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Filing # 101731808 E-Filed 01/15/2020 05:12:39 PM
IN THE CIRCUIT COURT OF THE
FOURTEENTH JUDICIAL CIRCUIT, IN AND FOR
BAY COUNTY, FLORIDA
MARGARITA VENCIUS-REDD,
Plaintiff,
VS. CASE NO.: 19-004413 CA
CASTLE KEY INSURANCE COMPANY,
Defendant.
DEFENDANT, CASTLE KEY INSURANCE COMPANY’S
MOTION TO DISMISS COMPLAINT
Defendant, Castle Key Insurance Company, pursuant to Florida Rule of Civil Procedure
1.140(b)(6) files this Motion to Dismiss Plaintiff's Complaint and as grounds therefor states:
1 This action arises out of storm damage sustained to the home of Margarita
Vencius-Redd. (Complaint 4 8). It is alleged that on that date, the Plaintiff was insured under a
homeowners insurance policy issued by Castle Key Insurance Company. (Complaint { 9).
2. The homeowners insurance policy referred to in Plaintiff's Complaint was not
issued by Castle Key Insurance Company. Rather, the policy was issued by Castle Key
Indemnity Company. See attached Exhibit “A”.
3. Plaintiff's Complaint should be dismissed with prejudice inasmuch as the subject
homeowners insurance policy was not issued by Castle Key Insurance Company. Plaintiff
therefore has no viable action against Castle Key Insurance Company.
WHEREFORE, Defendant, Castle Key Insurance Company, respectfully requests that
this Court enter an order dismissing Plaintiff's Complaint with prejudice.CERTIFICATE OF SERVICE
I HEREBY CERTIFY that a true copy of the foregoing was served by e-Filing with the
Clerk of Court and via Florida e-Filing Portal to the following, this 15™ day of January, 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 Defendantx Deak » 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
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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 rebate from whoever
performs the stabilization and repairs. UNDER
FLORIDA LAW, IF YOU DO RECEIVE A REBATE,
SINKHOLE ACTIVITY COVERAGE WILL BE
VOID AND YOU WILL HAVE TO PAY THE
AMOUNT OF THE REBATE TO US. If repair has
begun and the engineer selected or approvedPolicy endorsement
Policy number:
Policy effective date:
641795 973
August 28, 2018
by us determines that the repair cannot be
completed within the limit of liability for
Dwelling Protection-Coverage A shown on
the Policy Declarations, we must either pay to
complete the engineer's recommended repair
or pay you such limit of liability without
deductions for amounts we have already paid 3)
for repairs, rebuilding or replacement. i)
2)
(2) For direct physical losses caused by sinkhole
activity, other than total losses, payment
includes the reasonable and necessary cost to
replace, rebuild, stabilize or otherwise restore
the earth necessary to support that part of the
dwelling, or the dwelling foundation,
sustaining a covered sinkhole loss, but only if
you enter into a contract to stabilize the earth
and dwelling and repair the foundation in a
manner consistent with the recommendations
of the engineer we select or approve within
90 days after we confirm coverage for the
sinkhole loss and notify you of such
confirmation. This time period is tolled if either
party invokes the neutral evaluation process,
and begins again 10 days after the conclusion
of the neutral evaluation process. Payments
under such contract will be made in
consultation with you.
Payment under this Building Structure
Replacement Cost Method will include the cost to
treat or remove and dispose of contaminants, toxins
or pollutants as required to complete repair or
replacement of that part of a building structure
damaged by a covered loss; but only to the extent
such losses are not otherwise excluded under items
10, 13 and 14 of the Losses We Do Not Cover Under
Coverages A and B provision.
ii)
This payment shall not include any amounts which
may be paid or payable under Section | Conditions,
Mold, Fungus, Wet Rot And Dry Rot Remediation
As A Direct Result Of A Covered Water Loss, and
shall not be payable for any losses excluded in
Section |—Your Property, Losses We Do Not
Cover Under Coverages A And B, item 25.
