Tred R. Eyerly | Insurance Law Hawaii
The Eleventh Circuit reversed the district court’s finding that the insurer had properly rejected the insured’s supplemental claim. Great Lakes Ins. SE v. Concourse Plaza A Condomiium Association, Inc., 2024 U.S. App. LEXIS 8958 (11th Cir. April 15, 2024).
On September 10, 2017, Hurrican Irma struck Concourse Plaza’s building, causing wind and water damage. Great Lakes sent a adjuster to inspect the property. The adjuster found damages to the building were $31,035.21, well below the policy’s deductible. Accordingly, Great Lakes advised that the net amount of the claim was zero.
Concourse Plaza responded on September 4, 2020, just shy of three years after the cliam accured. Concourse Plaza disputed the damages estimate, but did not include a competing estimate. The letter said an estimate was being prepared and Great Lakes should consider the letter as notice of the intent to pursue additional benefits for the loss pursuant to the policy’s notice provisions and Florida law.
On April 8, 2021, Concourse Plaza formally submitted a proof of loss statement, providng a damages estimate of $6,403,728.62. Concurse Plaza also invoked the appraisal remedy. Concourse Plaza leter lowered its estimate to $3,276,080.50 while maintaining its appraisal demand.
Great Lakes filed suit seeking a declaratory judgment that Concourse Plaza’s September 2020 letter did not constitue a valid notice of a supplmental insurance claim under the Florida statute requiring notice within three years of the hurricane making landfall.
The district court held that the Florida statute required an insured’s notice of a supplemental claim to inlcude an estimate of claimed damages. Therefore, Concourse Plaza had failed to provide a qualifying notice within three years. Summary judgment was awarded to Great Lakes. Concourse Plaza appealed.
On appeal, the court noted that Concourse Plaza sought additional recovery for lossess from the same hurricane as the original claim. Further, Great Lakes conceded that the policy by itself did not impose a requirement to provide an estimate of damages. Concourse Plaza’s September 2020 letter therefore qualifed as a notice of a supplemental claim under the statute. Because it was sent within three years of the date Hurrican Irma made landfall, the statute was satisfied.
The district court’s grant of summary judgment to Great Lakes was reversed and the matter was remanded.
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