discs, video discs and tapes.

e, Electronic data processing equipment and
storage media.

f. Electronic
accessories.

g. Microwave ovens (unless built-in).
h. Radio transmitting and receiving devices.
16. $5000 for loss to tools.

17. 5% of the total Coverage C limit of liability for any
one item of unscheduled personal property.

18. $2500 on trading cards and comic books,
including any of these that are part of a collection.

19. $10,000 in the aggregate for loss by theft of any
rug, carpet (except wall to wall carpet), tapestry,
wall-hanging or other similar article.

Property Not Covered. We do not cover:

1. Articles separately described and specifically
insured in this or other insurance;

Animals, birds or fish;

3. Motor vehicles or all other motorized land
conveyances. This includes:

a. Their equipment and accessories; or

b. Electronic apparatus that is designed to be
operated solely by use of the power from the
electrical system of motor vehicles or all other
motorized land conveyances, Electronic
apparatus includes:

(1) Accessories or antennas; or

(2) Tapes, wires, records, discs or other
media;

games, cartridges and

Page 6 of 29FEDERATED NATIONAL INSURANCE COMPANY

for use with any electronic apparatus
described in this Item 3.b.

The exclusion of property described in 3.a.
and 3.b. above applies only while the
property is in or upon the vehicle or
conveyance.

We do cover vehicles or conveyances not subject
to motor vehicle registration which are:

a. Used to service an “insured’s" residence; or
b. Designed for assisting the handicapped;

4, Aircraft and parts. Aircraft means any
contrivance used or designed for flight, except
model or hobby aircraft not used or designed to
carry people or cargo;

5. Property of roomers, boarders and other tenants,
except property of roomers and boarders related
to an “insured”;

6. Property in an apartment regularly rented or held
for rental to others by an “insured,” except as
provided in Additional Coverages 10.;

7. Property rented or held for rental to others off the
“residence premises”;

8. “Business” data, including such data stored in:

a. Books of account, drawings or other paper
records; or

b. Electronic data processing tapes, wires,
records, discs or other software media;

However, we do cover the cost of blank recording
or storage media, and of pre-recorded computer
programs available on the retail market; or

9, Credit cards or fund transfer cards except as
provided in Additional Coverages 6.

COVERAGE D - Loss Of Use

We will pay 80% of the additional expenses you incur
for a “hurricane loss”, and 100% of the additional
expenses you incur for other losses, but no more than
the Coverage D limit of liability shown in the
Declarations for the following:

1. Additional Living Expenses, meaning any

necessary increase in living expenses incurred by
you so that your household can maintain its
normal standard of living when a loss covered
under this Section makes that part of the
“residence premises” where you reside not fit to
live in.
Payment will be for the shortest time required to
repair or replace the damage or, if you
permanently relocate, the shortest time required
for your household to settle elsewhere.

2. If a loss covered under this Section makes that
part of the “residence premises” rented to others

or held for rental by you not fit to live in, we cover
the:

FNIC HO 00 03 (04 14)

Includes copyrighted material of Insurance Services Office, Inc., with its permission

FNIC HO 00 03 (04 14)

Fair Rental Value, meaning the fair rental value
of that part of the “residence premises” rented to
others or held for rental by you less any expenses
that do not continue while the premises is not fit
to live in.

Payment will be for the shortest time required to
repair or replace that part of the premises rented
or held for rental.

3. If a civil authority prohibits you from use of the
“residence premises’ as a result of direct damage
to neighboring premises by a Peril Insured
Against in this policy, we cover the Additional
Living Expense and Fair Rental Value loss as
provided under 1. and 2. above for no more than
two weeks.

The periods of time under 1., 2. and 3. above are not
limited by expiration of this policy.

We do not cover loss or expense due to cancellation
of a lease or agreement.

ADDITIONAL COVERAGES

1. Debris Removal. We will pay your reasonable
expense for the removal of:

a. Debris of covered property if a Peril Insured
Against that applies to the damaged property
causes the loss; or

b. Ash, dust or particles from a volcanic eruption
that has caused direct loss to a building or
property contained in a building.

This expense is included in the limit of liability that
applies to the damaged property. If the amount to
be paid for the actual damage to the property plus
the debris removal expense is more than the limit
of liability for the damaged property, an additional
5% of that limit of liability is available for debris
removal expense.

We will also pay your reasonable expense, up to
$500, for the removal from the “residence

premises” of:
a. Your tree(s) felled by the peril of Windstorm
or Hail;

b. Your tree(s) felled by the peril of Weight of
Ice, Snow or Sleet; or

c. A neighbor's tree(s) felled by a Peril Insured
Against under Coverage C;

provided the tree(s) damages a covered
structure. The $500 limit is the most we will pay in
any one loss regardless of the number of fallen
trees.

2, Reasonable Repairs. In the event that covered
property is damaged by an applicable Peril
Insured Against, we will pay the reasonable cost
incurred by you for necessary measures taken
solely to protect against further damage. If the
measures taken involve repair to other damaged
property, we will pay for those measures only if

Page 7 of 29FEDERATED NATIONAL INSURANCE COMPANY

that property is covered under this policy and the
damage to that property is caused by an
applicable Peril Insured Against.

This coverage:

a. Does not increase the limit of liability that
applies to the covered property;

b. Does not relieve you of your duties, in case of
a loss to covered property, as set forth in
SECTION | —- CONDITION 2.d.

