Top Briefings:
- Condo association claims insurer deliberately stalled a $2 million hidden rain damage payout.
- Allegations include insurer attempting to expire the statute of limitations to evade payment.
- Condo owners seek jury trial, attorney fees, and hefty penalties for alleged bad faith.
By Samuel A. Lopez – USA Herald
In a significant legal skirmish unfolding in Seattle, The Florentine Owners Association has launched serious accusations against Affiliated FM Insurance Co. (AFM), alleging that the insurer is intentionally dragging out its investigation into a substantial hidden damage claim, potentially to avoid paying over $2 million in repairs.
According to the complaint filed on March 6, 2025, in Washington federal court, the condominium owners allege that AFM is deliberately stalling, presumably to run out the contractual limitations period set within their insurance policies.
The association discovered significant concealed rain damage in October 2023, promptly notifying AFM as per the required protocols. Yet, in what the association describes as a blatant violation of their insurance contract, AFM has yet to provide any formal claim determination—a delay spanning 18 months, despite a clear contractual requirement of just 30 days, a delay that the HOA says constitutes bad-faith claims practices.
The complaint argues “A violation, if any, of one or more of the Washington claim handling standards set forth below is a breach of the duty of good faith, an unfair method of competition, an unfair or deceptive act or practice in the business of insurance, and a breach of the insurance contract. AFM’s conduct violated Washington claim handling standards.”
This claim isn’t just about delayed insurance paperwork; it underscores a potential strategy by insurers to sidestep accountability by running down the clock, a practice that has riled many property owners nationwide.
In their strongly worded complaint, the condo association asserts, “AFM refused to enter into a tolling agreement with the association in an attempt to expire the contractual suit limitations provision in the AFM policies, and its investigation of the association’s claim is completely illusory and pre-determined.”