Our total payment under this Building Structure
Replacement Cost Method provision will not
exceed the smallest of the following amounts:
1) _ the reasonable and necessary cost to replace
the damaged part(s) of the building
Page 8 of 12
structure(s) with equivalent construction for
similar use on the same residence premises;
the reasonable and necessary cost to repair the
damaged part(s) of the building structure(s)
with equivalent construction for similar use on
the same residence premises; or
either:
the limit of liability applicable to the
building structure(s) as shown on the
Policy Declarations for Dwelling
Protection-Coverage A or Other
Structures Protection-Coverage B,
regardless of the number of building
structures and structures other than
building structures involved in the loss;
or
120% of the limit of liability applicable to
the building structure(s) as shown on
the Policy Declarations for Dwelling
Protection-Coverage A or Other
Structures Protection-Coverage B,
regardless of the number of building
structures and structures other than
building structures involved in the loss.
This sub-item b)3)ii) will only apply if:
(a) you have paid the additional
premium to purchase Building
Structure Replacement Cost
Method Extended Limits;
the Policy Declarations indicates
that Building Structure
Replacement Cost Method
Extended Limits applies; and
at the time of a covered loss, the
following requirements below are
met:
(1) You insure your dwelling,
attached structures and
detached building structures
to 100% of replacement cost
as determined by:
(i) _ our estimate completed
and based on the
accuracy of information
you furnished; or
our inspection of your
residence premises;
You have accepted the
Property Insurance Adjustment
(b)
(©
(ii)
(2)
M1O0000SK01685085FLO00180703233651001076007022014938
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180703SKO1685Policy endorsement
Policy number:
Policy effective date:
641795 973
August 28, 2018
Condition, agree to accept each
annual adjustment in the
Dwelling
Protection-Coverage A limit
of liability, and pay any
additional premium charged;
and
(3) You notify us within 60 days
of the start of any
modifications that increase the
aggregate value of your
dwelling, attached structures
and detached building
structures at the residence
premises by $5,000 or more,
and pay any resulting
additional premium due for the
increase in value.
If you fail to meet any of these three
requirements at the time of a covered loss
then sub-item b)3)ii) will not apply.
Ifyou replace the damaged building structure(s) at
an address other than shown on the Policy
Declarations through construction of a new structure
or purchase of an existing structure, such
replacement will not increase the amount payable
under this Building Structure Replacement Cost
Method provision. The amount payable under this
Building Structure Replacement Cost Method
provision does not include the value of any land
associated with the replacement structure(s).
This Building Structure Replacement Cost
Method provision will not apply to:
1) property covered under Personal Property
Protection-Coverage C;
2) property covered under Other Structures
Protection-Coverage B that is not a building
structure;
3) _ any building or building structure covered
under Other Structures
Protection-Coverage B where the roof
coverings or exterior walls are of screen, fabric,
thatch, lattice, slats or similar material;
4) fences, whether or not fastened or attached to
a building structure;
5) pools, awnings and outdoor antennas which are
not attached to a building structure or which
Page 9 of 12 ss | Castle Key:
d)
INDEMNITY COMPANY
are attached to a building structure other
than the dwelling;
6) land, except as specifically provided in Section
1l—Optional Protection, item 14, Sinkhole
Activity Coverage, only if Sinkhole Activity
Coverage is shown on the Policy Declarations;
or
7) _ 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.
However, this Building Structure Replacement
Cost Method provision will apply to:
1) _ pools, awnings and outdoor antennas which are
attached to the dwelling; and
2) any building or attached building structure
covered under Dwelling
Protection-Coverage A where the roof
coverings or exterior walls are of screen, fabric,
thatch, lattice, slats or similar material, except
for: pool enclosures; carports; Florida rooms;
sun rooms; or patio enclosures that have any
aluminum supporting frames or studs, when the
loss is caused by hurricane.
Payment under Section I—Conditions, item 4, How
We Pay For A Loss, sub-items a) Actual Cash
Value Method or b) Building Structure
Replacement Cost Method above will not include
any increased cost due to the enforcement of
building codes, ordinances or laws regulating the
construction, reconstruction, maintenance,
replacement, repair, placement or demolition of
building structures or other structures except as
provided under Section I, Additional Protection,
item 10, Building Codes.
Under subsection c) Personal Property Replacement
Cost Method, item 1 of the third paragraph is replaced by
the following:
1) _ property insured under Dwelling
Protection-Coverage A and Other Structures
Protection-Coverage B;
4. Item 5, Our Settlement Of Loss, is replaced by the following:
5.
