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Filing # 106090682 E-Filed 04/09/2020 04:32:26 PM
IN THE CIRCUIT COURT OF THE
FOURTEENTH JUDICIAL CIRCUIT, IN AND FOR
BAY COUNTY, FLORIDA
MARGARITA VENCIUS-REDD,
Plaintiff,
vs.
CASE NO.: 19-004413CA
CASTLE KEY INDEMNITY COMPANY,
Defendant.
/
DEFENDANT, CASTLE KEY INDEMNITY COMPANY’S
MOTION TO DISMISS AMENDED COMPLAINT AND ALTERNATIVE
MOTION TO COMPEL APPRAISAL
Defendant, Castle Key Indemnity Company, pursuant to Florida Rule of Civil Procedure
1.140(b)(6), files this Motion to Dismiss Plaintiffs Amended Complaint and Alternative Motion
to Compel Appraisal and as grounds therefor states:
1. Plaintiff has filed an Amended Complaint arising from damage to her home on
October 10, 2018. On that date, Plaintiff was insured by Castle Key Indemnity Company under
a homeowners policy. Complaint §f 8-9. See Exhibit “A”.
2. Following report of the claim, Castle Key Indemnity Company prepared a repair
estimate in the amount of $80,075.80. See Exhibit “B”. In contrast, Plaintiff contends an
amount in excess of $30,000.00 remains to be paid on the claim. See Complaint Exhibit “A”.
3. Because the parties failed to agree on the amount of loss with respect to the claim,
Castle Key Indemnity Company demanded appraisal of the claim pursuant to the following
provision in the insurance policy:Appraisal
If you and we fail to agree on the amount of loss, either
party may make written demand for an appraisal. Upon
such demand, each party must select a competent and
impartial appraiser and notify the other of the appraiser’s
identity within 20 days after the demand is received. The
appraisers will select a competent and impartial umpire. If
the appraisers are unable to agree upon an umpire within 15
days, you or we can ask a judge of a court of record in the
state where the residence premises is located to select an
umpire.
The appraisers shall then determine the amount of loss,
stating separately the actual cash value and amount of loss
to each item. If the appraisers submit a written report of an
agreement to you and to us, the amount agreed upon shall
be the amount of loss. If they cannot agree, they will
submit their differences to the umpire. A written award
agreed upon by any two will determine the amount of loss.
Each party will pay the appraiser it chooses, and equally
bear expenses for the umpire and all other appraisal
expenses.
A copy of the demand for appraisal is attached hereto and there has been no waiver of the right
to appraisal. See Exhibit “C”.
4. In light of Castle Key Indemnity Company’s written demand for appraisal under
the insurance policy, the Complaint should be dismissed. Alternatively, Plaintiffs action should
be abated so that the claim can be resolved through the appraisal process. See Johnson v.
Nationwide Mut. Ins. Co., 828 So. 2d 1021 (Fla. 2002); Kendall Lakes Townhomes Developers,
Inc. v. Agricultural Excess Surplus Lines Ins. Co., 916 So. 2d 12 (Fla. 3d DCA 2005; Florida
Ins. Guaranty Ass’n. v. Branco, 148 So. 3d 488 (Fla. 5" DCA 2014); Gonzalez v State Farm Fire
and Casulaty Co., 805 So. 2d 814 (Fla. 3d DCA 2000); Preferred Mutual Ins. Co. v. Martinez,
643 So. 2d 1101 (Fla. 3d DCA 1994); Goldman v. USAA, 244 So.3d 310 (Fla. 4 DCA 2018).WHEREFORE, Defendant, Castle Key Indemnity Company, respectfully requests that
this Court enter an order dismissing Plaintiffs Complaint. In the alternative, it is requested that
this Court compel appraisal and abate Plaintiffs action in light of the appraisal invoked by
Castle Key Indemnity Company under the insurance policy.
CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true copy of the foregoing has been furnished by e-mail to
the following, this 9" day of April, 2020:
MARIA E. CORREDOR, ESQUIRE
JOSE C. LEON, ESQUIRE
CORREDOR & HUSSEINI, P.A.
3905 N.W. 107" Avenue, Suite 502
Doral, FL 33178
Telephone: 305-670-1880
Facsimile: 305-670-1985
Email: jleon@chslaw.net
Email: service@corredorhusseinilaw.com
(Counsel for Plaintiff)
s/Darryl L. Gavin
DARRYL L. GAVIN
Florida Bar No.: 0705195
E-mail: dgavin@rumberger.com (primary)
docketingorlando@rumberger.com and
dgavinsecy@rumberger.com (secondary)
RUMBERGER, KIRK, & CALDWELL, P.A.
300 South Orange Avenue
Suite 1400
Orlando, Florida 32801
Tel: 407.872.7300
Fax: 407.841.2133
Attorneys for Defendant
13389310.v1EXHIBIT
A
TI91750.V1Claim#t_0520694167.
To Whom It May Concern:
1, Olivia Leach , employee of Allstate Insurance Company, do certify that the
enclosed is a Copy of Castle Key policy and or declaration page for the above claim
number, showing the coverages that were on the policy at the time of loss of
_1o/10/2018 __. The enclosed copy of policy and or declaration page was printed and
mailed through Allstate's Output Processing Center.
Claim Support
State of Texas, County of Dallas
On this 24th day of May , 2019 before me
personally appeared d Vy VEL 2 WM _ to me known to be the person who
executed the foregoing instrument and acknowledged that she/he executed the same
as a free act and deed.
PATRICIA TORRES
Notary Public, State of Texas
Comm. Expires 10-31-2021
Notary 10 129611687
SFH Castle Key:
INDEMNITY COMPANY
Information as of July 2, 2018
Baytown Agency Policyholder(s) Page 1 of 2
1617 Lisenby . .
Panama City Fl 32405-3711 Margarita Vencius-Redd
Policy number
Your Castle Key agency is
Baytown Agency
Ley LN ete eget TMA AP (850) 784-3903
DHORNKOHL@allstate.com
MARGARITA VENCIUS-REDD
1500 W 12TH ST
PANAMA CITY FL 32401-1844
Thank You for Being a Loyal Castle Key Customer—We're Happy to Have
You with Us!
Here’s your Castle Key* Broad insurance renewal offer for the next 12 months. I've also included a guide to
what's in this package and answers to some common questions.
Renewing your policy is easy
Keep an eye out for your bill, which should arrive in a couple of weeks. Just send your payment by the due date
‘on your bill.
If you're enrolled in the Castle Key Easy Pay Plan, you won't receive a bill—we'll send you a statement with your
payment withdrawal schedule.
You also won't receive a bill if a mortgage company or lienholder pays your insurance premium for you.
How to contact us
Give me a call at (850) 784-3903 if you have any questions.
* Please note that, while the assets and liabilities of the Castle Key companies are separate and distinct from other
companies within the Allstate group, Allstate Insurance Company provides some customer services for the Castle Key
companies.
Sincerely,
Baytown Agency
Your Castle Key Agent
RP623-1641795 973
August 28, 2018
Policy number:
Policy effective date:
Your Insurance Coverage Checklist
Page 2 of 2
We're happy to have you as an Castle Key customer! This checklist outlines what's in this package and provides answers to
some basic questions, as well as any “next steps” you may need to take.
O What's in this package?
See the guide below for the documents that are included.
Next steps: review your Policy Declarations to confirm you
have the coverages, coverage limits, premiums and
savings that you requested and expected. Read any
Endorsements or Important Notices to learn about new
policy changes, topics of special interest, as well as
required communications. Keep all of these documents
with your other important insurance papers.
OO Am| getting all the discounts | should?
Confirm with your Castle Key Agent that you're benefiting
from all the discounts you're eligible to receive.
A guide to your renewal package
O What about my bill?
Unless you've already paid your premium in full, we'll send
your bill separately. Next steps: please pay the minimum
amount by the due date listed on it.
You can also pay your bill online at allstate.com or by
calling 1-800-856-2518 or (1-800-255-7828). Para
espajiol, llamar al 1-800-979-4285. If you're enrolled in
the Castle Key Easy Pay Plan, we'll send you a statement
detailing your payment withdrawal schedule.
What if I have questions?
You can either contact your Castle Key Agent or call us
24/7 at 1-800-856-2518 or (1-800-255-7828) - para
espajiol, llamar al 1-800-979-4285 - with questions about
your coverage, or to update your coverages, limits, or
deductibles. Or visit us online at allstate.com.
Policy Policy Important
Declarations* Endorsements _Notices
The Policy If changes are We use these
Declarations made to your notices to call
lists policy policy, these attention to
details, suchas documents will particularly
your property include your new important
details and contract coverages, policy
coverages. language. changes and
discounts.
*To make it easier to see where you may have gaps in your protection, we've highlighted any coverages you do not have in the
Coverage Detail section in the enclosed Policy Declarations.
NODOOOSKO1685085FL000180703233651001076001022014938
085070 009
180703SKO1685Castle Key:
INDEMNITY COMPANY
Renewal Homeowners Policy Broad
Declarations
Your policy effective date is August 28, 2018
Page lof 4
Information as of July 2, 2018
THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE gunmary
FOR HURRICANE LOSSES, WHICH MAYRESULTIN§ = scaancac
HIGH OUT-OF-POCKET EXPENSES TO YOU. Margarita Venclus-Redd
Mailing address
1500 W 12th St
LAW AND ORDINANCE COVERAGE IS AN IMPORTANT Panama city FL 32401-1844
COVERAGE THAT YOU MAY WISH TO PURCHASE.
YOU MAY ALSO NEED TO CONSIDER THE PURCHASE your poticy provided by
OF FLOOD INSURANCE FROM THE NATIONAL FLOOD = “*5t'¢ Key !ndemnity Company
Policy period
INSURANCE PROGRAM. WITHOUT THIS COVERAGE, Begins on August 28, 2018 at 12:01 A.M.
standard time, with no fixed date of
YOU MAY HAVE UNCOVERED LOSSES. PLEASE expiration
DISCUSS THESE COVERAGES WITH YOUR INSURANCE = "remium period
Beginning August 28, 2018 through
AGENT. August 28, 2019 at 12:01 A.M. standard
time
YOUR POLICY PROVIDES COVERAGE FOR A Baytoun Agency gency is
CATASTROPHIC GROUND COVER COLLAPSE THAT per’ Lisenby
Panama City FL 32405-3711
RESULTS IN THE PROPERTY BEING CONDEMNED AND = {3907543003
UNINHABITABLE. OTHERWISE, YOUR POLICY DOES tie intormationon your
NOT PROVIDE COVERAGE FOR SINKHOLE LOSSES. Policy Declarations is used in the rating
YOU MAY PURCHASE ADDITIONAL COVERAGE FOR —SiZwsithytenccrtasnenncrince please
SINKHOLE LOSSES FOR AN ADDITIONAL PREMIUM, —f°ti'¥ us immediately if you believe
that any information on your Policy
(Ed. Date 11 /08) Declarations is incorrect. We will make
corrections once you have notified us,
and any resulting rate adjustments, will
be made only for the current policy
Total Premium for the Premium Period (Your bill will be mailed separately) . " .
period or for future policy periods.
