Kelley Kronenberg Partner Kathrine Conroy successfully resolved a first-party property claim through informal negotiations in Seminole County, Florida, on behalf of the firm’s insurance carrier client.

Plaintiffs reported a Hurricane Helene loss and sought replacement of a large tile roof and extensive interior repairs to a property of more than 7,000 square feet, insured for more than $1 million. With an estimated exposure of approximately $300,000.00, plus fees and costs, the claim was a significant one.

After investigation, the matter was determined to be totally fraudulent. Discovery directed to prior insurers revealed that the insured had made multiple earlier claims on the same property with different carriers, none of which were ever repaired: a 2017 Hurricane Irma roof claim and a 2022 water damage and interior claim. Due to a clerical error, one insurer had filed the Irma claim under the policy for the insured’s rental property. The photographs and estimate, however, clearly depicted the residence and not the rental. The insured took advantage of the error and made a subsequent claim for damage another insurer had already paid for. The 2017 photographs, which show a tarped roof and cracked tile, make clear the insured had allowed someone into the residence to inspect it.

Kathrine built the defense on these prior claims. The insured testified repeatedly that the Irma claim concerned the rental property, even when confronted with the estimate and photographs of the residence. The carrier was prepared to move for summary judgment on the basis of fraud and misrepresentation.

Rather than proceed to summary judgment, the insured paid the carrier to resolve the matter. Had the carrier prevailed, the insured would also have owed fees and costs because of an expired proposal for settlement. The result protected the carrier from substantial financial exposure and sent a clear message about the cost of misrepresenting a claim.

Learn more about the firm’s First-Party Property and Coverage Division: click here.

Read our First-Party Property newsletter here.