Preview
Filing # 68451925 E-Filed 02/26/2018 01:21:35 PM
IN THE CIRCUIT COURT OF THE 17™
JUDICIAL CIRCUIT IN AND FOR
BROWARD COUNTY, FLORIDA
CIRCUIT CIVIL DIVISION
CASE NO.: CACE 18-001121 (Div. 05)
JACQUELINE KOHN,
Plaintiffs,
VS,
STATE FARM FLORIDA INSURANCE
COMPANY,
Defendant.
STATE FARM'S ANSWER TO THE COMPLAINT
Defendant, STATE FARM FLORIDA INSURANCE COMPANY, hereby answers the
Complaint filed in this action by Plaintiff JACQUELINE KOHN as follows:
1 Admitted.
2 Admitted.
3 Admitted in part, and denied in part. Title to the property is held by "Jacqueline
Kohn, Trustee of the Jacqueline Declaration of Trust Dated May 5, 2012" pursuant to Warranty
Deed executed May 4, 2012, BK 48752, PAGE 869, Broward County Records.
4 Admitted that a true copy of the described policy is attached hereto as Exhibit 1.
However, the "Checklist of Coverage" included as part of Exhibit 1 (pages 42-44) is not part of
the policy, it does not modify the terms of the insurance contract, and it does not create a cause
of action, nor is it admissible in any civil action. See, §627.4143(6), Fla.Stat.
5 Admitted.
*** FILED: BROWARD COUNTY. FL BRENDA D. FORMAN. CLERK 2/26/2018 1:21:35 PM.****
CASE NO.: CACE 18-001121 (Div. 05)
Answer to the Complaint
Page 2
6 Defendant is without knowledge sufficient to admit or deny when damage was
noticed by Plaintiff; therefore, denied.
7 Admitted that some covered loss caused by water leaking from a waste arm inside
the kitchen wall of Plaintiff's home occurred, and the covered loss was paid by STATE FARM;
otherwise, denied.
8 Admitted.
9 Denied.
10. Denied. Plaintiff tore out the waste plumbing system (cast iron pipes) beneath her
home before notifying STATE FARM of any loss associated with the plumbing. The policy
requires that Plaintiff give immediate notice of any loss that may be covered by the policy; and
the policy requires that Plaintiff exhibit the damage to STATEF FARM upon demand. Plaintiff
claimed that a condition of the waste plumbing system beneath the home caused the escape of
water that damaged her home, but by failing to give immediate notice and by failing to allow
STATE FARM to inspect and test the drain lines before they were torn out, STATE FARM was
prejudiced in its ability to correlate a condition of the waste plumbing system with the reported
interior water damage. However, STATE FARM was able to determine that a waste arm (a
horizontal section of the drain system serving the kitchen sink and located within the wall of the
home behind the sink cabinets, which had not been torn out prior to STATE FARM's inspection)
was leaking. STATE FARM paid to access the waste arm pursuant to the policy.
ll. Prior responses are adopted.
12. Admitted, and it did so.
13. Denied.
14. Denied.
CASE NO.: CACE 18-001121 (Div. 05)
Answer to the Complaint
Page 3
15 Denied.
16. Denied.
17 Denied.
18 Denied.
FIRST AFFIRMATIVE DEFENSE
The following is pled in the affirmative solely to clarify Defendant's position. Coverage
under the policy for "tear out" is found under Section I — Additional Coverages. Plaintiff has the
sole burden to prove that all conditions of the coverage for tear out have occurred. By pleading
the following in the affirmative, Defendant does not waive the Plaintiff's burden of proof, nor
does Defendant undertake to prove the following:
Upon information and belief, Plaintiff seeks coverage for tear out in order to facilitate the
replacement of the waste plumbing system (cast iron pipes) beneath her home. The policy
provides limited coverage for tear out under Section I — Additional Coverages, 13. Tear Out.
That coverage is reproduced here:
Tear Out. If a Loss Insured to Coverage A property is caused by water or steam
escaping from a system or appliance, we will also pay the reasonable cost you
incur to tear out and replace only that particular part of the building or
condominium unit owned by you necessary to gain access to the specific point of
that system or appliance from which the water or steam escaped. We will not
cover the cost of repairing or replacing the system or appliance itself. This
coverage does not increase the limit applying to Coverage A property.
See, Exhibit 1, at 27. See Also, Exhibit 1, at 28, deleting reference to tear-out coverage under
Section I — Losses Not Insured, 1-f.
The water that the caused a Loss Insured to the Plaintiff's building did not escape from
any specific point of the waste plumbing system (cast iron pipes) beneath Plaintiff's home that
CASE NO.: CACE 18-001121 (Div. 05)
Answer to the Complaint
Page 4
necessarily must be accessed by tearing out any part of the Plaintiffs building. The water the
leaked into Plaintiff's home came from a broken waste arm located in the wall of her kitchen
behind the cabinets, which STATE FARM paid to access under Section I — Additional
Coverages, 13., Tear Out.
No payment is owed relating to the replacement of the waste plumbing system (cast iron
pipes) beneath Plaintiff's home.
SECOND AFFIRMATIVE DEFENSE
If the Plaintiff waste plumbing system beneath the home leaked into the home, then this
affirmative defense shall apply. Plaintiff tore out the waste plumbing system beneath her home
before notifying STATE FARM of any loss associated with that part of the plumbing. The
policy requires that Plaintiff give immediate notice of any loss that may be covered by the
policy; and the policy requires that Plaintiff exhibit the damage to STATEF FARM upon
demand. Plaintiff and/or her representatives claimed that a condition of the waste_plumbing
system beneath the home caused the escape of water that damaged her home, but by failing to
give immediate notice and by failing to allow STATE FARM to inspect and test the waste
plumbing system beneath the home before it was torn out, STATE FARM was prejudiced in its
ability to correlate a condition of the waste plumbing system beneath the home with the reported
interior water damage. However, STATE FARM was able to determine that a waste arm (a
horizontal section of the drain system serving the kitchen sink and located within the wall of the
home behind the sink cabinets, which had not been torn out prior to STATE FARM's inspection)
was leaking. STATE FARM paid to access the waste arm pursuant to the policy. As a result of
Plaintiffs failure to comply with the policy at Section I — Conditions, 2. Your Duties After Loss
CASE NO.: CACE 18-001121 (Div. 05)
Answer to the Complaint
Page 5
(Exhibit 1, at 60-61), prejudice resulted to STATE FARM, and there is no coverage for that part
of the claim seeking coverage to tear out the waste plumbing system beneath the home.
THIRD AFFIRMATIVE DEFENSE
The loss to the waste plumbing system itself, whether a waste arm located in the wall or
the cast iron pipes located beneath the home, consists or was caused by wear, tear, deterioration,
rust/corrosion, which are perils excluded from coverage by the policy under Section I — Losses
Not Insured, 1.g. and h.. See, Exhibit 1, at 56-57. This defense is not intended to apply to the
claim for water that is alleged to have escaped from the waste plumbing system and caused
damage to Plaintiff's home.
JURY TRIAL IS DEMANDED OF ALL MATTERS SO TRIABLE
CERTIFICATE OF SERVICE
WE HEREBY CERTIFY that a true and correct copy of foregoing was served through
the Florida Courts E-filing Portal on this 26th day of February, 2018, upon Donna DeVaney
Stockham, Esq., Attorney for Plaintiffs, at the following address(es):
dstockham@stockhamlawgroup.com
meassida@stockhamlawgroup.com
agonzalez-abreu@stockhamlawgroup.com
CHIMPOULIS, HUNTER & LYNN, P.A.
