Castle Key Indemnity: the denial record

FAIRWINDS CONSTRUCTION SERVICES ESTIMATED THE DAMAGE TO THE INSURED'S PROPERTY AT $277,275.89 (RCV)/$269,865.27 (ACV).

Subsequently, the insureds prepared a loss package in the amount of $233,527.26 needed to restore the property back to its pre-loss condition, plus weekly rental ALE expenses of $2,450.00 since the date of loss on September 26, 2024.

Then in a letter dated October 5th, 2023 the carrier notified the Insured that it had completed its investigation into the loss and denied the claim.

After reporting the claim, Castle Key retained an unqualified and biased field adjuster who has a financial relationship with Castle Key.

Please advise." Finally, on September 30, 2024, Mr. [name redacted] responded and stated, "The final determination letter is our estimate sent out." Castle Key never provided the Insureds with any further communication or explanation to support their effective denial of $121,801.17 of the Insureds'

Based on the insufficient adjustment of the claim as outlined herein, Castle Key on or about July 3, 2022, issued a wholly unsatisfactory valuations of $807.05, which did not exceed the deductible of $1,000.00.

After assessing the damage and the true scope of repairs, the public adjuster produced an estimate identifying $118,031.80 in covered damage to the dwelling.

The total actual cash value (ACV) value of Castle Key's estimate is $18,179.99 under Coverage A, and $882.89 O&L.

The insured has been compelled to obtain an independently adjusted estimate totaling in the amount of $84,928.64 that would be needed to repair the property back to its pre-loss condition.

CASTLE KEY INDEMNITY COMPANY, through its adjustment of the loss, submitted an estimate to the Insured which allegedly represented the actual cash value of the loss pursuant to the Policy Language, however the insurance company determined that the damage did not exceed the applicable deductible.

Restoration Control also took a plethora of photographs of the property before, during and after its services, and prepared an estimate of damages to put the property back into its pre-loss condition in the amount of $68,210.78.

To begin, prior to KEE's inspection, as per the contractual obligations imposed by Castle Key, the Insured retained a water mitigation company, who detected the presence of moisture with the affected bedroom and then tarped the roofing system at a cost of $7,377.05 for the mitigation efforts and $7,

After assessing the damage and the true scope of repairs, the public adjuster produced an estimate identifying $64,889.91 in covered damage to the dwelling.

Specifically, the Insured, with assistance from their public adjuster, submitted an estimate for $63,870.70, which is a fair and reasonable assessment for the repair/replacement of damages.

To remedy and/or cure this CRN, Insurer must immediately tender payment in the amount of $ 62,149.00 less any applicable deductible and prior payment to the Insured to complete the repairs for the Insured property.

Castle Key estimated the cost to return the property to its pre-loss condition in the amount of $11,871.23, before application of the deductible.

Castle Key Indemnity Company also routinely refuses to pay claims in full when it has the ability to do so, waits to see if its insureds contest their coverage determination, as was necessary here, and, only then, will it capriciously invoke appraisal.

Specifically, the Insureds, with assistance from their public adjuster, submitted an estimate for $48,038.21, which was a fair and reasonable assessment for the repair/replacement of damages.

Tender $42,963.46, representing the damages set forth in the estimate, less deductible, plus interest; 2.

ON DECEMBER 11, 2024, THE INSURED OBTAINED A FINAL INVOICE FROM ROOFING BY PINNACLE, LLC, CONFIRMING THAT THE TOTAL COST OF NECESSARY REPAIRS WAS $40,570.55, THE SAME AMOUNT ORIGINALLY ESTIMATED BY CASTLE KEY.

To remedy and/or cure this CRN, Insurer must immediately tender payment in the amount of $38,349.00 less any applicable deductible and prior payment to the Insured to complete the repairs for the Insured property.

Castle Key Indemnity Company also routinely refuses to pay claims in full when it has the ability to do so, waits to see if its insureds contest their coverage determination, as was necessary here, and, only then, will it capriciously invoke appraisal.