Our Settlement Of Loss
We will settle any covered loss with you unless another
payee is named in the policy or is legally entitled to
receive payment. We will settle within 20 days after the
amount of loss is finally determined. This amount may be
EePolicy endorsement
Policy number: 641795 973
Policy effective date: August 28, 2018
5.
determined by an agreement between you and us, an
appraisal award, neutral evaluation of sinkhole activity
loss, or a court judgment. Notwithstanding the foregoing,
with respect to a covered sinkhole loss, as provided in
Section |—Conditions, item 4, How We Pay For A Loss,
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.
Item 8, Permission Granted To You, is replaced by the
following:
8. Permission Granted To You
a) The residence premises may be vacant for any
length of time, except where a time limit is indicated
in this policy for specific perils. A building structure
under construction is not considered vacant.
b) You may make alterations, additions or repairs, and
you may complete structures under construction.
Item 11, Suit Against Us, is replaced by the following:
Tl, Suit Against Us
No suit or action may be brought against us unless there
has been full compliance with all policy terms. Any suit or
action must be brought within five years after the date
of loss,
Item 18, Neutral Evaluation For Resolution Of Sinkhole
Activity Losses, is replaced by the following:
18. Neutral Evaluation For Resolution Of Sinkhole
Activity Losses
If Sinkhole Activity Coverage is shown on the Policy
Declarations and you have given us notice of a sinkhole
activity claim within two years after you knew or
reasonably should have known about the sinkhole loss,
then after a professional engineer or professional
geologist has provided a sinkhole report under Florida
Insurance Code Section 627.7073 or we have denied your
claim for a sinkhole loss, either party may request a
neutral evaluation. Neutral evaluation is nonbinding, but
mandatory if requested by either party. Ata minimum,
neutral evaluation must determine:
1, Causation;
2. All methods of stabilization and repair both above
and below ground;
3. The costs for stabilization and all repairs; and
4, — Information necessary to complete the neutral
evaluator's report.
A request for neutral evaluation may be filed with the
Florida Department of Financial Services (“DFS”) by the
Page 10 of 12
policyholder or the insurer on a form approved by the DFS.
The request for neutral evaluation must state the reason
for the request and must include an explanation of all the
issues in dispute at the time of the request. Filing a
request for neutral evaluation tolls the applicable time
requirements for filing suit for a period of 60 days
following the conclusion of the neutral evaluation process
or the time period prescribed in the Suit Against Us
provision, whichever is later.
Upon receipt of a request for neutral evaluation, the DFS
shall provide the parties a list of certified neutral
evaluators. The DFS shall allow the parties to submit
requests to disqualify evaluators on the list for the
following causes:
1. A familial relationship within the third degree exists
between the neutral evaluator and either party or a
representative of either party.
2. The proposed neutral evaluator has, ina professional
capacity, previously represented either party or a
representative of either party, in the same or a
substantially related matter.
3. The proposed neutral evaluator has, in a professional
capacity, represented another person in the same or
a substantially related matter and that person's
interests are materially adverse to the interests of
the parties. The term “substantially related matter"
means participation by the neutral evaluator on the
same claim, property, or adjacent property.
4, The proposed neutral evaluator has, within the
preceding 5 years, worked as an employer or
employee of any party to the case,
The parties shall mutually select a neutral evaluator from
the list and promptly inform the DFS. If the parties cannot
agree to a neutral evaluator within 14 business days, the
DFS shall appoint a neutral evaluator from its list of
certified neutral evaluators.
Upon determination of sinkhole loss by the neutral
evaluator, and mutual agreement to the recommendations
made by the neutral evaluator by you and us, payment for
sinkhole loss will be paid pursuant to Section
I—Conditions item 4, How We Pay For A Loss and item
5, Our Settlement Of Loss, and Section IIl—Optional
Protection, item 14, Sinkhole Activity Coverage .
This procedure stands in place of the Appraisal condition
in the event of a disputed sinkhole loss.
MO0OOOSKO1685085FLO00180703233651001076008022014938
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180703SKO1685Policy endorsement
Policy number:
Policy effective date:
Iv.
641795 973
August 28, 2018
This provision only applies when Sinkhole Activity
Coverage is shown on your Policy Declarations.
In Section Il—Family Liability And Guest Medical Protection, the
following changes are made:
A. Under Losses We Do Not Cover Under Coverage X, items 1 and 15
are replaced by the following:
1, We do not cover any bodily injury or property damage
intended by, or which may reasonably be expected to result
from the intentional or criminal acts or omissions or, any
insured person. The exclusion applies even if:
a) such insured person lacks the mental capacity to govern
his or her conduct;
b) such bodily injury or property damage is a different
kind of degree than that intended or reasonably expected;
or
©) _ such bodily injury or property damage is sustained by a
different person than that intended or reasonably
expected,
This exclusion applies regardless of whether or not such
insured person is actually charged with, or convicted of, a
crime. The application of this exclusion will not be based solely
onarrest or the issuance of a citation.