Attorneys for Defendant STATE FARM
150 S. Pine Island Road
Suite 510
Plantation, FL 33324
Phone: (954) 463-0033
s/ Brian Charlton Hunter
BY:
BRIAN CHARLTON HUNTER, ESQ.
Florida Bar No. 981206
bhunter(@chl-law.com
S~ Statefarm
Certified Policy Record
I, the undersigned, do hereby confirm that | am custodian of the records pertaining to the issuance of
policies by State Farm Florida Insurance Company.
| certify that the attached documents represent a true and accurate record of the terms and conditions
of Policy Number EE including any endorsements, if applicable, for the policy term(s)
11/24/2016-11/24/2017 and insuring KOHN, JACQUELINE based on available records.
The policy was in effect on the loss date of 10/29/2017.
JENNIFER WILLIAMSON
Underwriter
Date: 01/11/2018
1004516 2000 143551 200 03-21-2012
EXHIBIT 1
(page 1 of 73)
State Farm Florida Insurance Company RENEWAL CERTIFICATE SUPPLEMENTAL PAGE
7401 G ess Gardens Blvd, POLICY NUMBER, a
itinter Haven, FL 33888-0007 Homeowners Poli
INOV 24 2016 to NOV 24 2017
AT2 HAS. 2281-FB1B HW F
201007 000:
KOHN, JACQUELINE
621 NW 65TH AVE
PLANTATION FL 33317-1703
ike
We ete Peale
bs
Florida law requires this notice:
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 a Ov
D_TO CONSIDER THE_PURCHA E OF
FLOOD INSURAN ONAL FLOOD
INSURANCE PROGRAM. WITHOUT Tig. COVERAGE
AV UNCOVERED LOSS: AS
BIscuss: THESE COVERAGES WITH Your INSURANCE
YOUR POLICY PROVIDES COVERAGE FOR
CAL APTRORHIG G O LLAPSE THAT
LTS IN THE PROPERTY BEING CONDEMNED AND
ONINHABITABLE. OTHERWISE, YOUR POLICY DOES NOT
PROVIDE, SaVERS FOr INK KHOLE vEQSSES. vou
E AD AL
SINKHOLE 1 ISSses FOR AN ADDITIONAL | PREMIUM. ©
4018 1 Agent NICK TURMES JR Please keep this part for your record.
Namo KanrKZer Telephone (954) 587-1448 Rea EP 26 2016
8 Prepared
EXHIBIT 1
(page 2 of 73)
State Farm Florida Insurance Company Florida Assessment Page
7401 Cypress Gardens Blvd, POLICY NUMBER
Winter Javen, FL 33888-0007 Homeowners Poli
INOV 24 2016 to NOV 24 2017
Full Entity Name Amount
Florida Emergency Management Preparedness, and Assistance Trust Fund Assessment $2.00
Total Florida Assessments
$ 2.00
§
302
EXHIBIT 1
(page 3 of 73)
State Farm Florida Insurance Company RENEWAL CERTIFICATE
7401 Cypress Gardens Blvd, POLICY NUMBER. as
Winter Javen, FL 33888-0007 Homeowners Poli
INOV 24 2016 to NOV 24 2017
HAS. 2281-FB1B HW F
901007 000% TO BE PAID BY MORTGAGEE
KOHN, JACQUELINE
621 NW 65TH AVE Coverages and Limits
PLANTATION FL 33317-1703
2.90
Section |
A Dwelling
Dwelling Extension Up To
B Personal Property 1787125
C Loss of Use Actual Loss
Sustained
5S
bs Deductibles - Section |
Other Losses 1.00% 2,375
Hurricane 2.00% 4) 750
Location: Same as Mailing Address
Section Il
L_ Personal Liability $300, 000
Damage to Property of Others
M Medical Payments to Others 1,000
Loss Settlement Pro. ions (See Policy) (Each Person)
A1 Replacement Cos' imilar Construction
B1 Limited Replacement Cost - Coverage B
Annual Premium $3,099.00
Covered Loss Due to
{
Forms, Options, and Endorsements
Homeowners Policy FP 7955 FL Hurricane Event 1,385.00 Included
Jewelry and Furs $2,500/$5,000 OPT J Other Covered Losses 1,714.00 anciuged
Ordinance/Law 50%/ $118,750 OPT OL FL EMPAASSESSMENT 0
Increase Dwlg up to $47,500 OPT ID Total Amount $3,101.00
Back-Up of Sewer or Drain FE-5702
Hurricane Coverage Endorsement FE-5710
Fungus (Including Mold) Exc! FE-545 Premium Reductions
FL Cat Grnd Cover Collapse Cov FE-3564 Home Alert Discount 111.00
Homeowners Policy Endorsement FE-344 Home/Auto Discount 280.00
Amend to Fe-5710.6 Hurr Cov FE-3616 Claim Record Discount 329.00
Actual Cash Value Endorsement * FE-3650 Wind Mitigation Discount 2,394.00
“Effective: NOV 24 2016
Inflation Coverage Index: 247.6
+ For the full name of each assessment entity and the dollar amount, please see the Florida Assessment
Page.
NOTICE: Information concerning changes in your policy language is included. Please call your agent if
you have any questions.
Coverage Change Premium Decrease $243.00 Rate Change Premium Decrease $830.00
Hurricane Deductibles may be per calendar year. There is also a possibility that the deductible applied
at the time of hurricane loss may be different than the amount shown. Refer to the applicable hurricane
deductible and/or hurricane coverage endorsement attached to this policy. Please contact your State
Moving? See your State Farm agent.
See reverse for important information.
4807 4018 71 Ree Prepared SEP 26 2016
No 2WORKINEKZET Telephone (954) 587-1448
ou
EXHIBIT 1
(page 4 of 73)
Mortgage: CITIBANK NA/CITIMORTGAGE INC
van No:
2nd Mtg: REGIONS BANK
oan No:
Farm agent if you have any questions.
Please help us update the data used to determine your premium. Contact your agent with the year each of
your home's utilities (heating/cooling, plumbing, or electrical) and roof were last updated.
Your coverage amount...
itis up to you to choose the coverages and limits that meet your needs. We recommend that you purchase a coverage limit at
least equal to the estimated replacement cost of your home. Replacement cost estimates are available from building contractors
and replacement cost appraisers, or, your agent can provide an Xactware estimate using information you provide about your
home. We can accept the type of estimate you choose as long as it provides a reasonable level of detail about your home, State
Farm® does not guarantee that any estimate will be the actual future cost to rebuild your home. Higher limits are available at
higher premiums. Lower limits are also available, which if selectad may make certain coverages unavailable to you. We
encourage you to periodically review your coverages and limits with your agent and to notify us of any changes or additions to
your home.
201
EXHIBIT 1
(page 5 of 73)
4600 a
FE-38506
Page 1 of 1
Notice of Change In Policy Terms
Effective with this policy term, FE-3650 ACTUAL CASH VALUE ENDORSEMENT is added to your policy.
This endorsement describes what the term “actual cash value” means where used in the policy.
However, this endorsement does not change any replacement cost coverage that exists in the policy.
This notice summarizes the changes being made to your policy. Please read the new endorsement care-
fully and note the following changes:
POTENTIAL REDUCTION IN COVERAGE
BS
ne Although not intended to change coverage, this change could potentially reduce or eliminate coverage
depending on how it is interpreted and, in that regard, should be viewed as either an actual or potential
reduction in or elimination of coverage.
