Citizens Property Insurance Corporation is Immune From Bad Faith Actions in Florida
I often get questions about Citizens Property Insurance Corporation and what to do about its controversial claims activities which harm policyholders. A former Citizens claims adjuster told an audience of some of these activities at last week’s FAPIA annual convention. Following this presentation, some called upon me to file bad faith suits against Citizens for wrongful delay or denial of claims. While some of the activities may give rise to class action lawsuits, Citizens has immunity for bad faith claims conduct.
Last Friday, Florida's Fifth District Court of Appeal reaffirmed Citizen’s immunity from first party bad faith lawsuits in Citizens Property Ins. v. La Mer Condominium Assoc., Inc., No. 5D09-3578, 35 Fla. L. Weekly D1468a (Fla. 5th DCA July 2, 2010). The opinion stated:
The petitioner, Citizens Property Insurance Corporation, seeks a writ of prohibition directed to the trial court to prevent the court from taking any further action with respect to a first-party bad faith claim brought by the respondent, La Mer Condominium Association. The identical issue was presented to this court in Citizens Property Insurance Corp. v. Garfinkel, 25 So. 3d 62 (Fla. 5th DCA 2009) (rehearing denied January 15, 2010), which was pending at the time the petition was filed in this case. That case has now been decided, holding that Citizens is immune from first-party bad faith claims pursuant to sections 627.351(6)(r)1. and 624.155(1)(b)1., Florida Statutes. Id. As such, prohibition is also granted in this case for the reasons set forth in Garfinkel. (emphasis added)
There is little reason for Citizens to adjust its policyholder’s claims timely or fairly because there are no causes of action which allow for the extra-contractual damages caused by Citizens. Until the Florida legislature allows Citizen’s to be placed on the same footing as private insurers through consumer protection laws, those insuring with Citizens should not expect that wrongful claims actions by Citizens can be addressed or that Citizens can be held accountable for breaking the laws that apply to all other insurers in Florida.
I suggest that we as Public Adjusters, simply encourage our clients to obtain legal assistance in filing breach of contract law suits. That documents the actions taken by Citizens or not taken by Citizens and most likely when each of these lawsuits is presented in a box full to each of the committee to modify citizens then then it will be more impressive than any white paper we could put together. But that requires the PA's to stand together. Remember, it was Citizens who came after us a profession. Since they feel we have no merit, I say show the law suits and tally up the settlements and lawyer fees and now you will have all attention including the governor.
Is there any recourse against the Adjuster?
There should be a some kind of protection for Citizens Property policyholders against an unqualified claim adjuster. I had my own experience with an unqualified adjuster from Citizens since day 1 when my house suffered severe water damages. The unqualified adjuster not only inadequately assessed the damages but refused to give us copies of his findings after I requested them twice. We truly believe his inadequate assessments caused us to suffer the loss amount of money necessary to fix our house. I have begged Citizens to please give us financial assistance immediately so we can repair our house and not prolong further damages. Everything fell on deaf ears..hardly no communication from them about our claims and the status and total lack of cooperation from Citizens. They dragged their butts and feet until the conditions of my house had gotten worse! We were forced to live under very hazardous environment in the house with molds, mildews, and asbestos. Citizens was extremely uncooperative throughout the two years and showed no concern for the well being of their customers. They even had called us for depositions and we felt as if we were being treated like criminals who committed a heinous crime All we wanted was the financial assistance due us so we could go ahead and fix our house and restore our lives to normalcy.We were just regular homeowner policyholders who faithfully paid the premiums when they were due.
Dealing with Citizens Property Insurance company was anyone's biggest nightmare and I will never understand why they never got in trouble for their horrendous and their extreme unfair practices. In the end , Citizens gave us little money, a mere pittance. ..not enough to fix our house. It was reported on the radio that Citizens is very wealthy and wondering why. Citizens is expensive and they payout very little to their customers. So sad and very pathetic situation for us policyholders who are in sincere dire need of insurance assistance!!
Nothing else we can do except move forward, fix the house the best we can with the little money we got from Citizens. I will never never forget the horrible, distressful, stressful, and very emotional experiences we endured with Citizens Property Insurance.
My Husband and I just got thrown to the wolves(Citizens Insurance)!!!!They are the only ones who will insure our restored old wood frame house and we are being charged 31/2 times our previous carrier. They are a non-regulated goverment run agency and have no one to answer to. Corruption...... I have been on the computer & phone all day searching for answers. we just want a fair rate for the dollor of coverage. Anyone out there that has a lead,please help direct us.