Premium for property insured $1,687.00 Please also notify us immediately if you
01/2007 Florida Hurricane Catastrophe Fund Emergency $0.00 believe any coverages are not listed or
Assessment are inaccurately listed.
$1,689.00
(continued)
FLO7ORBDRenewal Homeowners Policy Broad Declarations
Policy number: 641795 973
Policy effective date: August 28, 2018
Total Premium for the Premium Period (continued)
Your bill will be mailed separately. Before making a payment, please refer to your
Jatest bill, which includes payment options and installment fee information. If you do
not pay in full, you will be charged an installment fee(s). If you do not pay your bill by
the due date shown on your billing statement, you may be charged a late fee.
See the Important Payment and Coverage Information section for details about
installment fees.
The total premium includes a $1,045.00 hurricane premium.
The total premium includes a $642.00 non-hurricane premium.
The total premium includes a $2.00 EMPA trust fund surcharge.
The total premium includes a windstorm loss mitigation discount.
The total premium includes a $172.00 increase due to rate change.
The total premium includes a $36.00 increase due to coverage changes.
Other Premium Changes such as those caused by changes in discount, changes in
surcharges, etc. resulted in a change of -$7.00.
Discounts (included in your total premium)
Windstorm Mitigation 18% Home and Auto 7%
Location of property insured
1500 W 12th St, Panama City, FL 32401-1844
Rating Information
The dwelling is of brick construction and is occupied by 1 family
Your dwelling is 2 miles to the fire department
Hurricane Premium adjusted 0% and Non-Hurricane Premium adjusted 0% for
Building Code Effectiveness Grading Adjustments range from 1% surcharge to 11%
discount.
Mortgagee
None
Additional Interested Party
None
Page 2 of 4
FLO7ORBD
TIOOOOOSKO1685085FL000180703233651001076002022014938
085070 009
180703SKO1685Renewal Homeowners Policy Broad Declarations
Policy number: 641795 973
Policy effective date: August 28, 2018
FH Castle Key:
INDEMNITY COMPANY
Page 30f 4
Coverage detail for the property insured
Coverage Limits of Liability Applicable Deductible(s)
Dwelling Protection - with Building $135,000 * Other Peril Deductible Applies**
Structure Replacement Cost Method « Deductible for Hurricane Applies***
Extended Limits
Other Structures Protection $2,700 * Other Peril Deductible Applies**
« Deductible for Hurricane Applies***
Personal Property Protection - $67,500 * Other Peril Deductible Applies**
Replacement Cost Method Provision = Deductible for Hurricane Applies***
Additional Living Expense Lesser of $13,500 or 12 months
$100,000 each occurrence
$1,000 each person
25% of the Limit of Liability of Dwelling
Protection
Family Liability Protection
Guest Medical Protection
Building Codes (Law and Ordinance
Coverage)
» Other Coverages Not Purchased:
= Business Property Protection*
* Business Pursuits*
* Cellular Communication System*
* Electronic Data Processing
Equipment*
« Extended Coverage on Cameras*
« Extended Coverage on Jewelry,
Watches and Furs*
« Extended Coverage on Musical
Instruments*
« Extended Coverage on Sports
Equipment*
« Fire Department Charges*
* Golf Cart*
« Home Day Care*
* Incidental Office, Private
*« Increased Coverage on Money*
« Increased Coverage on Securities*
« Increased Silverware Theft Limit*
« Lock Replacement*
« Loss Assessments”
* Optional Protection for Mold*
* Satellite Dish Antennas*
* Sinkhole Activity*
School Or Studio”
* This coverage can provide you with valuable protection, To help you stay current with
your insurance needs, contact your agent to discuss available coverage options and
other products and services that can help protect you.
** $2,500 is your Other Peril Deductible, which applies to the total of all losses under the coverages indicated above.
***$6,750 (calculated by applying 5% to your Dwelling Protection limit) is
your Deductible for Hurricanes, which applies to the total of all losses under
the coverages indicated above. The Hurricane Deductible applicable at the
time of loss may be higher or lower than the deductible listed above. Please
read your Hurricane Deductible Endorsement carefully.
Scheduled Personal Property Coverage
Your policy does not include Scheduled Personal Property Coverage. This coverage can provide you with valuable protection. To
help you stay current with your insurance needs, contact your agent to discuss available coverage options and other products and
services that can help protect you.
FLO7ORBDRenewal Homeowners Policy Broad Declarations Page 4 of 4
Policy number: 641795 973
Policy effective date: August 28, 2018
Your policy documents
Your Homeowners policy consists of the Policy Declarations and the following documents. Please keep them together.
« Homeowners Policy Broad - AP4688 « Amendatory Endorsement - AP4589
*« Florida Hurricane Deductible Endorsement - AP865-1 *« Florida Homeowners Policy Broad Amendatory Endorsement -
AP4763-1
Important payment and coverage information
Here is some additional, helpful information related to your coverage and paying your bill:
>» A $10.00 late fee may be assessed if payment is received after the due date.
> Coverage A - Dwelling Protection includes an approximate increase of $4,000 due to the Property Insurance Adjustment
provision using the Marshall Swift Boeckh Publications Building Cost Index. Coverage C - Personal Property Protection
adjusted accordingly.
» Please note: This is not a request for payment. Your bill will be mailed separately.
> If you decide to pay your premium in installments, there will be a $3.00 installment fee charge for each payment due. If you
make 12 installment payments during the policy period, and do not change your payment plan method, then the total
amount of installment fees during the policy period will be $36.00.
If you are on the Castle Key Easy Pay Plan, there will be a $1.50 installment fee charge for each payment due. If you make 12
installment payments during the policy period, and remain on the Castle Key Easy Pay Plan, then the total amount of
installment fees during the policy period will be $18.00.
If you change payment plan methods or make additional payments, your installment fee charge for each payment due and
the total amount of installment fees during the policy period may change or even increase.
Please note that the Castle Key Easy Pay Plan allows you to have your insurance payments automatically deducted from
your checking or savings account.
> If You Have a Question About Your Insurance...
If you wish to present an inquiry or obtain information about coverage, or if you need assistance in resolving a complaint,
please call (850) 784-3903.
HALE. Shoal Gyaw Kk Kove
Michael S. Sheely Susan L. Lees
President Secretary
IN WITNESS WHEREOF, Castle Key Indemnity Company has caused this policy to be signed by two of its officers at Northbrook,
Illinois, and if required by state law, this policy shall not be binding unless countersigned on the Policy Declarations by an
authorized agent of Castle Key Indemnity Company.
Policy countersigned by Baytown Agency
FLO7ORBD
TIO0OOOSKO1685085FL000180703233651001076003022014938
085070 009
180703SKO1685Policy Endorsement
Policy number:
Policy effective date:
641795 973
August 28, 2018
The following endorsement changes your policy.
Please read this document carefully and keep it with your policy.
Florida Homeowners Policy Broad Amendatory
Endorsement - AP4763-1
|. Inthe General section, the following changes are made:
A. The following changes are made under Definitions Used In This
Policy:
1
2
The definition of item 4, bodily injury, is replaced by the
following:
4. Bodily injury means physical harm to the body, including
sickness or disease, and resulting death, or any resulting
symptom, effect, condition, disease or illness. Bodily
injury does not include any of the following which are
communicable: disease, bacteria, parasite, virus or other
organism, any of which are transmitted by any insured
person to any other person. It also does not include the
exposure to any such disease, bacteria, parasite, virus or
other organism by any insured person to any other
person.
In addition, bodily injury does not include any symptom,
effect, condition, disease or illness resulting in any manner
from:
a) _ lead in any form;
b) asbestos in any form;
c) radon in any form; or
d) oil, fuel oil, kerosene, liquid propane or gasoline
intended for, or from, a storage tank located at the
residence premises.
Under Guest Medical Protection-Coverage Y, bodily
injury means physical harm to the body, including
sickness or disease. Bodily injury does not include any of
‘the following which are communicable: disease, bacteria,
parasite, virus or other organism, any of which are
transmitted by any insured person to any other person. It
also does not include the exposure to any such disease,
bacteria, parasite, virus or other organism by any insured
person to any other person.
The definition of item 13, sinkhole activity, is replaced by the
following:
1B. Sinkhole activity means settlement or systematic
weakening of the earth supporting the dwelling we cover
under Dwelling Protection-Coverage A that you reside
in as your primary residence, but only if the settlement or
systematic weakening results from contemporaneous
Page 1 of 12 ss | Castle Key:
INDEMNITY COMPANY
movement or raveling of soils, sediments, or rock
materials into subterranean voids created by the effect of
water on a limestone or similar rock formation.
We do not cover catastrophic ground cover collapse
under Sinkhole Activity Coverage.
The definition of item 14, catastrophic ground cover collapse,
is replaced by the following:
14. Catastrophic ground cover collapse means geological
activity that results in all the following:
a) _ the abrupt collapse of the ground cover;
b) adepression in the ground cover clearly visible to
the naked eye;
c) _ structural damage to the dwelling, or the dwelling
foundation, that we cover under Dwelling
Protection-Coverage A; and
d) that dwelling being condemned and ordered to be
vacated by the governmental agency authorized by
law to issue such an order for that dwelling.
Catastrophic ground cover collapse does not include
damage consisting merely of settling or cracking of a
foundation, structure or dwelling that we cover under
Dwelling Protection-Coverage A.
4. — The following definitions are added:
Sinkhole loss means structural damage to the dwelling,
or the dwelling foundation, that we cover under Dwelling
Protection-Coverage A, caused by sinkhole activity.
Coverage for personal property covered under Personal
Property Protection-Coverage C and additional living
expenses will apply only if there is structural damage to
the dwelling, or the dwelling foundation, that we cover
under Dwelling Protection-Coverage A, caused by
sinkhole activity.
Structural damage means the dwelling that we cover
under Dwelling Protection-Coverage A, 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 represents 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 membersPolicy endorsement
Policy number:
Policy effective date:
20.
