Kelley Kronenberg Resolves Approximately $475K Hurricane Claim for Nominal Amount
Kelley Kronenberg Partner Emma Meyerson resolved a first-party property insurance case for a nominal amount—down from a claimed demand of approximately $475,000.00—after uncovering evidence that the insureds knew of their damages just days after Hurricane Ian but waited 419 days to report the claim.
The case involved a Hurricane Ian claim in Broward County, Florida. The carrier denied the claim following inspections by both a field adjuster and an engineer. The denial was based on several grounds: prejudice from the late reporting, no storm-created openings, and evidence of prior repairs that could not be evaluated due to the delayed notice.
Before suit, the plaintiffs submitted an estimate of approximately $468,000.00. They then filed a breach of contract action seeking approximately $475,000.00 in damages.
The turning point came during depositions. Emma discovered that the husband had used YouTube just days after Hurricane Ian to look up how to relieve water pressure on the roof caused by a leak. He then drilled a hole in the ceiling, allowing water to drain into a bucket inside the home. During the deposition, Emma requested photos and videos of the damage—materials the plaintiffs had not provided in discovery responses or during the carrier’s presuit investigation. The husband produced them on the spot. That evidence, combined with his testimony, confirmed that the insureds knew about the damage within days of the storm but did not report the claim to the carrier until 419 days later—and only with the help of a public adjuster.
Armed with this testimony, Emma filed a Motion for Summary Judgment based on the insureds’ failure to comply with the prompt notice requirement in the policy’s Duties After Loss provision. The motion also addressed the insureds’ failure to timely show the damaged property, failure to protect it from further damage, and evidence of pre-existing conditions including wear and tear, deterioration, and prior faulty repairs.
Rather than face summary judgment—and the potential to be on the hook for the carrier’s fees and costs—the plaintiffs accepted a nominal Global Proposal for Settlement on the final day to respond.
The result: a claim seeking approximately $475,000.00 resolved for less than a thousand dollars.
This case highlights the importance of thorough depositions in first-party property cases. The insureds’ own testimony about their post-storm activities and delayed reporting provided the foundation for a dispositive motion that forced a favorable resolution.
Learn more about the firm’s First-Party Property and Coverage Division; click here: https://www.kelleykronenberg.com/our-practices/first-party-insurance-defense-coverage-bad-faith/
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