. This endorsement defines “actual cash value” to mean the value of the damaged part of the property
at the time of loss, calculated as the estimated cost to repair or replace such property, less a deduction to
account for pre-loss depreciation. All components of this estimated cost, such as materials, labor,
overhead, and profit, are subject to depreciation. The depreciation deduction may include such con
siderations as age, condition, reduction in useful life, obsolescence, and any pre-loss damage in-
cluding wear, tear, or deterioration.
Endorsement FE-3650 follows this notice. Please read it thoroughly and place it with your policy. If you
have any questions about the information in this notice, please contact your State Farm® agent.
This notice is a general description of coverage and/or coverage changes and is not a statement of
contract. This message does not change, modify, or invalidate any of the provisions, terms, or conditions
of your policy, or any other applicable endorsements.
FE-3650 ACTUAL CASH VALUE ENDORSEMENT
The following is added to any provision which uses the term “actual cash value”:
Actual cash value means the value of the damaged part of the property at the time of loss, calculated as the estimated cost
to repair or replace such property, less a deduction to account for pre-loss depreciation. For this calculation, all components
of this estimated cost including. but not limited to:
1 materials, including any tax:
2. labor, including any tax; and
3. overhead and profit
are subject to depreciation.
The depreciation deduction may include such considerations as:
age;
condition;
reduction in useful life;
obsolescence; and
any pre-loss damage including wear, tear, or deterioration;
of the damaged part of the property.
All other policy provisions apply.
Fe-3050
©, Copyright, State Farm Mutual Automobile Insurance Company, 2015
4800
EXHIBIT 1
(page 6 of 73)
a
EXHIBIT 1
(page 7 of 73)
State Farm Florida Insurance Company 4601 a
558-2470 FL.2
NOTICE OF AVAILABILITY
Hurricane Deductible
ie A hurricane deductible is a special deductible that applies only to a covered loss caused by hurricane.
We offer hurricane deductibles of $500, 2%, 5%, 10% or 15% on qualifying Homeowners, Renters, Condominium Unitowners
or Manufactured Home policies that include hurricane coverage. Percentage hurricane deductible are determined by
multiplying the deductible percentage by your Cov. ye A— Dwelling limit if you have a Homeowners or Manufactured Home
3 Policy, or by yor Joverage B Personal Propertylimit if you have a Renters
or Condominium Unitowners Policy.
ne
‘The following chart illustrates how a percentage hurricane deductible is applied to a single loss in a calendar year. Let’s
assume your home has a coverage limit of $100,000 (Coverage A for Homeowners or Manufactured Home, or Coverage B for
Renters and Condomii jum Unitowner: id you have a covered hurricane loss of $20,000.
HURRICANE DEDUCTIBLE: 2% 5%, 10%
Amount of covered hurricane loss: $20,000 $20,000 $20,000
Deductible amount $2.00 $5,001 $10,001
(Your responsibility — Hurricane deductible
percentage multiplied by $100,000)
Amount State Farm® pays: $18,000 $15,000 $10,000
If you request a change in your hurricane deductible, the request for change must be made prior to the expiration date of
your current policy term, Alll changes to hurricane deductibles are made effective only at the policy renewal date. Mid term
requests for a hurricane deductible change will be made at the next policy renewal date.
Based on Florida statute 627.701, if you have a hurricane loss or have already had a hurricane loss during the calendar year,
prior to the renewal date, and you select a lower hurricane deductible, the lower hurricane deductible will not apply until
January 1 of the following year. If you have not had a covered hurricane loss during the calendar year, the lower deductible
will be effective on your renewal date.
Keep in mind that by accepting a larger hurricane deductible your premium may be lower; however, you will be responsible
for a greater portic of each covered loss, Some lenders may not allow a percentage hurricane deductible higher than 2%.
Check with your lenders to sce if they have any restrictions.
Cather Losses’ Deductible
“Other losses’ deductible is a deductible that applies:
+ toall covered losses from perils other than hurricane, and,
+ to all covered losses from hurricane if the hurricane deductible is exhausted, or,
+ if the rem: ning hurricane deductible is less than the amount of the ‘other losses’ deductible.
We offer an ‘other losses’ deductible equal to $500. Higher ‘other losses’ deductibles are also available. Keep in mind that
by accepting a larger deductible your premium may be lower; however, you will be responsible for a greater portion of each
covered loss. We do not offer an ‘other losses’ deductible in an amount greater than the hurricane deductible.
Your policy Declarations Page reflects your current ‘other losses’ deductible and hurricane deductible. These deductibles will
apply unless you choose different deductibles.
Please contact your § ate Farm agent if you would like more information, or would like to change your hurricane or
‘other losses’ deductibles.
553-2470 FL.2 (C) (4107)
70
Agent: NICK TURMES
4601
JR (CONTINUED) Telephone: (954) 587-1448
EXHIBIT 1
(page 8 of 73)
State Farm Florida Insurance Company
953-3299 FL
(Important information regarding your policy premium
Your policy premium may include one or more of the following assessments:
iz ens Propet Insurance Corporatiot
Under state law, Citizens Property Insurance Corporation (Citizens) may assess all property insurance companies to cover any
deficit resulting from losses, including hurricane losses. Insurance companies are permitted to recoup this assessment from
their policyholders, ‘These assessments may be imposed for more than one deficit year, and may be in the form of a “regular”
assessment or an “emergency” assessment. If your premium includes a Citizens assessment,
your renewal notice will indicate the
applicable assessment (for example, 2005 CITIZENS-REG, 2005 CITIZENS-EM, et ) and the assessment amount.
he Florida Insurance Guaranty Associatio!
‘The Florida Insurance Guaranty A\
ssociation (FIGA) was created by the Florida legislature to administer the claims of insolvent
property and casualty insurance companies. Under state law, the FIGA may secure funds to pay covered claims and expenses by
assessing property and casualty insurers. Insurance companies are permitted to recoup this assessment from their policyholders
‘These as essments may be imposed for more than one deficit year, and may be in the form of a “regular” assessment or an
“emergency” assessment. [your premium includesany FIGA se nents, your renewal notice will indicate the applicable
assessment (for example, 2009 FL GUARANTY-REG, 2007 LL GUARANTY-EM, ete.) and the assessment amount,
Florida Hurricane Catast
The Florida Hurricane Catastrophe Fund (FHCF) was created in 1993 during a special legislative session after Hurricane Andrew.
‘The fund protects the state’ interest in maintaining insurance capacity in Florida by providing reimbursements to insurers for a
portion of th -atastrophic hur cane losses. The assessments shall continue until the Office of Insurance Regulation is directed
by the Board to issue an Order supersedingor terminating
the Order levying the assessment. If your premium includes this
assessment, your renewal notice will indicate the applicable assessment (FHCF ASSESSMENT) and the assessment amount.
jorida Emergency Management Preparedness and Assistancs
Florida statute established the Emergency Management, Preparedness and Assistance (EMPA)Trust Fund, which is funded by an
annual surcharge of $2.00 on residences of every home-owner, mobile homeowner, tenant homeowner, and condominium unit
‘owner, and a $4.00 surcharge on commercial fire, commercial multiple peril, and business owner property insurance policies.