641795 973
August 28, 2018
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 exceeds 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 in the Florida Building Code;
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 within the
sheer plane necessary for the purpose of supporting
such building as defined in 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.
Primary structural member means a structural element
designed to provide support and stability for the vertical
or lateral loads of the overall structure.
Primary structural system means an assemblage of
primary structural members.
Hurricane means wind, wind gusts, hail, rain, tornadoes,
or cyclones caused by or resulting from a storm system
declared by the National Hurricane Center of the National
Weather Service to be a hurricane. The duration of the
hurricane includes the time period, in Florida:
a) _ beginning at the time a hurricane watch or hurricane
warning is issued for any part of Florida by the
National Hurricane Center of the National Weather
Service;
b) continuing for the time period during which
hurricane conditions exist anywhere in Florida; and
©) _ ending 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.
Rebate means a remuneration, payment, gift, discount, or
transfer of any item of value to you by or on behalf of a
Page 2 of 12
person performing repairs as an incentive or inducement
to obtain repairs performed by that person.
The Cancellation provision is replaced by the following:
Cancellation
Your Right to Cancel:
You may cancel this policy by notifying us of the future date you
wish to stop coverage.
Our Right to Cancel:
We may cancel this policy by mailing notice to you at the mailing
address shown on the Policy Declarations. When this policy has been
in effect for 90 days or less, and it is not a renewal with us, we may
cancel this policy for any reason. If the cancellation is for
non-payment of premium, we will give you at least 10 days’ notice, If
the cancellation is for any other reason, we will give you at least
20 days’ notice.
When this policy has been in effect for 90 days or less, we may
cancel for any reason, except we may not cancel:
1. onthe basis of property insurance claims that are the result of
an Act of God, unless we can demonstrate, by claims frequency
or otherwise, that you have failed to take action reasonably
necessary as requested by us to prevent recurrences of damage
to the insured property.
2. _ onthe basis of a single claim on a property insurance policy
which is the result of water damage unless we can demonstrate
you have failed to take action reasonably requested by us to
prevent a future similar occurrence of damage to the insured
property.
We will not cancel this policy based on the lawful use, possession, or
ownership of a firearm or ammunition by an insured person or
household member of an insured person.
When this policy has been in effect for more than 90 days, or if it is a
renewal with us, we may cancel this policy for one or more of the
following reasons:
1. non-payment of premium;
a substantial change in the risk covered by the policy;
material misstatement; or
failure to comply, within 90 days after the date of effectuation
of coverage, with underwriting requirements established by us
before the date of effectuation of coverage.
RwN
When this policy has been in effect for more than 90 days, or if itis a
renewal with us, we will not cancel this policy based on credit
information available in public records.
We will not cancel this policy based on the lawful use, possession, or
ownership of a firearm or ammunition by an insured person or a
household member of an insured person.
MO0OOOSKO1685085FLO00180703233651001076004022014938
085070 009
180703SKO1685Policy endorsement
Policy number:
Policy effective date:
641795 973
August 28, 2018
Page 3 of 12 ss | Castle Key:
INDEMNITY COMPANY
If the cancellation is for non-payment of premium, we will give you
at least 10 days’ notice. If the cancellation is for any other reason, we
will give you at least 120 days’ notice.
If the cancellation is for non-payment of premium by your mortgage
lender and the premium payment made is not more than 90 days
overdue, we shall reinstate the insurance policy, retroactive to the
date of cancellation.
Our mailing the notice of cancellation to you will be deemed proof of
notice. Coverage under this policy will terminate on the effective date
and time stated on the cancellation notice. Your return premium, if
any, will be calculated on a pro rata basis and refunded at the time of
cancellation or within 15 working days after the effective date of
cancellation. Any unearned premium amounts under $5.00 will be
refunded only upon your request. However, refund of unearned
premium is not a condition of cancellation.
Our Right Not to Renew or Continue:
We have the right not to renew or continue this policy beyond the
current premium period, If we do not intend to continue or renew the
policy, we will give you at least 120 days’ notice. Our mailing the
notice of non-renewal to you will be deemed proof of notice.
We may non-renew or discontinue this policy for any reason, except:
1. onthe basis of property insurance claims that are the result of
This policy is void if it was obtained by misrepresentation, fraud or
concealment of material facts. If it is determined that this policy is
void, all premium paid will be returned to you since there has been
no coverage under this policy.
We do not cover any loss or occurrence in which any insured
person has concealed or misrepresented any material fact or
circumstance.
If this policy has been in effect for more than 90 days, or if it is a
renewal with us, a claim filed by an insured person will not be
denied based on credit information available in public records.
D. The following provision is added:
Notice
Ifa company employee adjuster, independent adjuster, attorney,
investigator, or other person acting on our behalf needs access to an
insured person or claimant or to the insured premises that is the
subject of a claim, that person must provide at least 48 hours’ notice
to the insured person or claimant, public adjuster, or legal
representative before scheduling a meeting with the claimant or an
onsite inspection of the insured premises. The insured person or
claimant may deny access to the insured premises if notice has not
been provided. The insured person or claimant may waive the
48-hour notice.
an Act of God, unless we can demonstrate, by claims frequency
or otherwise, that you have failed to take action reasonably
necessary as requested by us to prevent recurrences of damage
Il. In Section |—Your Property, the following changes are made:
A. Under Losses We Do Not Cover Under Coverages A And B, the
to the insured property.
2. _ onthe basis of filing of claims for sinkhole loss, unless:
a) the total of such claim payments equals or exceeds the
limit of liability for property damage to the dwelling we
cover under Dwelling Protection-Coverage A in effect
on the date of the loss; or
b) you failed to repair the dwelling we cover under
Dwelling Protection-Coverage A in accordance with the
engineering recommendations upon which claim payment
was based.
3. on the basis of a single claim on a property insurance policy
which is the result of water damage unless we can demonstrate
you have failed to take action reasonably requested by us to
prevent a future similar occurrence of damage to the insured
property.
4. — onthe basis of the lawful use, possession, or ownership of a
firearm or ammunition by an insured person or a household
member of an insured person.
5. _ onthe basis of credit information available in public records.
The Concealment Or Fraud provision is replaced by the following:
following changes have been made:
1. Items 4, 5, 9, 16, 23 and 24 are replaced by the following:
4, Water or any other substance on or below the surface of
the ground, regardless of its source. This includes water or
any other substance which exerts pressure on, or flows,
seeps or leaks through any part of the residence
premises. Except as otherwise excluded under items 1
through 3 above, this exclusion does not apply to the
sudden and accidental discharge of water.
5. _ Earth movement of any type, including, but not limited to,
earthquake, volcanic eruption, lava flow, landslide,
subsidence, mudflow, pressure, sinkhole, erosion or the
sinking, rising, shifting, creeping, expanding, bulging,
cracking, settling or contracting of the earth. This
exclusion applies whether or not the earth movement is
combined with water.
However, we will not apply this exclusion to sudden and
accidental direct physical loss to the dwelling which
consists of, or is caused by:
a) catastrophic ground cover collapse; orPolicy endorsement
Policy number:
Policy effective date:
23.
641795 973
August 28, 2018
b) sinkhole activity covered under Sinkhole Activity
Coverage, if Sinkhole Activity Coverage is shown
on the Policy Declarations.
We do not cover loss caused by catastrophic ground
cover collapse or sinkhole activity under Other
Structures Protection-Coverage B.
We do cover sudden and accidental direct physical loss
caused by fire, explosion, theft or breakage of glass or
safety glazing materials resulting from earth movement.
Intentional or criminal acts of, or at the direction of any
insured person, if the loss that occurs:
a) may be reasonably expected to result from such acts;
or
b) _ is the intended result of such acts.
This exclusion applies regardless of whether or not the
insured person is actually charged with, or convicted of a
crime. The application of this exclusion will not be based
solely on an arrest or the issuance of a citation.
Freezing of plumbing, fire protective sprinkler systems,
heating or air conditioning systems or household
appliances, or discharge, leakage or overflow from within
the systems or appliances caused by freezing, while the
building structure is vacant or being constructed unless
you have used reasonable care to:
a) maintain heat in the building structure; or
b) _ shut off the water supply and drain the system and
appliances.
This exclusion applies only to:
a) _ lossin excess of $50,000 to pool enclosures,
carports, Florida rooms, sun rooms and patio
enclosures that have any aluminum supporting
frames or studs. Loss in excess of $50,000 is
excluded regardless of the number of pool
enclosures, carports, Florida rooms, sun rooms and
patio enclosures involved in the loss. This exclusion
applies whether or not the pool enclosure, carport,
Florida room, sun room or patio enclosure is fastened
or attached to, or a part of, a building structure;
b) _ loss to screens for pool enclosures, carports, Florida
rooms, sun rooms or patio enclosures that have any
aluminum supporting frames or studs;
c) _ loss to fences, whether or not fastened or attached
to, or a part of, a building structure; and
24,
Page 4 of 12
d) _ loss to above ground outdoor pools, awnings and
outdoor antennas, whether or not fastened or
attached to a building structure.
We do not cover loss to covered property described in
Dwelling Protection-Coverage A or Other Structures
Protection-Coverage B when:
a) _ there are two or more causes of loss to the covered
property; and
b) the predominant cause(s) of loss is (are) excluded
under Losses We Do Not Cover, items 1 through 23
above.
However, any sudden and accidental loss to property
described in Dwelling Protection-Coverage A or Other
Structures Protection-Coverage B that follows items 1
through 23 is covered, unless excluded by this policy.
2. The following item is added:
25.
Mold, fungus, wet rot, dry rot or bacteria. This includes
any loss which, in whole or in part, arises out of, is
aggravated by or results from mold, fungus, wet rot, dry
rot or bacteria.
This exclusion applies regardless of whether mold, fungus,
wet rot, dry rot or bacteria arises from any other cause of
loss, including, but not limited to, a loss involving water,
water damage or discharge, which may otherwise be
covered by this policy, except as specifically provided in
Section | Conditions, Mold, Fungus, Wet Rot And Dry
Rot Remediation As A Direct Result Of A Covered
Water Loss.
B. Under Losses We Cover Under Coverage C, the following changes
are made:
1. Item 2 is replaced by the following:
2.
Windstorm or hail.