15. We do not cover any liability an insured person assumes
arising out of
Preview
Filing # 101731808 E-Filed 01/15/2020 05:12:39 PM IN THE CIRCUIT COURT OF THE FOURTEENTH JUDICIAL CIRCUIT, IN AND FOR BAY COUNTY, FLORIDA MARGARITA VENCIUS-REDD, Plaintiff, VS. CASE NO.: 19-004413 CA CASTLE KEY INSURANCE COMPANY, Defendant. DEFENDANT, CASTLE KEY INSURANCE COMPANY’S MOTION TO DISMISS COMPLAINT Defendant, Castle Key Insurance Company, pursuant to Florida Rule of Civil Procedure 1.140(b)(6) files this Motion to Dismiss Plaintiff's Complaint and as grounds therefor states: 1 This action arises out of storm damage sustained to the home of Margarita Vencius-Redd. (Complaint 4 8). It is alleged that on that date, the Plaintiff was insured under a homeowners insurance policy issued by Castle Key Insurance Company. (Complaint { 9). 2. The homeowners insurance policy referred to in Plaintiff's Complaint was not issued by Castle Key Insurance Company. Rather, the policy was issued by Castle Key Indemnity Company. See attached Exhibit “A”. 3. Plaintiff's Complaint should be dismissed with prejudice inasmuch as the subject homeowners insurance policy was not issued by Castle Key Insurance Company. Plaintiff therefore has no viable action against Castle Key Insurance Company. WHEREFORE, Defendant, Castle Key Insurance Company, respectfully requests that this Court enter an order dismissing Plaintiff's Complaint with prejudice.CERTIFICATE OF SERVICE I HEREBY CERTIFY that a true copy of the foregoing was served by e-Filing with the Clerk of Court and via Florida e-Filing Portal to the following, this 15™ day of January, 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 Defendantx Deak » 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 rebate from whoever performs the stabilization and repairs. UNDER FLORIDA LAW, IF YOU DO RECEIVE A REBATE, SINKHOLE ACTIVITY COVERAGE WILL BE VOID AND YOU WILL HAVE TO PAY THE AMOUNT OF THE REBATE TO US. If repair has begun and the engineer selected or approvedPolicy endorsement Policy number: Policy effective date: 641795 973 August 28, 2018 by us determines that the repair cannot be completed within the limit of liability for Dwelling Protection-Coverage A shown on the Policy Declarations, we must either pay to complete the engineer's recommended repair or pay you such limit of liability without deductions for amounts we have already paid 3) for repairs, rebuilding or replacement. i) 2) (2) For direct physical losses caused by sinkhole activity, other than total losses, payment includes the reasonable and necessary cost to replace, rebuild, stabilize or otherwise restore the earth necessary to support that part of the dwelling, or the dwelling foundation, sustaining a covered sinkhole loss, but only if you enter into a contract to stabilize the earth and dwelling and repair the foundation in a manner consistent with the recommendations of the engineer we select or approve within 90 days after we confirm coverage for the sinkhole loss and notify you of such confirmation. This time period is tolled if either party invokes the neutral evaluation process, and begins again 10 days after the conclusion of the neutral evaluation process. Payments under such contract will be made in consultation with you. Payment under this Building Structure Replacement Cost Method will include the cost to treat or remove and dispose of contaminants, toxins or pollutants as required to complete repair or replacement of that part of a building structure damaged by a covered loss; but only to the extent such losses are not otherwise excluded under items 10, 13 and 14 of the Losses We Do Not Cover Under Coverages A and B provision. ii) This payment shall not include any amounts which may be paid or payable under Section | Conditions, Mold, Fungus, Wet Rot And Dry Rot Remediation As A Direct Result Of A Covered Water Loss, and shall not be payable for any losses excluded in Section |—Your Property, Losses We Do Not Cover Under Coverages A And B, item 25. Our total payment under this Building Structure Replacement Cost Method provision will not exceed the smallest of the following amounts: 1) _ the reasonable and necessary cost to replace the damaged part(s) of the building Page 8 of 12 structure(s) with equivalent construction for similar use on the same residence premises; the reasonable and necessary cost to repair the damaged part(s) of the building structure(s) with equivalent construction for similar use on the same residence premises; or either: the limit of liability applicable to the building structure(s) as shown on the Policy Declarations for Dwelling Protection-Coverage A or Other Structures Protection-Coverage B, regardless of the number of building structures and structures other than building structures involved in the loss; or 120% of the limit of liability applicable to the building structure(s) as shown on the Policy Declarations for Dwelling Protection-Coverage A or Other Structures Protection-Coverage B, regardless of the number of building structures and structures