Water Damage: $211,000

An owner of an estate rental property in the Coconut Grove District of Miami, Florida sustained damages to their property while it was tenant occupied.  The damages were the result of a loss of power which caused flooding from multiple air conditioning unit located throughout the home.

The flood caused extensive damage to the floors, walls, and custom kitchen. The extensive amount of water that was discharged from the air handlers caused extensive microbial (mold) growth due to lack of temperature control from the loss of power.

Initially, the insurance carrier offered to pay $16,000 for the total damages and refused to offer any amount of lost rental income to the insured.  The monthly rent that was being lost was $8,000.   Steven C. Kletzkin, PLLC was able to recover the policy limits available for loss rental income and by exercising the appraisal provision under the policy was able to expedite complete compensation for its client as quickly as possible. 

Upon concluding the appraisal, Steven C. Kletzkin, PLLC commenced a lawsuit for punitive damages against the insurance carrier for intentionally conducting their adjustment of the loss in bad faith.  This resulted in the insurance carrier paying the homeowner’s an additional $50,000 to settle the lawsuit and resolve the allegation of bad faith.