A Florida house owner’s federal lawsuit accuses a significant insurer and mortgage servicer of mishandling a hurricane declare, blocking repairs, and failing to observe federal guidelines.
In a criticism filed within the US District Court docket for the Southern District of Florida, Johna Swanfeld alleges that Residents Property Insurance coverage Company and Freedom Mortgage Company mishandled her insurance coverage declare and mortgage servicing after Hurricane Milton struck her Fort Pierce residence in Might 2024. The swimsuit describes delays, denied restore applications, and mounting monetary and emotional pressure.
Swanfeld’s difficulties started after Hurricane Milton left her residence at 117 Gotham Drive with vital water and structural harm. A complete inspection on January 18, 2024, had recognized pre-existing vulnerabilities, and a follow-up inspection in Might 2024 documented the hurricane’s impression. Based on the criticism, Swanfeld filed a declare with Residents Property Insurance coverage, however encountered a collection of obstacles.
The lawsuit alleges that Residents delayed processing the declare, failed to supply clear details about restore choices, and denied Swanfeld entry to the Managed Restore Program. The criticism states that Swanfeld was supplied with incomplete particulars about mitigation steps and was left to navigate unclear necessities. It additional alleges that Residents’ representatives supplied inconsistent steerage, required pointless documentation, and didn’t coordinate successfully with contractors or Freedom Mortgage.
Central to the dispute is the dealing with of insurance coverage proceeds. The criticism asserts that Residents issued insurance coverage funds, however the funds have been positioned in an escrow account managed by Freedom Mortgage. Swanfeld alleges that Freedom Mortgage didn’t launch the funds in a well timed method for repairs, leading to additional property deterioration, elevated prices, and continued mortgage obligations whereas the house remained uninhabitable.
The criticism references HUD Handbook 4000.1 and 24 C.F.R. § 203.377, which require mortgagees to protect and defend the property and talk with debtors about repairs. Swanfeld alleges that each Residents and Freedom Mortgage didn’t adjust to these necessities, together with by not coordinating repairs and never releasing insurance coverage funds as required.
Swanfeld additionally alleges that Residents’ representatives made statements characterizing her as uncooperative and aggressive, complicating her efforts to resolve the declare. The criticism cites failures to adjust to the Actual Property Settlement Procedures Act (RESPA) and the Honest Housing Act, highlighting the broader regulatory context for the insurance coverage and mortgage industries.
Swanfeld seeks damages of $115,000, together with $75,000 for property harm and $40,000 for misplaced earnings, in addition to compensation for enterprise interruption, lack of use, and different hardships. The criticism doesn’t request a jury trial. These allegations stay unproven, and the case is pending earlier than the courtroom.
For insurance coverage and mortgage professionals, this case highlights the operational and compliance dangers that may come up when catastrophe claims will not be dealt with correctly. As extreme climate occasions turn out to be extra frequent, Swanfeld’s case underscores the stakes for insurers and mortgage corporations in guaranteeing well timed and coordinated responses to property claims.