other than building structures involved in the loss. This sub-item b)3)ii) will only apply if: (a) you have paid the additional premium to purchase Building Structure Replacement Cost Method Extended Limits; the Policy Declarations indicates that Building Structure Replacement Cost Method Extended Limits applies; and at the time of a covered loss, the following requirements below are met: (1) You insure your dwelling, attached structures and detached building structures to 100% of replacement cost as determined by: (i) _ our estimate completed and based on the accuracy of information you furnished; or our inspection of your residence premises; You have accepted the Property Insurance Adjustment (b) (© (ii) (2) M1O0000SK01685085FLO00180703233651001076007022014938 085070 009 180703SKO1685Policy endorsement Policy number: Policy effective date: 641795 973 August 28, 2018 Condition, agree to accept each annual adjustment in the Dwelling Protection-Coverage A limit of liability, and pay any additional premium charged; and (3) You notify us within 60 days of the start of any modifications that increase the aggregate value of your dwelling, attached structures and detached building structures at the residence premises by $5,000 or more, and pay any resulting additional premium due for the increase in value. If you fail to meet any of these three requirements at the time of a covered loss then sub-item b)3)ii) will not apply. Ifyou replace the damaged building structure(s) at an address other than shown on the Policy Declarations through construction of a new structure or purchase of an existing structure, such replacement will not increase the amount payable under this Building Structure Replacement Cost Method provision. The amount payable under this Building Structure Replacement Cost Method provision does not include the value of any land associated with the replacement structure(s). This Building Structure Replacement Cost Method provision will not apply to: 1) property covered under Personal Property Protection-Coverage C; 2) property covered under Other Structures Protection-Coverage B that is not a building structure; 3) _ any building or building structure covered under Other Structures Protection-Coverage B where the roof coverings or exterior walls are of screen, fabric, thatch, lattice, slats or similar material; 4) fences, whether or not fastened or attached to a building structure; 5) pools, awnings and outdoor antennas which are not attached to a building structure or which Page 9 of 12 ss | Castle Key: d) INDEMNITY COMPANY are attached to a building structure other than the dwelling; 6) land, except as specifically provided in Section 1l—Optional Protection, item 14, Sinkhole Activity Coverage, only if Sinkhole Activity Coverage is shown on the Policy Declarations; or 7) _ 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. However, this Building Structure Replacement Cost Method provision will apply to: 1) _ pools, awnings and outdoor antennas which are attached to the dwelling; and 2) any building or attached building structure covered under Dwelling Protection-Coverage A where the roof coverings or exterior walls are of screen, fabric, thatch, lattice, slats or similar material, except for: pool enclosures; carports; Florida rooms; sun rooms; or patio enclosures that have any aluminum supporting frames or studs, when the loss is caused by hurricane. Payment under Section I—Conditions, item 4, How We Pay For A Loss, sub-items a) Actual Cash Value Method or b) Building Structure Replacement Cost Method above will not include any increased cost due to the enforcement of building codes, ordinances or laws regulating the construction, reconstruction, maintenance, replacement, repair, placement or demolition of building structures or other structures except as provided under Section I, Additional Protection, item 10, Building Codes. Under subsection c) Personal Property Replacement Cost Method, item 1 of the third paragraph is replaced by the following: 1) _ property insured under Dwelling Protection-Coverage A and Other Structures Protection-Coverage B; 4. Item 5, Our Settlement Of Loss, is replaced by the following: 5. Our Settlement Of Loss We will settle any covered loss with you unless another payee is named in the policy or is legally entitled to receive payment. We will settle within 20 days after the amount of loss is finally determined. This amount may be EePolicy endorsement Policy number: 641795 973 Policy effective date: August 28, 2018 5. determined by an agreement between you and us, an appraisal award, neutral evaluation of sinkhole activity loss, or a court judgment. Notwithstanding the foregoing, with respect to a covered sinkhole loss, as provided in Section |—Conditions, item 4, How We Pay For A Loss, 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. Item 8, Permission Granted To You, is replaced by the following: 8. Permission Granted To You a) The residence premises may be vacant for any length of time, except where a time limit is indicated in this