Typtap: the denial record

The Insureds engaged a construction company, Everglades Construction Group, who provided a proposal of $673,846.00 to rebuild their home.

Therefore, demand is hereby made as follows: Estimate $379,146.61 Less Prior Payments $12,845.82 Less Deductible $21,420.00 TOTAL $344,880.79 The concept of insurance is that the insurer will investigate and grant timely and prompt indemnity or security against a contingent loss.

The lowball estimate totaled only $7,362.76, and resulted in a payment of just $6,362.76 for the substantial loss.

TYPTAP INSURANCE COMPANY prepared an estimate for the cost of the damages to the PROPERTY were $66,002.66 (Replacement Cost Value) and $60,756.97 (Actual Cost Value) based on Arpke-Lone's scope of damage.

The insured has been compelled to obtain an independently adjusted estimate totaling in the amount of $251,862.12 that would be needed to repair the property back to its pre-loss condition.

In total, the estimate recognizes $172,125.36 in repairs necessary to restore the Property to its pre-loss condition.

The adjuster dramatically undervalued the property, writing an estimate for only $11,212.77, which ultimately resulted in a coverage decision of no payment, as TypTap asserted that the covered amount was below the deductible.

The field adjuster calculated the replacement cost value of the damage under the dwelling coverage at $8,120.86 and the replacement cost value of the damage under the other structures coverage at $534.65.

Despite Insureds providing Carrier with a detailed estimate, Carrier failed to pay Insureds the amount necessary to repair/replace the damaged property, less the applicable deductible.

Instead of addressing these deficiencies, TypTap responded on December 18, 2024, with a lowball offer of $12,000.00 less than 8% of the insureds' estimated loss of $152,259.00.

Public Adjuster, later that day produced an estimate valuing the damages at $147,051.02 in actual cash value and provided a wind report indicating wind speeds of 72 miles per hour from Hurricane Nicole.

However, when the Insurer conducted its inspections of the insured property, the Insurer's representatives failed to conduct thorough and adequate investigations, or the representatives intentionally ignored the damage observed and failed to make truthful and unbiased reports of the facts after inve

As a result of the review, TypTap issued claim decisions for the loss claiming that the property had minor damage that was reparable for only $14,155.12 despite having roof damage, window damage, lanai damage, and interior water damages from the storm.

TYPTAP'S REPORT PROVIDED FOR AN ESTIMATE OF DAMAGES TO THE DWELLING AND OTHER STRUCTURES AT $18,559; WHILE AAA'S PUBLIC ADJUSTER ESTIMATED DAMAGES TO THE PROPERTY AT $130,359.

United Damage Adjusters, on behalf of the Insureds, forwarded said estimate which fully detailed the Insureds' damages and total $123,408.65.

The insured has been compelled to obtain an independently adjusted estimate totaling in the amount of $118,243.21 that would be needed to repair the property back to its pre-loss condition.

The Insurer inspected the Property and prepared a woefully deficient initial estimate that failed to address the full scope of damages and repairs necessary to return the Property to its pre-loss condition.

Typtap failed to properly adopt and implement standards to open new claims, properly assign a claim number to a matter reported to them, and conduct an adequate investigation regarding their Insured's property.

After assessing the damage and the true scope of repairs, the public adjuster prepared an estimate identifying $88,747.74 in covered damage to the dwelling and $213.57 in damage to contents.

However, the Insurer wrongfully determined that it would only require $12,271.25 to restore the insured property to its pre-loss condition.

After assessing the damage and the true scope of repairs, the public adjuster produced an estimate identifying $78,737.82 in covered damage to the dwelling.

TypTap Insurance company ("Carrier") has not attempted in good faith to settle the insured's claim when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for their interests.

Typtap valued the Insured's damages at $1,836.26, less than the $2500 deductible, and thus no payment was made to the Insured.

An estimate for repair of all damages with respect to the Insureds' claim was prepared on their behalf for $58,900.86 and was submitted to TypTap.

TypTap initially made a low-ball coverage decision that broadly ignored the damage sustained to the Property valuing the damage at $4,216.08 after the application of the deductible.

After receiving a roofing report the Insurance Company did open up coverage on January 12, 2024, but failed to fully indemnify their insured from loss, issuing a payment of only $2,207.03.

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 $35,412.67, and other supporting documentation and/or information.

On January 30, 2025, ILGPA sent a letter to the Insurer based on their review of the denial letter advising that there is a material inaccuracy regarding the stated cause of loss.

TypTap initially made a low-ball coverage decision that broadly ignored the damage sustained to the Property valuing the damage at $6,307.11 after the application of the deductible.

Carrier subsequently underpaid the claim on March 11, 2024, paying only $1,136.57 after deductible.

Therefore, to cure the defects outlined in this Civil Remedy Notice, the carrier must: 1.) Pay the complete covered loss in the amount of $79,358.19; 2.) Pay the statutory interest on the amount of unpaid damages from the date of loss to the date payment is finally made.

During the course of Typtap's investigation, the Insured made the property available for inspection, provided facts and information surrounding the loss, and complied with Typtap's adjustment of the claim.

In order to cure this civil remedy notice, Typtap must immediately acknowledge in writing that the roof damages claimed by the Insureds were caused by flood from Hurricane Ian and that it acknowledges that $75,889.00 is due and owing to the Insureds.

TypTap Insurance Company failed to pay the insureds' claim under the homeowner's insurance policy when, under all of the circumstances, it could and should have done so, had it acted fairly and honestly and with due regard for the interests of insureds.

The Insureds timely presented a claim under the Policy to the Insurer for damages sustained at the Risk due to a sudden and accidental loss, to wit: Tropical Storm Eta.

However, Insurer failed to promptly acknowledge receiving claim communication, they also failed to pay or deny the claim within 90 days.

In consideration of the premium paid to it by the Insured, Typtap Insurance Company issued to the Insured an insurance policy, Policy no. [redacted] (the "Policy").

The carrier hired a biased adjuster who, within same day of inspecting the loss, approved only 6 shingles.

As an alternative cure option, the insurance company may cure the allegations giving rise to this notice by tendering a check in the amount of $40,018.24 minus prior payments and applicable deductible within the 60-day cure period, jointly payable to [name redacted] YOUR PUBLIC ADJUSTER, INC.

It is clear by the language of the carrier's denial letter that it did not determine what caused the damages observed at the property.

Documentation in the form of photographs, estimates, and declarations that the roof required replacement as a result of the Loss, were also provided in support of same.

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 insurance company has failed and/or refused to thoroughly, accurately, and completely investigate and evaluate the claim of loss of its insured and has failed to pay for covered damages in breach of the insurance policy.

(k.) INSURER, as a general business practice, opens coverage for a limited amount, typically at or around the deductible, for the purpose of availing itself to the appraisal provision of the policy, whereby, it treats an Insured who is represented different from unrepresented Insureds.

Therefore, to cure the defects outlined in this Civil Remedy Notice, the carrier must: 1.) Pay the complete covered loss in the amount of $33,982.38; 2.) Pay the statutory interest on the amount of unpaid damages from the date of loss to the date payment is finally made.