Money in the fund may not be used to supplant 1g funding. ‘he rules for the allocation of funds are: 60% to implement
and admi (er state and local emergen: management programs (trainii &, specified percentagesof which go to counties
and local agencies), 20% for state reliefa ince for non-federally declared disasters, and 20% for grants and loans to state or
regional agencies, local governments, and private organizations to implement projects that will further state and local emergency
management objectives. If your premium includes this assessment, your 1 newal notice wil \licate the app able assessment
(FL EMPA ASSE: MENT) and the assessment amount
Florida Trust Fund
The funds received from the Insurance Regulatory Trust Fund shall be used by the staffof the Florida State Fire College to
provide all necessary ser ices, training, equi ment, and supplies to carry out the colleg; respon: . including, but not
limited to, the State Fire Marshal Scholarship Grant Program and the procurement of training films, videotapes, audiovisual
‘equipment, and other useful information on -e, firefighting,and fireprevention, including public fire service information
packages. If your premium includes this assessment, your renewal notice will indicate the applicable assessment (FL TRUST
FUND) and the assessment amount.
If you have any questions regarding the information in this notice, please contact your State Farm® agent.
553-3299 ©
n
Agent: NICK TURMES JR (CONTINUED) Telephone: (954) 587-1448
EXHIBIT 1
(page 9 of 73)
State Farm Florida Insurance Company 4602 a
553-3369 FL
(norice OF AVAILABILITY
.
ka 50% Building Ordinance or Law Coverage
Your State Farm? Florida Homeowners Policy provides Building Ordinance or Law coverage equal to 25% of the Coverage A -
Dwelling limit of insurance. There may be changes in local building codes that regulate the construction, repair or demolition
of your home. In the event of a loss, you may not be able to rebuild or repair your home with the same materials that were used
a when it was constructed, Building Ordinance or Law coverage provides an additional amount of coverage to help you comply
BE
be with the changes in local building codes.
Building Ordinance or Law coverage of 50% is also available for an additional premium. If you do not currently y Building
Ordinance or Law coverage of 50% and are interested in purchasing this coverage, please contact your State Farm agent.
553-3369 FL (C)
s 2948
(notice TO POLICYHOLDER
For a comprehensive description of coverages and forms, please refer to your poli
Policy changes that you requested before the “Date Prepared” on your Renewal Certificate are effective on the renewal date of
this policy unlesindicated otherwiseby a separate endorsement, binder or Amended Declarations Page. Any cov age forms
or endorsements included with your Renewal Certificate are effective on the renewal date of this policy.
Po y changes that you requested after the “Date Prepared”on your Renewal Certificate will be sent to you as an Amended
Declarations Page or as an endorsement to your policy. You will be billed for any resulting premium increase later:
If you have acquired any valuable property items, ade any improvements to your home, or have questions about your
insurance coverage, please contact your State Farm” agent.
553-2948 (C) (0/08)
70
Agent: NICK TURMES
4602
JR (CONTINUED) Telephone: (954) 587-1448
EXHIBIT 1
(page 10 of 73)
State Farm Florida Insurance Company
353-2798
IMPORTANT NOTICE . . Discounts and Rating
‘The longer you are insured with State Farm" and the fewer claims you have, the lower your premius . For policyholders
insured by State Farm for three or more years, the Cl m Free Discount P in provides a premium discount if you have not had
any claims considered for the Plan in the most recent three-year period since becoming insured with State Farm. Premium
adjustments under the Claim Record Rating Plan are based on the number of years you have been insured with State Farm
and on the number of claims that we consider for the Plan. Depending on the Plan(s) that applies in your ate/provinee,
claims considered for the Plans generally include claims resulting in a paid loss and may include weather-related claims.
Additionally, depending on your state/province’s plan and your tenure with State Parm, any claims with your prior insurer
resulting in property damag or injury may also influence your premium. For further information about whether a Claim
Free Discount is in effect in your state/province, the Claim Record Rating Plan that applies in your state/province, and the
claims we consider for the Plans, please contact your State Farm agent.
5555: 2798 (C) (10/07)
553-3144
(IMPORTANT NOTICE . . Information Regarding Your Premium
Consumer reports may be used to determine the price you are charged. We may also obtain and use a credit-based insurance
core developed from information contained in these reports. We may use a third party in connection with the development
of your insurance score.
You have the right to request, no more than once in a 12 month period that your policy be re-rated. Re-rating could result in a
lower rate, no change in rate or a higher rate.
553-3144 (C) (10/09)
Agent: NICK TURMES JR Telephone: (954) 587-1448
n
EXHIBIT 1
(page 11 of 73)
FE-5702.2
Page 1 of 1
FE-5702.2 BACK-UP OF SEWER OR DRAIN ENDORSEMENT
The following is added to SECTION I —- ADDITIONAL COV- SECTION | - LOSSES NOT INSURED
ERAGES: Item 2. c. Water, is replaced by:
Back-up of Sewer or Drain. We cover the dwelling 2 C. Water, meaning:
used as a private residence on the residence premises
shown in the Declarations for direct physical loss (1) flood, surface water, waves (including tid-
caused by back-up of water or sewage, subject to the al wave, tsunami, and seiche) tides, tidal
following: water, overflow of any body of water, or
spray or surge from any of these, all
a The back-up must be directly and immediately whether driven by wind or not; except as
caused solely by water or sewage: specifically provided in SECTION | —-
ADDITIONAL COVERAGES, Back-up of
(1) from outside the residence premises plumb- Sewer or Drain;
ing system that enters through a sewer or drain
located inside the interior of the dwelling; or (2) water or sewage from outside the resi-
dence premises plumbing system that en-
(2) which enters into and overflows from within a ters through sewers or drains, or water
sump pump, sump pump well, or any other sys- which enters into and overflows from with-
tem located inside the interior of the dwelling in a sump pump, sump pump well or any
designed to remove subsurface water drained other system designed to remove subsur-
from the foundation area. face water which is drained from the foun-
dation area; except as specifically
Coverage does not apply if: provided in SECTION | - ADDITIONAL
(1) the loss is caused by your negligence; or COVERAGES, Back-up of Sewer or
Drain;
(2) the loss occurs or is in progress within the first
5 days of the inception of this endorsement. (3) water below the surface of the ground, in-
This limitation does not apply when: cluding water which exerts pressure on, or
seeps or leaks through a building, side-
(a) this endorsement is attached to a newly walk, driveway, foundation, swimming pool
issued policy; or or other structure; or
(b) this endorsement is attached to replace an- (4) material carried or otherwise moved by
other Back-Up of Sewer or Drain Endorse- any of the water, as described in para-
ment. However, if this endorsement's graphs (1) through (3) above.
coverage limits are higher than those of the However, we do insure for any direct loss by
endorsement it replaces, then the limitation fire, explosion or theft resulting from water,
described in (2) above applies only to the provided the resulting loss is itself a Loss In-
increase in coverage limits. sured.
The deductible for each loss under this coverage is the For the purpose of this endorsement only, SECTION | -
amount shown in the Declarations under DEDUCT- CONDITIONS, Other Insurance is replaced by:
IBLES — SECTION I, but in no event less than $500. Other Insurance. This coverage is excess over other
valid and collectible insurance.
For the purpose of this endorsement only, SECTION | —
LOSSES INSURED, item 13.c. is deleted from the policy. All other policy provisions apply.