‘We do not cover:
a) _ loss to personal property inside a building structure
caused by rain, snow, sleet, sand or dust unless the
wind or hail first damages the roof or walls and rain,
snow, sleet, sand or dust enters through the
damaged roof or wall;
b) _ loss to watercraft and their trailers, furnishings,
equipment and motors unless inside a fully enclosed
building structure. However, we do cover canoes
and rowboats on the residence premises; or
©) _ loss to personal property not inside a building
structure, caused by hurricane.
M1O0000SK01685085FLO00180703233651001076005022014938
085070 009
180703SKO1685Policy endorsement
Policy number:
Policy effective date:
641795 973
August 28, 2018
The paragraph after item 14 is replaced by the following:
We do not cover loss at the residence premises under perils
12, 13 and 14 caused by or resulting from freezing while the
building structure is vacant or under construction unless you
have used reasonable care to:
a) maintain heat in the building structure; or
b) shut off the water supply and drain the water from the
systems and appliances.
Item 17 is replaced by the following:
17. Sinkhole activity, but only if Sinkhole Activity
Coverage is shown on the Policy Declarations.
We do not cover losses caused by sinkhole activity under
Personal Property Protection-Coverage C unless the
sinkhole activity causes structural damage to the
dwelling, or the dwelling foundation, that we cover
under Dwelling Protection-Coverage A.
C. Under Losses We Do Not Cover Under Coverage C, items 4, 5 and
9 are replaced by the following:
4.
Water or any other substance on or below the surface of the
ground, regardless of its source. This includes water or any
other substance which exerts pressure on, or flows, seeps or
leaks through any part of the residence premises. Except as
otherwise excluded under items 1 through 3 above, this
exclusion does not apply to the sudden and accidental
discharge of water.
Earth movement of any type, including, but not limited to,
earthquake, volcanic eruption, lava flow, landslide, subsidence,
mudflow, pressure, sinkhole, erosion or the sinking, rising,
shifting, creeping, expanding, bulging, cracking, settling or
contracting of the earth. This exclusion applies whether or not
the earth movement is combined with water.
However, we will not apply this exclusion to sudden and
accidental direct physical loss which consists of, or is caused by:
a) catastrophic ground cover collapse; or
b) _ sinkhole activity covered under Sinkhole Activity
Coverage, if Sinkhole Activity Coverage is shown on
the Policy Declarations.
We do not cover loss caused by catastrophic ground cover
collapse or sinkhole activity under Personal Property
Protection-Coverage C unless the catastrophic ground
cover collapse or sinkhole activity causes structural damage
to the dwelling, or the dwelling foundation, that we cover
under Dwelling Protection-Coverage A.
Page 5 of 12 ss | Castle Key:
INDEMNITY COMPANY
We do cover sudden and accidental direct physical loss caused
by fire, explosion, theft or breakage of glass or safety glazing
materials resulting from earth movement.
9. Intentional or criminal acts of or at the direction of any insured
person, if the loss that occurs:
a) may be reasonably expected to result from such acts; or
b) _ is the intended result of such acts.
This exclusion applies regardless of whether or not the insured
person is actually charged with or convicted of a crime. The
application of this exclusion will not be based solely on an
arrest or the issuance of a citation.
In Section I, Additional Protection, the following changes are
made:
1. Under item 1, Additional Living Expense, sub-item b) is
replaced by the following:
b) Except as indicated below, we will pay your lost fair
rental income resulting from a covered loss under
Dwelling Protection-Coverage A, Other Structures
Protection-Coverage B or Personal Property
Protection-Coverage C, less charges and expenses which
do not continue, when a loss we cover under Dwelling
Protection-Coverage A, Other Structures
Protection-Coverage B or Personal Property
Protection-Coverage C makes the part of the residence
premises you rent to others, or hold for rental,
uninhabitable. We will pay for lost fair rental income for
the shortest time required to repair or replace the part
rented or held for rental, but not to exceed 12 months or
10% of the limit of liability as shown on the Policy
Declarations for Dwelling Protection-Coverage A.
However, payments for your lost fair rental income
expense due to remediation of mold, fungus, wet rot or
dry rot will not be paid in addition to any amounts paid or
payable under Section | Conditions, Mold, Fungus, Wet
Rot And Dry Rot Remediation As A Direct Result Of A
Covered Water Loss.
This fair rental income coverage does not apply to lost fair
rental income resulting from a loss caused by hurricane.
2. Item 6, Temporary Repairs After a Loss, is replaced by the
following:
6. Reasonable Emergency Measures
a) Weill pay up to the greater of $3000 or one
percent of the limit of liability shown on the Policy
Declarations for Dwelling Protection-Coverage A
for the reasonable and necessary costs incurred by
you for measures taken solely to protect covered
cePolicy endorsement
Policy number:
Policy effective date:
b)
°
d)
641795 973
August 28, 2018
property from further covered loss following a loss
we cover.
We will not pay more than the amount in 6a) above,
unless we agree within 48 hours of your request to
us to exceed that limit. If we agree to exceed that
limit, we will pay only up to the additional amount
for the measures we authorize. If we fail to respond
to you within 48 hours of your request to us to
exceed that limit, and the damage or loss is caused
by a peril insured against, you may exceed the limit
indicated in 6a) above only up to the cost incurred
by you for the reasonable and necessary emergency
measures necessary to protect the covered property
from further covered loss.
If however a covered loss occurs during a hurricane
the amount we pay under this additional protection
is not limited to the amount in 6.a) above.
A reasonable measure under this provision may
include a permanent repair when necessary to
protect the covered property from further damage
or to prevent unwanted entry to the property. To the
degree reasonably possible, any damaged property
must be retained by you for our inspection.
This protection does not increase the limit of liability
applying to the covered property,
3. Item 10, Building Codes, is replaced by the following:
10. Building Codes
The limit of liability for Building Codes coverage is shown
‘on your Policy Declarations as a percentage of the limit of
liability for Dwelling Protection-Coverage A. We will
pay up to the limit of liability for Building Codes
coverage to comply with applicable laws regulating the
construction, reconstruction, maintenance, replacement,
repair, placement or demolition of any property after a
covered loss to covered building structures and when
the construction, reconstruction, maintenance,
replacement, repair, placement or demolition results in
increased costs due to the enforcement of these laws.
Such coverage shall include the removing of debris and
shall apply only to repairs of the damaged portion of the
covered building structure, unless the total damage to
the covered building structure exceeds 50% of the
replacement cost of the covered building structure. The
amount of insurance provided by this coverage is a
separate limit of liability, and is the maximum we will pay
for any one loss.
Page 6 of 12
This Building Codes coverage does not apply to loss to
pool enclosures, carports, Florida rooms, sun rooms and
patio enclosures that have any aluminum supporting
frames or studs, when the loss is caused by hurricane.
E. In Section |—Conditions, the following changes are made:
1. Under item 3, What You Must Do After A Loss, sub-item a) is
replaced by the following:
a)
b)
promptly give us or our agent notice, Report any theft to
the police as soon as possible.
?
2d
3)
4)
If the loss was caused by sinkhole activity, you
must notify us of any resulting claim, supplemental
claim or reopened claim within two years after you
knew or reasonably should have known about the
sinkhole loss.
If the loss was caused by windstorm or hurricane,
you must notify us of any resulting claim,
supplemental claim or reopened claim within three
years after the hurricane first made landfall or the
windstorm caused the damage.
If the loss was not a result of sinkhole, hurricane or
is not a reasonable emergency measure taken under
Reasonable Emergency Measures, there is no
coverage for permanent repairs that begin before
the earlier of:
a) 72hours after we are notified of the loss;
b) The time of the loss inspection by us; or
c) The time of other approval by us.
If the loss involves a credit card, charge plate or bank
transfer card, give written notice to the company or
bank that issued the card or plate.
protect the covered property from further damage. The
following must be performed:
dD
2
Take reasonable emergency measures that are
necessary to protect the covered property from
further damage, as provided under the Reasonable
Emergency Measures provision. A reasonable
emergency measure under b) 1) above may include a
permanent repair when necessary to protect the
covered property from further damage or to prevent
unwanted entry to the property. To the degree
reasonably possible, the damaged property must be
retained for us to inspect.
Keep an accurate record of any repair expenses.
2. Under item 3, What You Must Do After A Loss, the following
paragraph is added:
MO0OOOSKO1685085FLO00180703233651001076006022014938
085070 009
180703SKO1685Policy endorsement
Policy number: 641795 973 Page 7 of 12
Policy effective date: August 28, 2018 8
We have no duty to provide coverage under this section if you
fail to comply with items a) through g) above, and this failure to
comply is prejudicial to us.
3. Item 4, How We Pay For A Loss, is revised as follows:
a) The first paragraph of the How We Pay For A Loss
provision is replaced by the following:
Within 90 days after we receive notice of an initial,
reopened, or supplemental claim under Dwelling
Protection-Coverage A, Other Structures
Protection-Coverage B or Personal Property
Protection-Coverage C from you, we shall pay or deny
such claim or a portion of the claim unless the failure to
pay such claim or a portion of the claim is caused by
factors beyond our control which reasonably prevent such
payment, Claims will be paid within 20 days of written
agreement between you and us, except as provided in
subparagraph b)(1) below regarding the payment of
amounts for underpinning or grouting.
b) The Actual Cash Value Method provision is replaced by
the following:
a) Actual Cash Value Method
Except as provided in the Personal Property
Replacement Cost Method provision below, if you
do not repair or replace the damaged, destroyed or
stolen property, payment will be on an actual cash
value basis. This means there may be a deduction for
depreciation. Payment will not exceed the limit of
liability shown on the Policy Declarations for the
coverage that applies to the damaged, destroyed or
stolen property, regardless of the number of items
involved in the loss.
You may make claim for additional payment as
described in paragraph b) below, if applicable, if you
repair or replace the damaged, destroyed or stolen
covered property.
©) The Building Structure Replacement Cost Method
provision is replaced by the following:
b) Building Structure Replacement Cost Method
Except as otherwise provided below, we will make
additional payment to reimburse you for costs in
excess of actual cash value if you repair, rebuild or
replace damaged, destroyed, or stolen covered
property under Dwelling Protection-Coverage A
and Other Structures Protection-Coverage B.
We will make payment as the repair, rebuilding or
FH Castle Key:
INDEMNITY COMPANY
replacement work is performed and expenses are
incurred.
Payment for total loss to property covered under
Dwelling Protection-Coverage A and Other
Structures Protection-Coverage B will be ona
replacement cost basis, meaning that the amount we
pay you for the repair, rebuilding or replacement of
the damaged, destroyed or stolen covered property
will not include a deduction for depreciation.
