Homeowner files $60K insurance claim after worker’s fall causes flood

Some homeowners go decades without ever having to file an insurance claim. For Clearwater resident Megan Layton, her first came just a week after she purchased a townhome in July 2020.

A simple project to add more insulation in her attic resulted in $60,000 worth of damage after a worker from the insulation company fell and broke a pipe connected to the fire sprinkler system.

“I’m sitting downstairs and I hear what sounds like a shower turning on,” Layton said. “I ran upstairs and (water) was just pouring out.”

This is the second installment of “Housing Horror Stories,” an occasional series exploring the trials and tribulations that Tampa Bay residents have experienced during a white-hot real estate market.

About 30 minutes passed before she was able to shut off the water. It had soaked through the ceiling, seeped into the floors on the third story and damaged her air conditioning unit.

The snafu prevented Layton and her family from moving into their new home for another six weeks while they waited for repairs to be made. What’s more, Layton said the insulation company – Daniel Insulation – dragged out the claims process and tried to avoid paying the full amount she was owed.

“They were trying to do it as cheap as possible and trying to say that we were trying to get a free renovation on their dime,” she said.

A representative from Daniel Insulation said he was not familiar with the incident and that the company is under new ownership as of April 2021.

As a first-time homeowner, Layton said hiring a public adjuster was a “saving grace.” for her.

Paul Handerhan, president of the Fort Lauderdale-based Federal Association for Insurance Reform said insurance contracts can be hundreds of pages long and filled with legalese. That makes it hard for the average person to advocate for themself with the insurance company.

“Hiring a public adjuster helps them move the claim forward and get everything they’re entitled to,” he said.”

A 2010 report from the state Office of Program Policy Analysis and Government Accountability found that policyholders who used public adjusters received payments that were 574% higher for non-catastrophic claims and 747% higher for catastrophic claims.

Layton was able to get everything she needed fixed without paying anything out of pocket aside from the $2,500 deductible.

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Though all the repairs were completed in eight weeks, Layton said the incident still haunts her.

Her first insurance provider pulled out of Florida in July 2021. When she went to look for a new one, every company she spoke with told her that because she had already made a significant claim, she would have to pay thousands of dollars more each month for the same coverage.

“Now the only insurance that’s affordable for us is Citizens,” she said, adding that her monthly payment has still increased by about $700.

Handerhan said that most Floridians have been impacted by the skyrocketing cost of insurance in this state. But those with prior claims can face greater hurdles.

“The more claims you have, the more your insurance can go up,” he said. “If you’ve had more than three claims within three years, a lot of companies won’t even underwrite you.”

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