policy for specific perils. A building structure under construction is not considered vacant. b) You may make alterations, additions or repairs, and you may complete structures under construction. Item 11, Suit Against Us, is replaced by the following: Tl, Suit Against Us No suit or action may be brought against us unless there has been full compliance with all policy terms. Any suit or action must be brought within five years after the date of loss, Item 18, Neutral Evaluation For Resolution Of Sinkhole Activity Losses, is replaced by the following: 18. Neutral Evaluation For Resolution Of Sinkhole Activity Losses If Sinkhole Activity Coverage is shown on the Policy Declarations and you have given us notice of a sinkhole activity claim within two years after you knew or reasonably should have known about the sinkhole loss, then after a professional engineer or professional geologist has provided a sinkhole report under Florida Insurance Code Section 627.7073 or we have denied your claim for a sinkhole loss, either party may request a neutral evaluation. Neutral evaluation is nonbinding, but mandatory if requested by either party. Ata minimum, neutral evaluation must determine: 1, Causation; 2. All methods of stabilization and repair both above and below ground; 3. The costs for stabilization and all repairs; and 4, — Information necessary to complete the neutral evaluator's report. A request for neutral evaluation may be filed with the Florida Department of Financial Services (“DFS”) by the Page 10 of 12 policyholder or the insurer on a form approved by the DFS. The request for neutral evaluation must state the reason for the request and must include an explanation of all the issues in dispute at the time of the request. Filing a request for neutral evaluation tolls the applicable time requirements for filing suit for a period of 60 days following the conclusion of the neutral evaluation process or the time period prescribed in the Suit Against Us provision, whichever is later. Upon receipt of a request for neutral evaluation, the DFS shall provide the parties a list of certified neutral evaluators. The DFS shall allow the parties to submit requests to disqualify evaluators on the list for the following causes: 1. A familial relationship within the third degree exists between the neutral evaluator and either party or a representative of either party. 2. The proposed neutral evaluator has, ina professional capacity, previously represented either party or a representative of either party, in the same or a substantially related matter. 3. The proposed neutral evaluator has, in a professional capacity, represented another person in the same or a substantially related matter and that person's interests are materially adverse to the interests of the parties. The term “substantially related matter" means participation by the neutral evaluator on the same claim, property, or adjacent property. 4, The proposed neutral evaluator has, within the preceding 5 years, worked as an employer or employee of any party to the case, The parties shall mutually select a neutral evaluator from the list and promptly inform the DFS. If the parties cannot agree to a neutral evaluator within 14 business days, the DFS shall appoint a neutral evaluator from its list of certified neutral evaluators. Upon determination of sinkhole loss by the neutral evaluator, and mutual agreement to the recommendations made by the neutral evaluator by you and us, payment for sinkhole loss will be paid pursuant to Section I—Conditions item 4, How We Pay For A Loss and item 5, Our Settlement Of Loss, and Section IIl—Optional Protection, item 14, Sinkhole Activity Coverage . This procedure stands in place of the Appraisal condition in the event of a disputed sinkhole loss. MO0OOOSKO1685085FLO00180703233651001076008022014938 085070 009 180703SKO1685Policy endorsement Policy number: Policy effective date: Iv. 641795 973 August 28, 2018 This provision only applies when Sinkhole Activity Coverage is shown on your Policy Declarations. In Section Il—Family Liability And Guest Medical Protection, the following changes are made: A. Under Losses We Do Not Cover Under Coverage X, items 1 and 15 are replaced by the following: 1, We do not cover any bodily injury or property damage intended by, or which may reasonably be expected to result from the intentional or criminal acts or omissions or, any insured person. The exclusion applies even if: a) such insured person lacks the mental capacity to govern his or her conduct; b) such bodily injury or property damage is a different kind of degree than that intended or reasonably expected; or ©) _ such bodily injury or property damage is sustained by a different person than that intended or reasonably expected, This exclusion applies regardless of whether or not such insured person is actually charged with, or convicted of, a crime. The application of this exclusion will not be based solely onarrest or the issuance of a citation. 15. We do not cover any liability an insured person assumes arising out of