The following subparagraphs (1) and (2) will apply if
Sinkhole Activity Coverage is shown on your
Policy Declarations:
(1) Inthe event of a covered sinkhole loss,
payment to repair, rebuild or replace the
damaged or destroyed dwelling will be on an
actual cash value basis until you enter into a
contract for the performance of building
stabilization or foundation repairs. Payment on
an actual cash value basis means there may be
a deduction for depreciation. Once you enter
into a contract for the performance of building
stabilization or foundation repairs, we shall pay
the additional amounts necessary to begin and
perform the repairs, rebuilding or replacement
of the damaged or destroyed dwelling, or the
dwelling foundation, as the work is performed
and the expenses are incurred,
Notwithstanding any other provision contained
in this policy, we will not pay any amounts for
underpinning or grouting until you enter into a
contract for the performance of building
stabilization or foundation repairs. The
stabilization and all other repairs to the
structure must be completed within 12 months
after you enter into the contract, unless:
(a) there is a mutual agreement between you
and us;
(b) the claim is involved with the neutral
evaluation process;
(©) the claim is in litigation; or
(d)_ the claim is under appraisal or mediation.
You may not accept a re
Preview
Filing # 106090682 E-Filed 04/09/2020 04:32:26 PM IN THE CIRCUIT COURT OF THE FOURTEENTH JUDICIAL CIRCUIT, IN AND FOR BAY COUNTY, FLORIDA MARGARITA VENCIUS-REDD, Plaintiff, vs. CASE NO.: 19-004413CA CASTLE KEY INDEMNITY COMPANY, Defendant. / DEFENDANT, CASTLE KEY INDEMNITY COMPANY’S MOTION TO DISMISS AMENDED COMPLAINT AND ALTERNATIVE MOTION TO COMPEL APPRAISAL Defendant, Castle Key Indemnity Company, pursuant to Florida Rule of Civil Procedure 1.140(b)(6), files this Motion to Dismiss Plaintiffs Amended Complaint and Alternative Motion to Compel Appraisal and as grounds therefor states: 1. Plaintiff has filed an Amended Complaint arising from damage to her home on October 10, 2018. On that date, Plaintiff was insured by Castle Key Indemnity Company under a homeowners policy. Complaint §f 8-9. See Exhibit “A”. 2. Following report of the claim, Castle Key Indemnity Company prepared a repair estimate in the amount of $80,075.80. See Exhibit “B”. In contrast, Plaintiff contends an amount in excess of $30,000.00 remains to be paid on the claim. See Complaint Exhibit “A”. 3. Because the parties failed to agree on the amount of loss with respect to the claim, Castle Key Indemnity Company demanded appraisal of the claim pursuant to the following provision in the insurance policy:Appraisal If you and we fail to agree on the amount of loss, either party may make written demand for an appraisal. Upon such demand, each party must select a competent and impartial appraiser and notify the other of the appraiser’s identity within 20 days after the demand is received. The appraisers will select a competent and impartial umpire. If the appraisers are unable to agree upon an umpire within 15 days, you or we can ask a judge of a court of record in the state where the residence premises is located to select an umpire. The appraisers shall then determine the amount of loss, stating separately the actual cash value and amount of loss to each item. If the appraisers submit a written report of an agreement to you and to us, the amount agreed upon shall be the amount of loss. If they cannot agree, they will submit their differences to the umpire. A written award agreed upon by any two will determine the amount of loss. Each party will pay the appraiser it chooses, and equally bear expenses for the umpire and all other appraisal expenses. A copy of the demand for appraisal is attached hereto and there has been no waiver of the right to appraisal. See Exhibit “C”. 4. In light of Castle Key Indemnity Company’s written demand for appraisal under the insurance policy, the Complaint should be dismissed. Alternatively, Plaintiffs action should be abated so that the claim can be resolved through the appraisal process. See Johnson v. Nationwide Mut. Ins. Co., 828 So. 2d 1021 (Fla. 2002); Kendall Lakes Townhomes Developers, Inc. v. Agricultural Excess Surplus Lines Ins. Co., 916 So. 2d 12 (Fla. 3d DCA 2005; Florida Ins. Guaranty Ass’n. v. Branco, 148 So. 3d 488 (Fla. 5" DCA 2014); Gonzalez v State Farm Fire and Casulaty Co., 805 So. 2d 814 (Fla. 3d DCA 2000); Preferred Mutual Ins. Co. v. Martinez, 643 So. 2d 1101 (Fla. 3d DCA 1994); Goldman v. USAA, 244 So.3d 310 (Fla. 4 DCA 2018).WHEREFORE, Defendant, Castle Key Indemnity Company, respectfully requests that this Court enter an order dismissing Plaintiffs Complaint. In the alternative, it is requested that this Court compel appraisal and abate Plaintiffs action in light of the appraisal invoked by Castle Key Indemnity Company under the insurance policy. CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true copy of the foregoing has been furnished by e-mail to the following, this 9" day of April, 2020: MARIA E. CORREDOR, ESQUIRE JOSE C. LEON, ESQUIRE CORREDOR & HUSSEINI, P.A. 3905 N.W. 107" Avenue, Suite 502 Doral, FL 33178 Telephone: 305-670-1880 Facsimile: 305-670-1985 Email: jleon@chslaw.net Email: service@corredorhusseinilaw.com (Counsel for Plaintiff) s/Darryl L. Gavin DARRYL L. GAVIN Florida Bar No.: 0705195 E-mail: dgavin@rumberger.com (primary) docketingorlando@rumberger.com and dgavinsecy@rumberger.com (secondary) RUMBERGER, KIRK, & CALDWELL, P.A. 300 South Orange Avenue Suite 1400 Orlando, Florida 32801 Tel: 407.872.7300 Fax: 407.841.2133 Attorneys for Defendant 13389310.v1EXHIBIT A TI91750.V1Claim#t_0520694167. To Whom It May Concern: 1, Olivia Leach , employee of Allstate Insurance Company, do certify that the enclosed is a Copy of Castle Key policy and or declaration page for the above claim number, showing the coverages that were on the policy at the time of loss of _1o/10/2018 __. The enclosed copy of policy and or declaration page was printed and mailed through Allstate's Output Processing Center. Claim Support State of Texas, County of Dallas On this 24th day of May , 2019 before me personally appeared d Vy VEL 2 WM _ to me known to be the person who executed the foregoing instrument and acknowledged that she/he executed the same as a free act and deed. PATRICIA TORRES Notary Public, State of Texas Comm. Expires 10-31-2021 Notary 10 129611687 SFH Castle Key: INDEMNITY COMPANY Information as of July 2, 2018 Baytown Agency Policyholder(s) Page 1 of 2 1617 Lisenby . . Panama City Fl 32405-3711 Margarita Vencius-Redd Policy number Your Castle Key agency is Baytown Agency Ley LN ete eget TMA AP (850) 784-3903 DHORNKOHL@allstate.com MARGARITA VENCIUS-REDD 1500 W 12TH ST PANAMA CITY FL 32401-1844 Thank You for Being a Loyal Castle Key Customer—We're Happy to Have You with Us! Here’s your Castle Key* Broad insurance renewal offer for the next 12 months. I've also included a guide to what's in this package and answers to some common questions. Renewing your policy is easy Keep an eye out for your bill, which should arrive in a couple of weeks. Just send your payment by the due date ‘on your bill. If you're enrolled in the Castle Key Easy Pay Plan, you won't receive a bill—we'll send you a statement with your payment withdrawal schedule. You also won't receive a bill if a mortgage company or lienholder pays your insurance premium for you. How to contact us Give me a call at (850) 784-3903 if you have any questions. * Please note that, while the assets and liabilities of the Castle Key companies are separate and distinct from other companies within the Allstate group, Allstate Insurance Company provides some customer services for the Castle Key companies. Sincerely, Baytown Agency Your Castle Key Agent RP623-1641795 973 August 28, 2018 Policy number: Policy effective date: Your Insurance Coverage Checklist Page 2 of 2 We're happy to have you as an Castle Key customer! This checklist outlines what's in this package and provides answers to some basic questions, as well as any “next steps” you may need to take. O What's in this package? See the guide below for the documents that are included. Next steps: review your Policy Declarations to confirm you have the coverages, coverage limits, premiums and savings that you requested and expected. Read any Endorsements or Important Notices to learn about new policy changes, topics of special interest, as well as required communications. Keep all of these documents with your other important insurance papers. OO Am| getting all the discounts | should? Confirm with your Castle Key Agent that you're benefiting from all the discounts you're eligible to receive. A guide to your renewal package O What about my bill? Unless you've already paid your premium in full, we'll send your bill separately. Next steps: please pay the minimum amount by the due date listed on it. You can also pay your bill online at allstate.com or by calling 1-800-856-2518 or (1-800-255-7828). Para espajiol, llamar al 1-800-979-4285. If you're enrolled in the Castle Key Easy Pay Plan, we'll send you a statement detailing your payment withdrawal schedule. What if I have questions? You can either contact your Castle Key Agent or call us 24/7 at 1-800-856-2518 or (1-800-255-7828) - para espajiol, llamar al 1-800-979-4285 - with questions about your coverage, or to update your coverages, limits, or deductibles. Or visit us online at allstate.com. Policy Policy Important Declarations* Endorsements _Notices The Policy If changes are We use these Declarations made to your notices to call lists policy policy, these attention to details, suchas documents will particularly your property include your new important details and contract coverages, policy coverages. language. changes and discounts. *To make it easier to see where you may have gaps in your protection, we've highlighted any coverages you do not have in the Coverage Detail section in the enclosed Policy Declarations. NODOOOSKO1685085FL000180703233651001076001022014938 085070 009 180703SKO1685Castle Key: INDEMNITY COMPANY Renewal Homeowners Policy Broad Declarations Your policy effective date is August 28, 2018 Page lof 4 Information as of July 2, 2018 THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE gunmary FOR HURRICANE LOSSES, WHICH MAYRESULTIN§ = scaancac HIGH OUT-OF-POCKET EXPENSES TO YOU. Margarita Venclus-Redd Mailing address 1500 W 12th St LAW AND ORDINANCE COVERAGE IS AN IMPORTANT Panama city FL 32401-1844 COVERAGE THAT YOU MAY WISH TO PURCHASE. YOU MAY ALSO NEED TO CONSIDER THE PURCHASE your poticy provided by OF FLOOD INSURANCE FROM THE NATIONAL FLOOD = “*5t'¢ Key !ndemnity Company Policy period INSURANCE PROGRAM. WITHOUT THIS COVERAGE, Begins on August 28, 2018 at 12:01 A.M. standard time, with no fixed date of YOU MAY HAVE UNCOVERED LOSSES. PLEASE expiration DISCUSS THESE COVERAGES WITH YOUR INSURANCE = "remium period Beginning August 28, 2018 through AGENT. August 28, 2019 at 12:01 A.M. standard time YOUR POLICY PROVIDES COVERAGE FOR A Baytoun Agency gency is CATASTROPHIC GROUND COVER COLLAPSE THAT per’ Lisenby Panama City FL 32405-3711 RESULTS IN THE PROPERTY BEING CONDEMNED AND = {3907543003 UNINHABITABLE. OTHERWISE, YOUR POLICY DOES tie intormationon your NOT PROVIDE COVERAGE FOR SINKHOLE LOSSES. Policy Declarations is used in the rating YOU MAY PURCHASE ADDITIONAL COVERAGE FOR —SiZwsithytenccrtasnenncrince please SINKHOLE LOSSES FOR AN ADDITIONAL PREMIUM, —f°ti'¥ us immediately if you believe that any information on your Policy (Ed. Date 11 /08) Declarations is incorrect. We will make corrections once you have notified us, and any resulting rate adjustments, will be made only for the current policy Total Premium for the Premium Period (Your bill will be mailed separately) . " . period or for future policy periods. Premium for property insured $1,687.00 Please also notify us immediately if you 01/2007 Florida Hurricane Catastrophe Fund Emergency $0.00 believe any coverages are not listed or Assessment are inaccurately listed. $1,689.00 (continued) FLO7ORBDRenewal Homeowners Policy Broad Declarations Policy number: 641795 973 Policy effective date: August 28, 2018 Total Premium for the Premium Period (continued) Your bill will