3. Trees, Shrubs and Other Plants. We cover
trees, shrubs, plants or lawns, on the “residence
premises,” for loss caused by the following Perils
Insured Against: Fire or lightning, Explosion, Riot
or civil commotion, Aircraft, Vehicles not owned or
operated by a resident of the “residence
premises," Vandalism or malicious mischief or
Theft.

We will pay up to 5% of the limit of liability that
applies to the dwelling for all trees, shrubs, plants
or lawns. No more than $500 of this limit will be
available for any one tree, shrub or plant. We do.
not cover property grown for “business” purposes.

This coverage is additional insurance.

4. Fire Department Service Charge. We will pay
up to $500 for your liability assumed by contract
or agreement for fire department charges incurred
when the fire department is called to save or
protect covered property from a Peril Insured
Against. We do not cover fire department service
charges if the property is located within the limits
of the city, municipality or protection district
furnishing the fire department response.

This coverage is additional insurance. No
deductible applies to this coverage.

5. Property Removed. We insure covered property
against direct loss from any cause while being
removed from a premises endangered by a Peril
Insured Against and for no more than 30 days
while removed. This coverage does not change
the limit of liability that applies to the property
being removed.

6. Credit Card, Fund Transfer Card, Forgery and
Counterfeit Money.

We will pay up to $500 for:

a. The legal obligation of an “insured” to pay
because of the theft or unauthorized use of
credit cards issued to or registered in an
“insured's" name;

b. Loss resulting from theft or unauthorized use
of a fund transfer card used for deposit,
withdrawal or transfer of funds, issued to or
registered in an “insured’s" name;

c. Loss to an ‘insured’ caused by forgery or
alteration of any check or negotiable
instrument; and

FNIC HO 00 03 (04 14)

Includes copyrighted material of Insurance Services Office, Inc., with its permission

FNIC HO 00 03 (04 14)

d. Loss to an “insured” through acceptance in
good faith of counterfeit United States or
Canadian paper currency.

We do not cover use of a credit card or fund
transfer card:

a, By a resident of your household;

b. By a person who has been entrusted with
either type of card; or

c. If an “insured” has not complied with all terms.
and conditions under which the cards are
issued.

All loss resulting from a series of acts committed
by any one person or in which any one person is
concerned or implicated is considered to be one
loss,

We do not cover loss arising out of “business” use
or dishonesty of an “insured.”

This coverage is additional insurance. No
deductible applies to this coverage.

Defense:

a. We may investigate and settle any claim or
suit that we decide is appropriate. Our duty to
defend a claim or suit ends when the amount
we pay for the loss equals our limit of liability.

b. If a suit is brought against an “insured” for
liability under the Credit Card or Fund
Transfer Card coverage, we will provide a
defense at our expense by counsel of our
choice.

c. We have the option to defend at our expense
an “insured” or an "“insured's" bank against
any suit for the enforcement of payment
under the Forgery coverage.

Loss Assessment. We will pay up to $1000 for
your share of loss assessment charged during the
policy period against you by a corporation or
association of property owners, when the
assessment is made as a result of direct loss to
the property, owned by all members collectively,
caused by a Peril Insured Against under
COVERAGE A - DWELLING, other than
earthquake or land shock waves or tremors
before, during or after a volcanic eruption.

This coverage applies only to loss assessments
charged against you as owner or tenant of the
“residence premises.”

We do not cover loss assessments charged
against you or a corporation or association of
property owners by any governmental body.

The limit of $1000 is the most we will pay with
respect to any one loss, regardless of the number
of assessments.

Page 8 of 29FEDERATED NATIONAL INSURANCE COMPANY

Condition 1. Policy Period, under SECTIONS |
AND || CONDITIONS, does not apply to this
coverage.

8. Collapse
a. With respect to this Additional Coverage:

{1} Collapse means an abrupt falling down or
caving in of a building or any part of a
building with the result that the building,
or part of the building, cannot be
occupied for its intended purpose.

{2) A building or any part of a building that is
in danger of falling down or caving in is
not considered to be in a state of
collapse.

{3) A part of a building that is standing is not
considered to be in a state of collapse
even if it has separated from another part
of the building.

{4) A building that is standing or any part of a
building that is standing is not considered
to be in a state of collapse even if it
shows evidence of cracking, bulging,
sagging, bending, leaning, — settling,
shrinkage or expansion.

b. We insure for direct physical loss to covered
property involving collapse of a building or
any part of a building if the collapse was
caused by one or more of the following:

{1) Perils Insured Against in Coverage C —
Personal Property. These perils apply to
covered buildings and personal property
for loss insured by this additional
coverage;

{2) Decay that is hidden from view, unless
the presence of such decay is known to
you prior to collapse;

{3) Insect or vermin damage that is hidden
from view, unless the presence of such
damage is known to you prior to collapse;

{4) Weight of contents, equipment, animals
or people;

{5) Weight of rain which collects on a roof, or

{6) Use of defective material or methods in
construction, remodeling or renovation if
the collapse occurs during the course of
the construction, remodeling or
renovation.

Loss to an awning, patio, pavement,
swimming pool, underground pipe, flue, drain,
cesspool, septic tank, foundation, retaining
wall, bulkhead, pier, wharf or dock is not
included under Items (2), (3), (4), (5), and (6)
unless the loss is a direct result of the
collapse of a building or any part of a building.

FNIC HO 00 03 (04 14)

9.

10.

Includes copy