The Insured timely reported this damage to CASTLE KEY INDEMNITY COMPANY who assigned claim no. [redacted] to the loss that occurred.

Thereafter, an estimate was provided in the amount of $1,297.94, which was below the insured's deductible.

Castle Key Indemnity Company also routinely refuses to pay claims in full when it has the ability to do so, waits to see if its insureds contest their coverage determination, as was necessary here, and, only then, will it capriciously invoke appraisal.

Castle Key Indemnity Company also routinely refuses to pay claims in full when it has the ability to do so, waits to see if its insureds contest their coverage determination, as was necessary here, and, only then, will it capriciously invoke appraisal.

The Insured and Insured's representative provided the Insurance Company with all claim-related documents including an estimate to repair covered damages in the amount of $20,125.38 and other supporting documentation and/or information.

The insured provided the carrier with estimates as well as photographs of all the damages and an estimate in the amounts of $15,140.65 and $7,004.38.

To remedy and/or cure this CRN, Insurer must immediately tender payment in the amount of $1,806.96, less any applicable deductible and prior payment to the Insured, to complete the repairs for the Insured property.

To date, carrier has failed to issue the statutorily required coverage determination following the completed inspection and adjustment of the loss.

In order to cure this civil remedy notice, Castle Key must immediately tender $32,577.08 to "[name redacted] Godfrey and Cohen Law Group" less any prior payments and deductible.

Insurer failed to retain the experts needed to perform the inspection and needed to address the damage at issue and determine the repairs needed to restore the property.

CASTLE KEY can cure the violations contained herein by issuing a payment for all contractual damages owed, per estimates of $195,986.[address redacted]us interest, costs, and attorney's fees.

CASTLE KEY can cure the violations contained herein by issuing a payment for all contractual damages owed, per estimates of $49,198.[address redacted]us interest, costs, and attorney's fees.

Castle Key's handling and adjustment of the claim of loss reveals that it has failed to adopt or implement standards for the proper investigation of claims.

ALLSTATE INSURANCE COMPANY (CASTLE KEY) HAS BEEN GIVEN COMPLETE ACCESS TO THE INSURED PROPERTY, HAS NOTICE OF THE CONDITION OF THE PROPERTY THROUGH THEIR OWN INSPECTION AND PHOTOGRAPHS.

CASTLE KEY can cure the violations contained herein by issuing a payment for all contractual damages owed, per estimates of $65,095.[address redacted]us interest, costs, and attorney's fees.

To remedy this CRN, [name redacted] must immediately tender the full remaining amount of insurance benefits owed to the Insured for its services rendered in the amount of $26,041.43.

Additionally, neither this assessment nor any other supplemental damage resulting from this loss can be addressed as the three-year filing deadline from the date the hurricane made landfall has expired." This denial was wrong under the Policy since the "Loss Assessment" noted in the denial letter oc

At that time, we submitted a Letter of Representation (LOR) and a W-9, requesting a copy of the insured's policy jacket.

It is not entirely clear what Castle Key's claim determination was because it has failed to issue a written coverage determination.

ADDITIONALLY, UPON INFORMATION AND BELIEF, THE CARRIER NOR THEIR THIRD-PARTY CLAIMS ADMINISTRATOR PRODUCED ANY REPORT AND HAS ADMITTED IT HAS NOT RENDERED A COVERAGE DECISION.

The insurer failed to adopt proper standards of investigation and adjustment of losses or is otherwise not implementing those standards because the insurer is not acting with honesty and integrity.

CASTLE KEY HAS FAILED TO CREATE AND IMPLEMENT ADEQUATE GUIDELINES FOR THE PROPER INVESTIGATION, EVALUATION, AND HANDLING OF CLAIMS, LEADING TO SIGNIFICANT VIOLATIONS AS OUTLINED HEREIN.