be mailed separately. Before making a payment, please refer to your Jatest bill, which includes payment options and installment fee information. If you do not pay in full, you will be charged an installment fee(s). If you do not pay your bill by the due date shown on your billing statement, you may be charged a late fee. See the Important Payment and Coverage Information section for details about installment fees. The total premium includes a $1,045.00 hurricane premium. The total premium includes a $642.00 non-hurricane premium. The total premium includes a $2.00 EMPA trust fund surcharge. The total premium includes a windstorm loss mitigation discount. The total premium includes a $172.00 increase due to rate change. The total premium includes a $36.00 increase due to coverage changes. Other Premium Changes such as those caused by changes in discount, changes in surcharges, etc. resulted in a change of -$7.00. Discounts (included in your total premium) Windstorm Mitigation 18% Home and Auto 7% Location of property insured 1500 W 12th St, Panama City, FL 32401-1844 Rating Information The dwelling is of brick construction and is occupied by 1 family Your dwelling is 2 miles to the fire department Hurricane Premium adjusted 0% and Non-Hurricane Premium adjusted 0% for Building Code Effectiveness Grading Adjustments range from 1% surcharge to 11% discount. Mortgagee None Additional Interested Party None Page 2 of 4 FLO7ORBD TIOOOOOSKO1685085FL000180703233651001076002022014938 085070 009 180703SKO1685Renewal Homeowners Policy Broad Declarations Policy number: 641795 973 Policy effective date: August 28, 2018 FH Castle Key: INDEMNITY COMPANY Page 30f 4 Coverage detail for the property insured Coverage Limits of Liability Applicable Deductible(s) Dwelling Protection - with Building $135,000 * Other Peril Deductible Applies** Structure Replacement Cost Method « Deductible for Hurricane Applies*** Extended Limits Other Structures Protection $2,700 * Other Peril Deductible Applies** « Deductible for Hurricane Applies*** Personal Property Protection - $67,500 * Other Peril Deductible Applies** Replacement Cost Method Provision = Deductible for Hurricane Applies*** Additional Living Expense Lesser of $13,500 or 12 months $100,000 each occurrence $1,000 each person 25% of the Limit of Liability of Dwelling Protection Family Liability Protection Guest Medical Protection Building Codes (Law and Ordinance Coverage) » Other Coverages Not Purchased: = Business Property Protection* * Business Pursuits* * Cellular Communication System* * Electronic Data Processing Equipment* « Extended Coverage on Cameras* « Extended Coverage on Jewelry, Watches and Furs* « Extended Coverage on Musical Instruments* « Extended Coverage on Sports Equipment* « Fire Department Charges* * Golf Cart* « Home Day Care* * Incidental Office, Private *« Increased Coverage on Money* « Increased Coverage on Securities* « Increased Silverware Theft Limit* « Lock Replacement* « Loss Assessments” * Optional Protection for Mold* * Satellite Dish Antennas* * Sinkhole Activity* School Or Studio” * This coverage can provide you with valuable protection, To help you stay current with your insurance needs, contact your agent to discuss available coverage options and other products and services that can help protect you. ** $2,500 is your Other Peril Deductible, which applies to the total of all losses under the coverages indicated above. ***$6,750 (calculated by applying 5% to your Dwelling Protection limit) is your Deductible for Hurricanes, which applies to the total of all losses under the coverages indicated above. The Hurricane Deductible applicable at the time of loss may be higher or lower than the deductible listed above. Please read your Hurricane Deductible Endorsement carefully. Scheduled Personal Property Coverage Your policy does not include Scheduled Personal Property Coverage. This coverage can provide you with valuable protection. To help you stay current with your insurance needs, contact your agent to discuss available coverage options and other products and services that can help protect you. FLO7ORBDRenewal Homeowners Policy Broad Declarations Page 4 of 4 Policy number: 641795 973 Policy effective date: August 28, 2018 Your policy documents Your Homeowners policy consists of the Policy Declarations and the following documents. Please keep them together. « Homeowners Policy Broad - AP4688 « Amendatory Endorsement - AP4589 *« Florida Hurricane Deductible Endorsement - AP865-1 *« Florida Homeowners Policy Broad Amendatory Endorsement - AP4763-1 Important payment and coverage information Here is some additional, helpful information related to your coverage and paying your bill: >» A $10.00 late fee may be assessed if payment is received after the due date. > Coverage A - Dwelling Protection includes an approximate increase of $4,000 due to the Property Insurance Adjustment provision using the Marshall Swift Boeckh Publications Building Cost Index. Coverage C - Personal Property Protection adjusted accordingly. » Please note: This is not a request for payment. Your bill will be mailed separately. > If you decide to pay your premium in installments, there will be a $3.00 installment fee charge for each payment due. If you make 12 installment payments during the policy period, and do not change your payment plan method, then the total amount of installment fees during the policy period will be $36.00. If you are on the Castle Key Easy Pay Plan, there will be a $1.50 installment fee charge for each payment due. If you make 12 installment payments during the policy period, and remain on the Castle Key Easy Pay Plan, then the total amount of installment fees during the policy period will be $18.00. If you change payment plan methods or make additional payments, your installment fee charge for each payment due and the total amount of installment fees during the policy period may change or even increase. Please note that the Castle Key Easy Pay Plan allows you to have your insurance payments automatically deducted from your checking or savings account. > If You Have a Question About Your Insurance... If you wish to present an inquiry or obtain information about coverage, or if you need assistance in resolving a complaint, please call (850) 784-3903. HALE. Shoal Gyaw Kk Kove Michael S. Sheely Susan L. Lees President Secretary IN WITNESS WHEREOF, Castle Key Indemnity Company has caused this policy to be signed by two of its officers at Northbrook, Illinois, and if required by state law, this policy shall not be binding unless countersigned on the Policy Declarations by an authorized agent of Castle Key Indemnity Company. Policy countersigned by Baytown Agency FLO7ORBD TIO0OOOSKO1685085FL000180703233651001076003022014938 085070 009 180703SKO1685Policy Endorsement Policy number: Policy effective date: 641795 973 August 28, 2018 The following endorsement changes your policy. Please read this document carefully and keep it with your policy. Florida Homeowners Policy Broad Amendatory Endorsement - AP4763-1 |. Inthe General section, the following changes are made: A. The following changes are made under Definitions Used In This Policy: 1 2 The definition of item 4, bodily injury, is replaced by the following: 4. Bodily injury means physical harm to the body, including sickness or disease, and resulting death, or any resulting symptom, effect, condition, disease or illness. Bodily injury does not include any of the following which are communicable: disease, bacteria, parasite, virus or other organism, any of which are transmitted by any insured person to any other person. It also does not include the exposure to any such disease, bacteria, parasite, virus or other organism by any insured person to any other person. In addition, bodily injury does not include any symptom, effect, condition, disease or illness resulting in any manner from: a) _ lead in any form; b) asbestos in any form; c) radon in any form; or d) oil, fuel oil, kerosene, liquid propane or gasoline intended for, or from, a storage tank located at the residence premises. Under Guest Medical Protection-Coverage Y, bodily injury means physical harm to the body, including sickness or disease. Bodily injury does not include any of ‘the following which are communicable: disease, bacteria, parasite, virus or other organism, any of which are transmitted by any insured person to any other person. It also does not include the exposure to any such disease, bacteria, parasite, virus or other organism by any insured person to any other person. The definition of item 13, sinkhole activity, is replaced by the following: 1B. Sinkhole activity means settlement or systematic weakening of the earth supporting the dwelling we cover under Dwelling Protection-Coverage A that you reside in as your primary residence, but only if the settlement or systematic weakening results from contemporaneous Page 1 of 12 ss | Castle Key: INDEMNITY COMPANY movement or raveling of soils, sediments, or rock materials into subterranean voids created by the effect of water on a limestone or similar rock formation. We do not cover catastrophic ground cover collapse under Sinkhole Activity Coverage. The definition of item 14, catastrophic ground cover collapse, is replaced by the following: 14. Catastrophic ground cover collapse means geological activity that results in all the following: a) _ the abrupt collapse of the ground cover; b) adepression in the ground cover clearly visible to the naked eye; c) _ structural damage to the dwelling, or the dwelling foundation, that we cover under Dwelling Protection-Coverage A; and d) that dwelling being condemned and ordered to be vacated by the governmental agency authorized by law to issue such an order for that dwelling. Catastrophic ground cover collapse does not include damage consisting merely of settling or cracking of a foundation, structure or dwelling that we cover under Dwelling Protection-Coverage A. 4. — The following definitions are added: Sinkhole loss means structural damage to the dwelling, or the dwelling foundation, that we cover under Dwelling Protection-Coverage A, caused by sinkhole activity. Coverage for personal property covered under Personal Property Protection-Coverage C and additional living expenses will apply only if there is structural damage to the dwelling, or the dwelling foundation, that we cover under Dwelling Protection-Coverage A, caused by sinkhole activity. Structural damage means the dwelling that we cover under Dwelling Protection-Coverage A, 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 represents 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 membersPolicy endorsement Policy number: Policy effective date: 20. 641795 973 August 28, 2018 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 exceeds 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 in the Florida Building Code; 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 within the sheer plane necessary for the purpose of supporting such building as defined in 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. Primary structural member means a structural element designed to provide support and stability for the vertical or lateral loads of the overall structure. Primary structural system means an assemblage of primary structural members. Hurricane means wind, wind gusts, hail, rain, tornadoes, or cyclones caused by or resulting from a storm system declared by the National Hurricane Center of the National Weather Service to be a hurricane. The duration of the hurricane includes the time period, in Florida: a) _ beginning at the time a hurricane watch or hurricane warning is issued for any part of Florida by the National Hurricane Center of the National Weather Service; b) continuing for the time period during which hurricane conditions exist anywhere in Florida; and ©) _ ending 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. Rebate means a remuneration, payment, gift, discount, or transfer of any item of value to you by or on behalf of a Page 2 of 12 person performing repairs as an incentive or inducement to obtain repairs performed by that person. The Cancellation provision is replaced by the following: Cancellation Your Right to Cancel: You may cancel this policy by notifying us of the future date you wish to stop coverage. Our Right to Cancel: We may cancel this policy by mailing notice to you at the mailing address shown on the Policy Declarations. When this policy has been in effect for 90 days or less, and it is not a renewal with us, we may cancel this policy for any reason. If the cancellation is for non-payment of premium, we will give you at least 10 days’ notice, If the cancellation is for any other reason, we will give you at least 20 days’ notice. When this policy has been in effect for 90 days or less, we may cancel for any reason, except we may not cancel: 1. onthe basis of property insurance claims that are the result of an Act of God, unless we can demonstrate, by claims frequency or otherwise, that you have failed to take action reasonably necessary as requested by us to prevent recurrences of damage to the insured property. 