FE-5702.2
©, Copyright, State Farm Mutual Automobile Insurance Company, 2012
EXHIBIT 1
(page 12 of 73)
FE-5710.6
Page 1 of 5
FE-5710.6 HURRICANE COVERAGE ENDORSEMENT
With exception of any coverage that may be provided under SECTION | - ADDITIONAL COVERAGES or by endorsement for
COVERAGE D - LOSS ASSESSMENT, there is no coverage for loss caused by a hurricane under Section | of the policy other
than that which is provided by this endorsement. No coverage is provided for accidental direct physical loss to the property de-
scribed in the policy caused by a hurricane other than that which is provided by this endorsement.
The provisions of this endorsement apply only in respect to loss caused by hurricane.
DEFINITIONS d swimming pools, hot tubs, spas and associated
When used in this endorsement: plumbing, filtering and circulating sys
Preview
Filing # 68451925 E-Filed 02/26/2018 01:21:35 PM IN THE CIRCUIT COURT OF THE 17™ JUDICIAL CIRCUIT IN AND FOR BROWARD COUNTY, FLORIDA CIRCUIT CIVIL DIVISION CASE NO.: CACE 18-001121 (Div. 05) JACQUELINE KOHN, Plaintiffs, VS, STATE FARM FLORIDA INSURANCE COMPANY, Defendant. STATE FARM'S ANSWER TO THE COMPLAINT Defendant, STATE FARM FLORIDA INSURANCE COMPANY, hereby answers the Complaint filed in this action by Plaintiff JACQUELINE KOHN as follows: 1 Admitted. 2 Admitted. 3 Admitted in part, and denied in part. Title to the property is held by "Jacqueline Kohn, Trustee of the Jacqueline Declaration of Trust Dated May 5, 2012" pursuant to Warranty Deed executed May 4, 2012, BK 48752, PAGE 869, Broward County Records. 4 Admitted that a true copy of the described policy is attached hereto as Exhibit 1. However, the "Checklist of Coverage" included as part of Exhibit 1 (pages 42-44) is not part of the policy, it does not modify the terms of the insurance contract, and it does not create a cause of action, nor is it admissible in any civil action. See, §627.4143(6), Fla.Stat. 5 Admitted. *** FILED: BROWARD COUNTY. FL BRENDA D. FORMAN. CLERK 2/26/2018 1:21:35 PM.**** CASE NO.: CACE 18-001121 (Div. 05) Answer to the Complaint Page 2 6 Defendant is without knowledge sufficient to admit or deny when damage was noticed by Plaintiff; therefore, denied. 7 Admitted that some covered loss caused by water leaking from a waste arm inside the kitchen wall of Plaintiff's home occurred, and the covered loss was paid by STATE FARM; otherwise, denied. 8 Admitted. 9 Denied. 10. Denied. Plaintiff tore out the waste plumbing system (cast iron pipes) beneath her home before notifying STATE FARM of any loss associated with the plumbing. The policy requires that Plaintiff give immediate notice of any loss that may be covered by the policy; and the policy requires that Plaintiff exhibit the damage to STATEF FARM upon demand. Plaintiff claimed that a condition of the waste plumbing system beneath the home caused the escape of water that damaged her home, but by failing to give immediate notice and by failing to allow STATE FARM to inspect and test the drain lines before they were torn out, STATE FARM was prejudiced in its ability to correlate a condition of the waste plumbing system with the reported interior water damage. However, STATE FARM was able to determine that a waste arm (a horizontal section of the drain system serving the kitchen sink and located within the wall of the home behind the sink cabinets, which had not been torn out prior to STATE FARM's inspection) was leaking. STATE FARM paid to access the waste arm pursuant to the policy. ll. Prior responses are adopted. 12. Admitted, and it did so. 13. Denied. 14. Denied. CASE NO.: CACE 18-001121 (Div. 05) Answer to the Complaint Page 3 15 Denied. 16. Denied. 17 Denied. 18 Denied. FIRST AFFIRMATIVE DEFENSE The following is pled in the affirmative solely to clarify Defendant's position. Coverage under the policy for "tear out" is found under Section I — Additional Coverages. Plaintiff has the sole burden to prove that all conditions of the coverage for tear out have occurred. By pleading the following in the affirmative, Defendant does not waive the Plaintiff's burden of proof, nor does Defendant undertake to prove the following: Upon information and belief, Plaintiff seeks coverage for tear out in order to facilitate the replacement of the waste plumbing system (cast iron pipes) beneath her home. The policy provides limited coverage for tear out under Section I — Additional Coverages, 13. Tear Out. That coverage is reproduced here: Tear Out. If a Loss Insured to Coverage A property is caused by water or steam escaping from a system or appliance, we will also pay the reasonable cost you incur to tear out and replace only that particular part of the building or condominium unit owned by you necessary to gain access to the specific point of that system or appliance from which the water or steam escaped. We will not cover the cost of repairing or replacing the system or appliance itself. This coverage does not increase the limit applying to Coverage A property. See, Exhibit 1, at 27. See Also, Exhibit 1, at 28, deleting reference to tear-out coverage under Section I — Losses Not Insured, 1-f. The water that the caused a Loss Insured to the Plaintiff's building did not escape from any specific point of the waste plumbing system (cast iron pipes) beneath Plaintiff's home that CASE NO.: CACE 18-001121 (Div. 05) Answer to the Complaint Page 4 necessarily must be accessed by tearing out any part of the Plaintiffs building. The water the leaked into Plaintiff's home came from a broken waste arm located in the wall of her kitchen behind the cabinets, which STATE FARM paid to access under Section I — Additional Coverages, 13., Tear Out. No payment is owed relating to the replacement of the waste plumbing system (cast iron pipes) beneath Plaintiff's home. SECOND AFFIRMATIVE DEFENSE If the Plaintiff waste plumbing system beneath the home leaked into the home, then this affirmative defense shall apply. Plaintiff tore out the waste plumbing system beneath her home before notifying STATE FARM of any loss associated with that part of the plumbing. The policy requires that Plaintiff give immediate notice of any loss that may be covered by the policy; and the policy requires that Plaintiff exhibit the damage to STATEF FARM upon demand. Plaintiff and/or her representatives claimed that a condition of the waste_plumbing system beneath the home caused the escape of water that damaged her home, but by failing to give immediate notice and by failing to allow STATE FARM to inspect and test the waste plumbing system beneath the home before it was torn out, STATE FARM was prejudiced in its ability to correlate a condition of the waste plumbing system beneath the home with the reported interior water damage. However, STATE FARM was able to determine that a waste arm (a horizontal section of the drain system serving the kitchen sink and located within the wall of the home behind the sink cabinets, which had not been torn out prior to STATE FARM's inspection) was leaking. STATE FARM paid to access the waste arm pursuant to the policy. As a result of Plaintiffs failure to comply with the policy at Section I — Conditions, 2. Your Duties After Loss CASE NO.: CACE 18-001121 (Div. 05) Answer to the Complaint Page 5 (Exhibit 1, at 60-61), prejudice resulted to STATE FARM, and there is no coverage for that part of the claim seeking coverage to tear out the waste plumbing system beneath the home. THIRD AFFIRMATIVE DEFENSE The loss to the waste plumbing system itself, whether a waste arm located in the wall or the cast iron pipes located beneath the home, consists or was caused by wear, tear, deterioration, rust/corrosion, which are perils excluded from coverage by the policy under Section I — Losses Not Insured, 1.g. and h.. See, Exhibit 1, at 56-57. This defense is not intended to apply to the claim for water that is alleged to have escaped from the waste plumbing system and caused damage to Plaintiff's home. JURY TRIAL IS DEMANDED OF ALL MATTERS SO TRIABLE CERTIFICATE