Kelley Kronenberg Secures Walk-Away Settlement in $230K Property Insurance Case

Kelley Kronenberg Practice Partner Coral Lerner secured a complete walk-away settlement for First Protective Insurance Company in Seminole County Circuit Court, eliminating over $230,000.00 in exposure plus potential attorney’s fees through strategic presentation of pre-existing damage evidence. 

The case arose when insureds reported a hail and wind claim approximately six months after the alleged date of loss, claiming hail and wind damage to the roof and exterior with ensuing interior water damage. The significant delay in reporting immediately raised red flags about the causation and timing of the claimed damage. 

Frontline investigated the claim through a field adjuster inspection and retained a pre-suit engineer to evaluate the property. Based on their findings, the carrier denied coverage, citing wear and tear, thermal expansion and contraction, and damage from repeated leakage of water that occurred or developed over a period of time. The insureds filed a breach of contract lawsuit seeking over $230,000.00. 

Coral immediately began assembling a comprehensive evidentiary record to demonstrate the pre-existing nature of the roof damage. She obtained the property’s pre-purchase inspection report, which documented roof conditions before the insureds acquired the property. She analyzed statements made by the insureds about the property’s condition. She reviewed aerial imagery showing the roof’s deterioration over time. Most compellingly, she synthesized the field adjuster and engineer findings showing prior repairs to the roof directly above the interior rooms where water damage was now being claimed. 

The timeline evidence proved particularly damaging to the insureds’ case. Coral discovered that Frontline had issued a non-renewal notice in May 2024—three months before the claim was even reported—specifically requiring roof replacement as a condition of continued coverage. This non-renewal notice demonstrated the carrier had already identified the roof as a risk due to its deteriorated condition before the insureds reported any hail or wind claim. 

The pattern was clear: the insureds had a deteriorating roof with documented prior repair attempts, the carrier had identified the roof as requiring replacement due to its condition, and only after receiving the non-renewal notice did the insureds report a “hail and wind” claim attempting to obtain coverage for interior water damage caused by the long-standing roof deficiencies. 

Coral prepared to file a motion for summary judgment based on the pre-existing damage defense. Her evidence would establish that the interior water damage resulted from the roof’s deteriorated condition and prior leakage issues—not from any covered hail or wind event during the policy period. The aerial imagery, pre-purchase inspection, prior repair history, and non-renewal timing all pointed to gradual, long-term deterioration rather than sudden hail or wind damage. 

Before filing the motion, Coral extended a strategic walk-away settlement offer to opposing counsel. She proposed that the insureds dismiss the case with prejudice in exchange for both parties bearing their own attorney’s fees and costs. Faced with Coral’s comprehensive evidence of pre-existing damage, the timeline showing the non-renewal notice preceded the claim report, and the prospect of defending against a well-supported summary judgment motion, opposing counsel recognized the strength of the defense position. 

The insureds accepted the walk-away offer and filed a dismissal with prejudice shortly thereafter. The carrier paid nothing toward the claimed damages, avoided all attorney’s fees exposure, and obtained finality through the prejudicial dismissal preventing any refiling of the claims. 

This outcome demonstrates the value of thorough pre-suit investigation and strategic use of non-renewal notices, inspection reports, and aerial imagery to establish pre-existing conditions. When late-reported claims coincide with documented roof deterioration and non-renewal notices for roof replacement, aggressive presentation of pre-existing damage evidence creates powerful settlement leverage. The case reinforces that insureds cannot convert long-term maintenance failures into covered sudden loss claims by attributing deterioration damage to weather events—particularly when the evidence shows prior repairs, deteriorating conditions, and carrier concerns documented before the claim was reported. 

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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