2. _ onthe basis of a single claim on a property insurance policy which is the result of water damage unless we can demonstrate you have failed to take action reasonably requested by us to prevent a future similar occurrence of damage to the insured property. We will not cancel this policy based on the lawful use, possession, or ownership of a firearm or ammunition by an insured person or household member of an insured person. When this policy has been in effect for more than 90 days, or if it is a renewal with us, we may cancel this policy for one or more of the following reasons: 1. non-payment of premium; a substantial change in the risk covered by the policy; material misstatement; or failure to comply, within 90 days after the date of effectuation of coverage, with underwriting requirements established by us before the date of effectuation of coverage. RwN When this policy has been in effect for more than 90 days, or if itis a renewal with us, we will not cancel this policy based on credit information available in public records. We will not cancel this policy based on the lawful use, possession, or ownership of a firearm or ammunition by an insured person or a household member of an insured person. MO0OOOSKO1685085FLO00180703233651001076004022014938 085070 009 180703SKO1685Policy endorsement Policy number: Policy effective date: 641795 973 August 28, 2018 Page 3 of 12 ss | Castle Key: INDEMNITY COMPANY If the cancellation is for non-payment of premium, we will give you at least 10 days’ notice. If the cancellation is for any other reason, we will give you at least 120 days’ notice. If the cancellation is for non-payment of premium by your mortgage lender and the premium payment made is not more than 90 days overdue, we shall reinstate the insurance policy, retroactive to the date of cancellation. Our mailing the notice of cancellation to you will be deemed proof of notice. Coverage under this policy will terminate on the effective date and time stated on the cancellation notice. Your return premium, if any, will be calculated on a pro rata basis and refunded at the time of cancellation or within 15 working days after the effective date of cancellation. Any unearned premium amounts under $5.00 will be refunded only upon your request. However, refund of unearned premium is not a condition of cancellation. Our Right Not to Renew or Continue: We have the right not to renew or continue this policy beyond the current premium period, If we do not intend to continue or renew the policy, we will give you at least 120 days’ notice. Our mailing the notice of non-renewal to you will be deemed proof of notice. We may non-renew or discontinue this policy for any reason, except: 1. onthe basis of property insurance claims that are the result of This policy is void if it was obtained by misrepresentation, fraud or concealment of material facts. If it is determined that this policy is void, all premium paid will be returned to you since there has been no coverage under this policy. We do not cover any loss or occurrence in which any insured person has concealed or misrepresented any material fact or circumstance. If this policy has been in effect for more than 90 days, or if it is a renewal with us, a claim filed by an insured person will not be denied based on credit information available in public records. D. The following provision is added: Notice Ifa company employee adjuster, independent adjuster, attorney, investigator, or other person acting on our behalf needs access to an insured person or claimant or to the insured premises that is the subject of a claim, that person must provide at least 48 hours’ notice to the insured person or claimant, public adjuster, or legal representative before scheduling a meeting with the claimant or an onsite inspection of the insured premises. The insured person or claimant may deny access to the insured premises if notice has not been provided. The insured person or claimant may waive the 48-hour notice. an Act of God, unless we can demonstrate, by claims frequency or otherwise, that you have failed to take action reasonably necessary as requested by us to prevent recurrences of damage Il. In Section |—Your Property, the following changes are made: A. Under Losses We Do Not Cover Under Coverages A And B, the to the insured property. 2. _ onthe basis of filing of claims for sinkhole loss, unless: a) the total of such claim payments equals or exceeds the limit of liability for property damage to the dwelling we cover under Dwelling Protection-Coverage A in effect on the date of the loss; or b) you failed to repair the dwelling we cover under Dwelling Protection-Coverage A in accordance with the engineering recommendations upon which claim payment was based. 3. on the basis of a single claim on a property insurance policy which is the result of water damage unless we can demonstrate you have failed to take action reasonably requested by us to prevent a future similar occurrence of damage to the insured property. 4. — onthe basis of the lawful use, possession, or ownership of a firearm or ammunition by an insured person or a household member of an insured person. 5. _ onthe basis of credit information available in public records. The Concealment Or Fraud provision is replaced by the following: following changes have been made: 1. Items 4, 5, 9, 16, 23 and 24 are replaced by the following: 4, Water or any other substance on or below the surface of the ground, regardless of its source. This includes water or any other substance which exerts pressure on, or flows, seeps or leaks through any part of the residence premises. Except as otherwise excluded under items 1 through 3 above, this exclusion does not apply to the sudden and accidental discharge of water. 5. _ Earth movement of any type, including, but not limited to, earthquake, volcanic eruption, lava flow, landslide, subsidence, mudflow, pressure, sinkhole, erosion or the sinking, rising, shifting, creeping, expanding, bulging, cracking, settling or contracting of the earth. This exclusion applies whether or not the earth movement is combined with water. However, we will not apply this exclusion to sudden and accidental direct physical loss to the dwelling which consists of, or is caused by: a) catastrophic ground cover collapse; orPolicy endorsement Policy number: Policy effective date: 23. 641795 973 August 28, 2018 b) sinkhole activity covered under Sinkhole Activity Coverage, if Sinkhole Activity Coverage is shown on the Policy Declarations. We do not cover loss caused by catastrophic ground cover collapse or sinkhole activity under Other Structures Protection-Coverage B. We do cover sudden and accidental direct physical loss caused by fire, explosion, theft or breakage of glass or safety glazing materials resulting from earth movement. Intentional or criminal acts of, or at the direction of any insured person, if the loss that occurs: a) may be reasonably expected to result from such acts; or b) _ is the intended result of such acts. This exclusion applies regardless of whether or not the insured person is actually charged with, or convicted of a crime. The application of this exclusion will not be based solely on an arrest or the issuance of a citation. Freezing of plumbing, fire protective sprinkler systems, heating or air conditioning systems or household appliances, or discharge, leakage or overflow from within the systems or appliances caused by freezing, while the building structure is vacant or being constructed unless you have used reasonable care to: a) maintain heat in the building structure; or b) _ shut off the water supply and drain the system and appliances. This exclusion applies only to: a) _ lossin excess of $50,000 to pool enclosures, carports, Florida rooms, sun rooms and patio enclosures that have any aluminum supporting frames or studs. Loss in excess of $50,000 is excluded regardless of the number of pool enclosures, carports, Florida rooms, sun rooms and patio enclosures involved in the loss. This exclusion applies whether or not the pool enclosure, carport, Florida room, sun room or patio enclosure is fastened or attached to, or a part of, a building structure; b) _ loss to screens for pool enclosures, carports, Florida rooms, sun rooms or patio enclosures that have any aluminum supporting frames or studs; c) _ loss to fences, whether or not fastened or attached to, or a part of, a building structure; and 24, Page 4 of 12 d) _ loss to above ground outdoor pools, awnings and outdoor antennas, whether or not fastened or attached to a building structure. We do not cover loss to covered property described in Dwelling Protection-Coverage A or Other Structures Protection-Coverage B when: a) _ there are two or more causes of loss to the covered property; and b) the predominant cause(s) of loss is (are) excluded under Losses We Do Not Cover, items 1 through 23 above. However, any sudden and accidental loss to property described in Dwelling Protection-Coverage A or Other Structures Protection-Coverage B that follows items 1 through 23 is covered, unless excluded by this policy. 2. The following item is added: 25. Mold, fungus, wet rot, dry rot or bacteria. This includes any loss which, in whole or in part, arises out of, is aggravated by or results from mold, fungus, wet rot, dry rot or bacteria. This exclusion applies regardless of whether mold, fungus, wet rot, dry rot or bacteria arises from any other cause of loss, including, but not limited to, a loss involving water, water damage or discharge, which may otherwise be covered by this policy, except as specifically provided in Section | Conditions, Mold, Fungus, Wet Rot And Dry Rot Remediation As A Direct Result Of A Covered Water Loss. B. Under Losses We Cover Under Coverage C, the following changes are made: 1. Item 2 is replaced by the following: 2. Windstorm or hail. ‘We do not cover: a) _ loss to personal property inside a building structure caused by rain, snow, sleet, sand or dust unless the wind or hail first damages the roof or walls and rain, snow, sleet, sand or dust enters through the damaged roof or wall; b) _ loss to watercraft and their trailers, furnishings, equipment and motors unless inside a fully enclosed building structure. However, we do cover canoes and rowboats on the residence premises; or ©) _ loss to personal property not inside a building structure, caused by hurricane. M1O0000SK01685085FLO00180703233651001076005022014938 085070 009 180703SKO1685Policy endorsement Policy number: Policy effective date: 641795 973 August 28, 2018 The paragraph after item 14 is replaced by the following: We do not cover loss at the residence premises under perils 12, 13 and 14 caused by or resulting from freezing while the building structure is vacant or under construction unless you have used reasonable care to: a) maintain heat in the building structure; or b) shut off the water supply and drain the water from the systems and appliances. Item 17 is replaced by the following: 17. Sinkhole activity, but only if Sinkhole Activity Coverage is shown on the Policy Declarations. We do not cover losses caused by sinkhole activity under Personal Property Protection-Coverage C unless the sinkhole activity causes structural damage to the dwelling, or the dwelling foundation, that we cover under Dwelling Protection-Coverage A. C. Under Losses We Do Not Cover Under Coverage C, items 4, 5 and 9 are replaced by the following: 4. Water or any other substance on or below the surface of the ground, regardless of its source. This includes water or any other substance which exerts pressure on, or flows, seeps or leaks through any part of the residence premises. Except as otherwise excluded under items 1 through 3 above, this exclusion does not apply to the sudden and accidental discharge of water. Earth movement of any type, including, but not limited to, earthquake, volcanic eruption, lava flow, landslide, subsidence, mudflow, pressure, sinkhole, erosion or the sinking, rising, shifting, creeping, expanding, bulging, cracking, settling or contracting of the earth. This exclusion applies whether or not the earth movement is combined with water. However, we will not apply this exclusion to sudden and accidental direct physical loss which consists of, or is caused by: a) catastrophic ground cover collapse; or b) _ sinkhole activity covered under Sinkhole Activity Coverage, if Sinkhole Activity Coverage is shown on the Policy Declarations. We do not cover loss caused by catastrophic ground cover collapse or sinkhole activity under Personal Property Protection-Coverage C unless the catastrophic ground cover collapse or sinkhole activity causes structural damage to the dwelling, or the dwelling foundation, that we cover under Dwelling Protection-Coverage A. Page 5 of 12 ss | Castle Key: INDEMNITY COMPANY We do cover sudden and accidental direct physical loss caused by fire, explosion, theft or breakage of glass or safety glazing materials resulting from earth movement. 