OF SERVICE WE HEREBY CERTIFY that a true and correct copy of foregoing was served through the Florida Courts E-filing Portal on this 26th day of February, 2018, upon Donna DeVaney Stockham, Esq., Attorney for Plaintiffs, at the following address(es): dstockham@stockhamlawgroup.com meassida@stockhamlawgroup.com agonzalez-abreu@stockhamlawgroup.com CHIMPOULIS, HUNTER & LYNN, P.A. Attorneys for Defendant STATE FARM 150 S. Pine Island Road Suite 510 Plantation, FL 33324 Phone: (954) 463-0033 s/ Brian Charlton Hunter BY: BRIAN CHARLTON HUNTER, ESQ. Florida Bar No. 981206 bhunter(@chl-law.com S~ Statefarm Certified Policy Record I, the undersigned, do hereby confirm that | am custodian of the records pertaining to the issuance of policies by State Farm Florida Insurance Company. | certify that the attached documents represent a true and accurate record of the terms and conditions of Policy Number EE including any endorsements, if applicable, for the policy term(s) 11/24/2016-11/24/2017 and insuring KOHN, JACQUELINE based on available records. The policy was in effect on the loss date of 10/29/2017. JENNIFER WILLIAMSON Underwriter Date: 01/11/2018 1004516 2000 143551 200 03-21-2012 EXHIBIT 1 (page 1 of 73) State Farm Florida Insurance Company RENEWAL CERTIFICATE SUPPLEMENTAL PAGE 7401 G ess Gardens Blvd, POLICY NUMBER, a itinter Haven, FL 33888-0007 Homeowners Poli INOV 24 2016 to NOV 24 2017 AT2 HAS. 2281-FB1B HW F 201007 000: KOHN, JACQUELINE 621 NW 65TH AVE PLANTATION FL 33317-1703 ike We ete Peale bs Florida law requires this notice: 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 a Ov D_TO CONSIDER THE_PURCHA E OF FLOOD INSURAN ONAL FLOOD INSURANCE PROGRAM. WITHOUT Tig. COVERAGE AV UNCOVERED LOSS: AS BIscuss: THESE COVERAGES WITH Your INSURANCE YOUR POLICY PROVIDES COVERAGE FOR CAL APTRORHIG G O LLAPSE THAT LTS IN THE PROPERTY BEING CONDEMNED AND ONINHABITABLE. OTHERWISE, YOUR POLICY DOES NOT PROVIDE, SaVERS FOr INK KHOLE vEQSSES. vou E AD AL SINKHOLE 1 ISSses FOR AN ADDITIONAL | PREMIUM. © 4018 1 Agent NICK TURMES JR Please keep this part for your record. Namo KanrKZer Telephone (954) 587-1448 Rea EP 26 2016 8 Prepared EXHIBIT 1 (page 2 of 73) State Farm Florida Insurance Company Florida Assessment Page 7401 Cypress Gardens Blvd, POLICY NUMBER Winter Javen, FL 33888-0007 Homeowners Poli INOV 24 2016 to NOV 24 2017 Full Entity Name Amount Florida Emergency Management Preparedness, and Assistance Trust Fund Assessment $2.00 Total Florida Assessments $ 2.00 § 302 EXHIBIT 1 (page 3 of 73) State Farm Florida Insurance Company RENEWAL CERTIFICATE 7401 Cypress Gardens Blvd, POLICY NUMBER. as Winter Javen, FL 33888-0007 Homeowners Poli INOV 24 2016 to NOV 24 2017 HAS. 2281-FB1B HW F 901007 000% TO BE PAID BY MORTGAGEE KOHN, JACQUELINE 621 NW 65TH AVE Coverages and Limits PLANTATION FL 33317-1703 2.90 Section | A Dwelling Dwelling Extension Up To B Personal Property 1787125 C Loss of Use Actual Loss Sustained 5S bs Deductibles - Section | Other Losses 1.00% 2,375 Hurricane 2.00% 4) 750 Location: Same as Mailing Address Section Il L_ Personal Liability $300, 000 Damage to Property of Others M Medical Payments to Others 1,000 Loss Settlement Pro. ions (See Policy) (Each Person) A1 Replacement Cos' imilar Construction B1 Limited Replacement Cost - Coverage B Annual Premium $3,099.00 Covered Loss Due to { Forms, Options, and Endorsements Homeowners Policy FP 7955 FL Hurricane Event 1,385.00 Included Jewelry and Furs $2,500/$5,000 OPT J Other Covered Losses 1,714.00 anciuged Ordinance/Law 50%/ $118,750 OPT OL FL EMPAASSESSMENT 0 Increase Dwlg up to $47,500 OPT ID Total Amount $3,101.00 Back-Up of Sewer or Drain FE-5702 Hurricane Coverage Endorsement FE-5710 Fungus (Including Mold) Exc! FE-545 Premium Reductions FL Cat Grnd Cover Collapse Cov FE-3564 Home Alert Discount 111.00 Homeowners Policy Endorsement FE-344 Home/Auto Discount 280.00 Amend to Fe-5710.6 Hurr Cov FE-3616 Claim Record Discount 329.00 Actual Cash Value Endorsement * FE-3650 Wind Mitigation Discount 2,394.00 “Effective: NOV 24 2016 Inflation Coverage Index: 247.6 + For the full name of each assessment entity and the dollar amount, please see the Florida Assessment Page. NOTICE: Information concerning changes in your policy language is included. Please call your agent if you have any questions. Coverage Change Premium Decrease $243.00 Rate Change Premium Decrease $830.00 Hurricane Deductibles may be per calendar year. There is also a possibility that the deductible applied at the time of hurricane loss may be different than the amount shown. Refer to the applicable hurricane deductible and/or hurricane coverage endorsement attached to this policy. Please contact your State Moving? See your State Farm agent. See reverse for important information. 4807 4018 71 Ree Prepared SEP 26 2016 No 2WORKINEKZET Telephone (954) 587-1448 ou EXHIBIT 1 (page 4 of 73) Mortgage: CITIBANK NA/CITIMORTGAGE INC van No: 2nd Mtg: REGIONS BANK oan No: Farm agent if you have any questions. Please help us update the data used to determine your premium. Contact your agent with the year each of your home's utilities (heating/cooling, plumbing, or electrical) and roof were last updated. Your coverage amount... itis up to you to choose the coverages and limits that meet your needs. We recommend that you purchase a coverage limit at least equal to the estimated replacement cost of your home. Replacement cost estimates are available from building contractors and replacement cost appraisers, or, your agent can provide an Xactware estimate using information you provide about your home. We can accept the type of estimate you choose as long as it provides a reasonable level of detail about your home, State Farm® does not guarantee that any estimate will be the actual future cost to rebuild your home. Higher limits are available at higher premiums. Lower limits are also available, which if selectad may make certain coverages unavailable to you. We encourage you to periodically review your coverages and limits with your agent and to notify us of any changes or additions to your home. 201 EXHIBIT 1 (page 5 of 73) 4600 a FE-38506 Page 1 of 1 Notice of Change In Policy Terms Effective with this policy term, FE-3650 ACTUAL CASH VALUE ENDORSEMENT is added to your policy. This endorsement describes what the term “actual cash value” means where used in the policy. However, this endorsement does not change any replacement cost coverage that exists in the policy. This notice summarizes the changes being made to your policy. Please read the new endorsement care- fully and note the following changes: POTENTIAL REDUCTION IN COVERAGE BS ne Although not intended to change coverage, this change could potentially reduce or eliminate coverage depending on how it is interpreted and, in that regard, should be viewed as either an actual or potential reduction in or elimination of coverage. . This endorsement defines “actual cash value” to mean the value of the damaged part of the property at the time of loss, calculated as the estimated cost to repair or replace such property, less a deduction to account for pre-loss depreciation. All components of this estimated cost, such as materials, labor, overhead, and profit, are subject to depreciation. The depreciation deduction may include such con siderations as age, condition, reduction in useful life, obsolescence, and any pre-loss damage in- cluding wear, tear, or deterioration. Endorsement FE-3650 follows this notice. Please read it thoroughly and place it with your policy. If you have any questions about the information in this notice, please contact your State Farm® agent. This notice is a general description of coverage and/or coverage changes and is not a statement of contract. This message does not change, modify, or invalidate any of the provisions, terms, or conditions of your policy, or any other applicable endorsements. FE-3650 ACTUAL CASH VALUE ENDORSEMENT The following is added to any provision which uses the term “actual cash value”: Actual cash value means the value of the damaged part of the property at the time of loss, calculated as the estimated cost to repair or replace such property, less a deduction to account for pre-loss depreciation. For this calculation, all components of this estimated cost including. but not limited to: 1 materials, including any tax: 2. labor, including any tax; and 3. overhead and profit are subject to depreciation. The depreciation deduction may include such considerations as: age; condition; reduction in useful life; obsolescence; and any pre-loss damage including wear, tear, or deterioration; of the damaged part of the property. All other policy provisions apply. Fe-3050 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2015 4800 EXHIBIT 1 (page 6 of 73) a EXHIBIT 1 (page 7 of 73) State Farm Florida Insurance Company 4601 a 558-2470 FL.2 NOTICE OF AVAILABILITY Hurricane Deductible ie A hurricane deductible is a special deductible that applies only to a covered loss caused by hurricane. We offer hurricane deductibles of $500, 2%, 5%, 10% or 15% on qualifying Homeowners, Renters, Condominium Unitowners or Manufactured Home policies that include hurricane coverage. Percentage hurricane deductible are determined by multiplying the deductible percentage by your Cov. ye A— Dwelling limit if you have a Homeowners or Manufactured Home 3 Policy, or by yor Joverage B Personal Propertylimit if you have a Renters or Condominium Unitowners Policy. ne ‘The following chart illustrates how a percentage hurricane deductible is applied to a single loss in a calendar year. Let’s assume your home has a coverage limit of $100,000 (Coverage A for Homeowners or Manufactured Home, or Coverage B for Renters and Condomii jum Unitowner: id you have a covered hurricane loss of $20,000. HURRICANE DEDUCTIBLE: 2% 5%, 10% Amount of covered hurricane loss: $20,000 $20,000 $20,000 Deductible amount $2.00 $5,001 $10,001 (Your responsibility — Hurricane deductible percentage multiplied by $100,000) Amount State Farm® pays: $18,000 $15,000 $10,000 If you request a change in your hurricane deductible, the request for change must be made prior to the expiration date of your current policy term, Alll changes to hurricane deductibles are made effective only at the policy renewal date. Mid term requests for a hurricane deductible change will be made at the next policy renewal date. Based on Florida statute 627.701, if you have a hurricane loss or have already had a hurricane loss during the calendar year, prior to the renewal date, and you select a lower hurricane deductible, the lower hurricane deductible will not apply until January 1 of the following year. If you have not had a covered hurricane loss during the calendar year, the lower deductible will be effective on your renewal date. Keep in mind that by accepting a larger hurricane deductible your premium may be lower; however, you will be responsible for a greater portic of each covered loss, Some lenders may not allow a percentage hurricane deductible higher than 2%. Check with your lenders to sce if they have any restrictions. Cather Losses’ Deductible “Other losses’ deductible is a deductible that applies: + toall covered losses from perils other than hurricane, and, + to all covered losses from hurricane if the hurricane deductible is exhausted, or, + if the rem: ning hurricane deductible is less than the amount of the ‘other losses’ deductible. We offer an ‘other losses’ deductible equal to $500. Higher ‘other losses’ deductibles are also available. Keep in mind that by accepting a larger deductible your premium may be lower; however, you will be responsible for a greater portion of each covered loss. We do not offer an ‘other losses’ deductible in an amount greater than the hurricane deductible. Your policy Declarations Page reflects your current ‘other losses’ deductible and hurricane deductible. These deductibles will apply unless you choose different deductibles. Please contact your § ate Farm agent if you would like more information, or would like to change your hurricane or ‘other losses’ deductibles. 553-2470 FL.2 (C) (4107) 70 Agent: NICK TURMES 4601 JR (CONTINUED) Telephone: (954) 587-1448 EXHIBIT 1 (page 8 of 73) State Farm Florida Insurance Company 953-3299 FL (Important information regarding your policy premium Your policy premium may include one or more of the following assessments: iz ens Propet Insurance Corporatiot Under state law, Citizens Property Insurance Corporation (Citizens) may assess all property insurance companies to cover any deficit resulting from losses, including hurricane losses. Insurance companies are permitted to recoup this assessment from their policyholders, ‘These assessments may be imposed for more than one deficit year, and may be in the form of a “regular” assessment or an “emergency” assessment. If your premium includes a Citizens assessment, your renewal notice will indicate the applicable assessment (for example, 2005 CITIZENS-REG, 2005 CITIZENS-EM, et ) and the assessment amount. he Florida Insurance Guaranty Associatio! ‘The Florida Insurance Guaranty A\ ssociation (FIGA) was created by the Florida legislature to administer the claims of insolvent property and casualty insurance companies. Under state law, the FIGA may secure funds to pay covered claims and expenses by assessing property and casualty insurers. Insurance companies are permitted to recoup this assessment from their policyholders ‘These as essments may be imposed for more than one deficit year, and may be in the form of a “regular” assessment or an “emergency” assessment. [your premium includesany FIGA se nents, your renewal notice will indicate the applicable assessment (for example, 2009 FL GUARANTY-REG, 2007 LL GUARANTY-EM, ete.) and the assessment amount, Florida Hurricane Catast The Florida Hurricane Catastrophe Fund (FHCF) was created in 1993 during a special legislative session after Hurricane Andrew. ‘The fund protects the state’ interest in maintaining insurance capacity in Florida by providing reimbursements to insurers for a portion of th -atastrophic hur cane losses. The assessments shall continue until the Office of Insurance Regulation is directed by the Board to issue an Order supersedingor terminating the Order levying the assessment. If your premium includes this assessment, your renewal notice will indicate the applicable assessment (FHCF ASSESSMENT) and the assessment amount. jorida Emergency Management Preparedness and Assistancs Florida statute established the Emergency Management, Preparedness and Assistance (EMPA)Trust Fund, which is funded by an annual surcharge of $2.00 on residences of every home-owner, mobile homeowner, tenant homeowner, and condominium unit ‘owner, and a $4.00 surcharge on commercial fire, commercial multiple peril, and business owner property insurance policies. Money in the fund may not be used to supplant 1g funding. ‘he rules for the allocation of funds are: 60% to implement and admi (er state and local emergen: management programs (trainii &, specified percentagesof which go to counties and local agencies), 20% for state reliefa ince for non-federally declared disasters, and 20% for grants and loans to state or regional agencies, local governments, and private organizations to implement projects that will further state and local emergency management objectives. If your premium includes this assessment, your 1 newal notice wil \licate the app able assessment (FL EMPA ASSE: MENT) and the assessment amount Florida Trust Fund The funds received from the Insurance Regulatory Trust Fund shall be used by the staffof the Florida State Fire College to provide all necessary ser ices, training, equi ment, and supplies to carry out the colleg; respon: . including, but not limited to, the State Fire Marshal Scholarship Grant Program and the procurement of training films, videotapes, audiovisual ‘equipment, and other useful information on -e, firefighting,and fireprevention, including public fire service information packages. If your premium includes this assessment, your renewal notice will indicate the applicable assessment (FL TRUST FUND) and the assessment amount. If you have any questions regarding the information in this notice, please contact your State Farm® agent. 