9. Intentional or criminal acts of or at the direction of any insured person, if the loss that occurs: a) may be reasonably expected to result from such acts; or b) _ is the intended result of such acts. This exclusion applies regardless of whether or not the insured person is actually charged with or convicted of a crime. The application of this exclusion will not be based solely on an arrest or the issuance of a citation. In Section I, Additional Protection, the following changes are made: 1. Under item 1, Additional Living Expense, sub-item b) is replaced by the following: b) Except as indicated below, we will pay your lost fair rental income resulting from a covered loss under Dwelling Protection-Coverage A, Other Structures Protection-Coverage B or Personal Property Protection-Coverage C, less charges and expenses which do not continue, when a loss we cover under Dwelling Protection-Coverage A, Other Structures Protection-Coverage B or Personal Property Protection-Coverage C makes the part of the residence premises you rent to others, or hold for rental, uninhabitable. We will pay for lost fair rental income for the shortest time required to repair or replace the part rented or held for rental, but not to exceed 12 months or 10% of the limit of liability as shown on the Policy Declarations for Dwelling Protection-Coverage A. However, payments for your lost fair rental income expense due to remediation of mold, fungus, wet rot or dry rot will not be paid in addition to any amounts paid or payable under Section | Conditions, Mold, Fungus, Wet Rot And Dry Rot Remediation As A Direct Result Of A Covered Water Loss. This fair rental income coverage does not apply to lost fair rental income resulting from a loss caused by hurricane. 2. Item 6, Temporary Repairs After a Loss, is replaced by the following: 6. Reasonable Emergency Measures a) Weill pay up to the greater of $3000 or one percent of the limit of liability shown on the Policy Declarations for Dwelling Protection-Coverage A for the reasonable and necessary costs incurred by you for measures taken solely to protect covered cePolicy endorsement Policy number: Policy effective date: b) ° d) 641795 973 August 28, 2018 property from further covered loss following a loss we cover. We will not pay more than the amount in 6a) above, unless we agree within 48 hours of your request to us to exceed that limit. If we agree to exceed that limit, we will pay only up to the additional amount for the measures we authorize. If we fail to respond to you within 48 hours of your request to us to exceed that limit, and the damage or loss is caused by a peril insured against, you may exceed the limit indicated in 6a) above only up to the cost incurred by you for the reasonable and necessary emergency measures necessary to protect the covered property from further covered loss. If however a covered loss occurs during a hurricane the amount we pay under this additional protection is not limited to the amount in 6.a) above. A reasonable measure under this provision may include a permanent repair when necessary to protect the covered property from further damage or to prevent unwanted entry to the property. To the degree reasonably possible, any damaged property must be retained by you for our inspection. This protection does not increase the limit of liability applying to the covered property, 3. Item 10, Building Codes, is replaced by the following: 10. Building Codes The limit of liability for Building Codes coverage is shown ‘on your Policy Declarations as a percentage of the limit of liability for Dwelling Protection-Coverage A. We will pay up to the limit of liability for Building Codes coverage to comply with applicable laws regulating the construction, reconstruction, maintenance, replacement, repair, placement or demolition of any property after a covered loss to covered building structures and when the construction, reconstruction, maintenance, replacement, repair, placement or demolition results in increased costs due to the enforcement of these laws. Such coverage shall include the removing of debris and shall apply only to repairs of the damaged portion of the covered building structure, unless the total damage to the covered building structure exceeds 50% of the replacement cost of the covered building structure. The amount of insurance provided by this coverage is a separate limit of liability, and is the maximum we will pay for any one loss. Page 6 of 12 This Building Codes coverage does not apply to loss to pool enclosures, carports, Florida rooms, sun rooms and patio enclosures that have any aluminum supporting frames or studs, when the loss is caused by hurricane. E. In Section |—Conditions, the following changes are made: 1. Under item 3, What You Must Do After A Loss, sub-item a) is replaced by the following: a) b) promptly give us or our agent notice, Report any theft to the police as soon as possible. ? 2d 3) 4) If the loss was caused by sinkhole activity, you must notify us of any resulting claim, supplemental claim or reopened claim within two years after you knew or reasonably should have known about the sinkhole loss. If the loss was caused by windstorm or hurricane, you must notify us of any resulting claim, supplemental claim or reopened claim within three years after the hurricane first made landfall or the windstorm caused the damage. If the loss was not a result of sinkhole, hurricane or is not a reasonable emergency measure taken under Reasonable Emergency Measures, there is no coverage for permanent repairs that begin before the earlier of: a) 72hours after we are notified of the loss; b) The time of the loss inspection by us; or c) The time of other approval by us. If the loss involves a credit card, charge plate or bank transfer card, give written notice to the company or bank that issued the card or plate. protect the covered property from further damage. The following must be performed: dD 2 Take reasonable emergency measures that are necessary to protect the covered property from further damage, as provided under the Reasonable Emergency Measures provision. A reasonable emergency measure under b) 1) above may include a permanent repair when necessary to protect the covered property from further damage or to prevent unwanted entry to the property. To the degree reasonably possible, the damaged property must be retained for us to inspect. Keep an accurate record of any repair expenses. 2. Under item 3, What You Must Do After A Loss, the following paragraph is added: MO0OOOSKO1685085FLO00180703233651001076006022014938 085070 009 180703SKO1685Policy endorsement Policy number: 641795 973 Page 7 of 12 Policy effective date: August 28, 2018 8 We have no duty to provide coverage under this section if you fail to comply with items a) through g) above, and this failure to comply is prejudicial to us. 3. Item 4, How We Pay For A Loss, is revised as follows: a) The first paragraph of the How We Pay For A Loss provision is replaced by the following: Within 90 days after we receive notice of an initial, reopened, or supplemental claim under Dwelling Protection-Coverage A, Other Structures Protection-Coverage B or Personal Property Protection-Coverage C from you, we shall pay or deny such claim or a portion of the claim unless the failure to pay such claim or a portion of the claim is caused by factors beyond our control which reasonably prevent such payment, Claims will be paid within 20 days of written agreement between you and us, except as provided in subparagraph b)(1) below regarding the payment of amounts for underpinning or grouting. b) The Actual Cash Value Method provision is replaced by the following: a) Actual Cash Value Method Except as provided in the Personal Property Replacement Cost Method provision below, if you do not repair or replace the damaged, destroyed or stolen property, payment will be on an actual cash value basis. This means there may be a deduction for depreciation. Payment will not exceed the limit of liability shown on the Policy Declarations for the coverage that applies to the damaged, destroyed or stolen property, regardless of the number of items involved in the loss. You may make claim for additional payment as described in paragraph b) below, if applicable, if you repair or replace the damaged, destroyed or stolen covered property. ©) The Building Structure Replacement Cost Method provision is replaced by the following: b) Building Structure Replacement Cost Method Except as otherwise provided below, we will make additional payment to reimburse you for costs in excess of actual cash value if you repair, rebuild or replace damaged, destroyed, or stolen covered property under Dwelling Protection-Coverage A and Other Structures Protection-Coverage B. We will make payment as the repair, rebuilding or FH Castle Key: INDEMNITY COMPANY replacement work is performed and expenses are incurred. Payment for total loss to property covered under Dwelling Protection-Coverage A and Other Structures Protection-Coverage B will be ona replacement cost basis, meaning that the amount we pay you for the repair, rebuilding or replacement of the damaged, destroyed or stolen covered property will not include a deduction for depreciation. The following subparagraphs (1) and (2) will apply if Sinkhole Activity Coverage is shown on your Policy Declarations: (1) Inthe event of a covered sinkhole loss, payment to repair, rebuild or replace the damaged or destroyed dwelling will be on an actual cash value basis until you enter into a contract for the performance of building stabilization or foundation repairs. Payment on an actual cash value basis means there may be a deduction for depreciation. Once you enter into a contract for the performance of building stabilization or foundation repairs, we shall pay the additional amounts necessary to begin and perform the repairs, rebuilding or replacement of the damaged or destroyed dwelling, or the dwelling foundation, as the work is performed and the expenses are incurred, Notwithstanding any other provision contained in this policy, we will not pay any amounts for underpinning or grouting until you enter into a contract for the performance of building stabilization or foundation repairs. The stabilization and all other repairs to the structure must be completed within 12 months after you enter into the contract, unless: (a) there is a mutual agreement between you and us; (b) the claim is involved with the neutral evaluation process; (©) the claim is in litigation; or (d)_ the claim is under appraisal or mediation. You may not accept a re