553-3299 © n Agent: NICK TURMES JR (CONTINUED) Telephone: (954) 587-1448 EXHIBIT 1 (page 9 of 73) State Farm Florida Insurance Company 4602 a 553-3369 FL (norice OF AVAILABILITY . ka 50% Building Ordinance or Law Coverage Your State Farm? Florida Homeowners Policy provides Building Ordinance or Law coverage equal to 25% of the Coverage A - Dwelling limit of insurance. There may be changes in local building codes that regulate the construction, repair or demolition of your home. In the event of a loss, you may not be able to rebuild or repair your home with the same materials that were used a when it was constructed, Building Ordinance or Law coverage provides an additional amount of coverage to help you comply BE be with the changes in local building codes. Building Ordinance or Law coverage of 50% is also available for an additional premium. If you do not currently y Building Ordinance or Law coverage of 50% and are interested in purchasing this coverage, please contact your State Farm agent. 553-3369 FL (C) s 2948 (notice TO POLICYHOLDER For a comprehensive description of coverages and forms, please refer to your poli Policy changes that you requested before the “Date Prepared” on your Renewal Certificate are effective on the renewal date of this policy unlesindicated otherwiseby a separate endorsement, binder or Amended Declarations Page. Any cov age forms or endorsements included with your Renewal Certificate are effective on the renewal date of this policy. Po y changes that you requested after the “Date Prepared”on your Renewal Certificate will be sent to you as an Amended Declarations Page or as an endorsement to your policy. You will be billed for any resulting premium increase later: If you have acquired any valuable property items, ade any improvements to your home, or have questions about your insurance coverage, please contact your State Farm” agent. 553-2948 (C) (0/08) 70 Agent: NICK TURMES 4602 JR (CONTINUED) Telephone: (954) 587-1448 EXHIBIT 1 (page 10 of 73) State Farm Florida Insurance Company 353-2798 IMPORTANT NOTICE . . Discounts and Rating ‘The longer you are insured with State Farm" and the fewer claims you have, the lower your premius . For policyholders insured by State Farm for three or more years, the Cl m Free Discount P in provides a premium discount if you have not had any claims considered for the Plan in the most recent three-year period since becoming insured with State Farm. Premium adjustments under the Claim Record Rating Plan are based on the number of years you have been insured with State Farm and on the number of claims that we consider for the Plan. Depending on the Plan(s) that applies in your ate/provinee, claims considered for the Plans generally include claims resulting in a paid loss and may include weather-related claims. Additionally, depending on your state/province’s plan and your tenure with State Parm, any claims with your prior insurer resulting in property damag or injury may also influence your premium. For further information about whether a Claim Free Discount is in effect in your state/province, the Claim Record Rating Plan that applies in your state/province, and the claims we consider for the Plans, please contact your State Farm agent. 5555: 2798 (C) (10/07) 553-3144 (IMPORTANT NOTICE . . Information Regarding Your Premium Consumer reports may be used to determine the price you are charged. We may also obtain and use a credit-based insurance core developed from information contained in these reports. We may use a third party in connection with the development of your insurance score. You have the right to request, no more than once in a 12 month period that your policy be re-rated. Re-rating could result in a lower rate, no change in rate or a higher rate. 553-3144 (C) (10/09) Agent: NICK TURMES JR Telephone: (954) 587-1448 n EXHIBIT 1 (page 11 of 73) FE-5702.2 Page 1 of 1 FE-5702.2 BACK-UP OF SEWER OR DRAIN ENDORSEMENT The following is added to SECTION I —- ADDITIONAL COV- SECTION | - LOSSES NOT INSURED ERAGES: Item 2. c. Water, is replaced by: Back-up of Sewer or Drain. We cover the dwelling 2 C. Water, meaning: used as a private residence on the residence premises shown in the Declarations for direct physical loss (1) flood, surface water, waves (including tid- caused by back-up of water or sewage, subject to the al wave, tsunami, and seiche) tides, tidal following: water, overflow of any body of water, or spray or surge from any of these, all a The back-up must be directly and immediately whether driven by wind or not; except as caused solely by water or sewage: specifically provided in SECTION | —- ADDITIONAL COVERAGES, Back-up of (1) from outside the residence premises plumb- Sewer or Drain; ing system that enters through a sewer or drain located inside the interior of the dwelling; or (2) water or sewage from outside the resi- dence premises plumbing system that en- (2) which enters into and overflows from within a ters through sewers or drains, or water sump pump, sump pump well, or any other sys- which enters into and overflows from with- tem located inside the interior of the dwelling in a sump pump, sump pump well or any designed to remove subsurface water drained other system designed to remove subsur- from the foundation area. face water which is drained from the foun- dation area; except as specifically Coverage does not apply if: provided in SECTION | - ADDITIONAL (1) the loss is caused by your negligence; or COVERAGES, Back-up of Sewer or Drain; (2) the loss occurs or is in progress within the first 5 days of the inception of this endorsement. (3) water below the surface of the ground, in- This limitation does not apply when: cluding water which exerts pressure on, or seeps or leaks through a building, side- (a) this endorsement is attached to a newly walk, driveway, foundation, swimming pool issued policy; or or other structure; or (b) this endorsement is attached to replace an- (4) material carried or otherwise moved by other Back-Up of Sewer or Drain Endorse- any of the water, as described in para- ment. However, if this endorsement's graphs (1) through (3) above. coverage limits are higher than those of the However, we do insure for any direct loss by endorsement it replaces, then the limitation fire, explosion or theft resulting from water, described in (2) above applies only to the provided the resulting loss is itself a Loss In- increase in coverage limits. sured. The deductible for each loss under this coverage is the For the purpose of this endorsement only, SECTION | - amount shown in the Declarations under DEDUCT- CONDITIONS, Other Insurance is replaced by: IBLES — SECTION I, but in no event less than $500. Other Insurance. This coverage is excess over other valid and collectible insurance. For the purpose of this endorsement only, SECTION | — LOSSES INSURED, item 13.c. is deleted from the policy. All other policy provisions apply. FE-5702.2 ©, Copyright, State Farm Mutual Automobile Insurance Company, 2012 EXHIBIT 1 (page 12 of 73) FE-5710.6 Page 1 of 5 FE-5710.6 HURRICANE COVERAGE ENDORSEMENT With exception of any coverage that may be provided under SECTION | - ADDITIONAL COVERAGES or by endorsement for COVERAGE D - LOSS ASSESSMENT, there is no coverage for loss caused by a hurricane under Section | of the policy other than that which is provided by this endorsement. No coverage is provided for accidental direct physical loss to the property de- scribed in the policy caused by a hurricane other than that which is provided by this endorsement. The provisions of this endorsement apply only in respect to loss caused by hurricane. DEFINITIONS d swimming pools, hot tubs, spas and associated When used in this endorsement: plumbing, filtering and circulating sys