Complaint Review: Gulfstream Property and Casualty Insurance Company - Sarasota Florida

PREDATORY SCAM OPERATION.  If you’re considering a homeowner policy from Gulfstream Property and Casualty Insurance Company, or are a current policy holder not yet in a claim situation, I strongly recommend you find a different carrier with a reputation for acting in the interest of their policy holders.  If you find yourself in a claim situation as a Gulfstream policy holder, I strongly recommend that your first communication be with an experienced public adjuster or property insurance attorney.

Based on my claim experience with Gulfstream Property & Casualty Insurance, in my opinion they are an unethical and predatory carrier who will exploit policy holders’ state of shock and confusion resulting from the trauma of catastrophic natural disaster.  At a time when we were desperately in need of help, Gulfstream sought to further victimize my family in the interest of enhancing their profit margin. 

Our home of 21 years was destroyed by Hurricane Michael on October 10, 2018.  The storm completely removed two-thirds of the entire roof structure, and the Category 5 hurricane winds, wind-driven salt water, and torrential rain destroyed the entire interior of the house.  Never having had a prior homeowner’s insurance claim of any kind, our thought process was that we would work in good faith with our insurance carrier and rely on them to act in our interest……for many years that’s what we had paid them for.  That was a major mistake, and one we will never make again.

From day 1 of our claim, Gulfstream desk adjusters were condescending toward us, disrespected, and ignored us.  They immediately went into a “transmit only” mode of 1-way communication.  Throughout the claim process they refused to acknowledge receipt of or respond to our written information, questions, or concerns. 

When we expressed concern over the lack of routine 2-way communication, we received a condescending lecture from the desk adjuster stating “there is no acknowledgement - we have already discussed this”…….as if they were addressing an unruly child.  At the same time if they required our acknowledgement or response for any reason, they would become rudely aggressive – repeatedly calling and emailing until we responded. 

Then once satisfied, they would again go silent……refusing to acknowledge or respond.  In my opinion, this is a deliberate practice on Gulfstream’s part aimed at maintaining deniability of claim-related communication from policy holders.

Every instance of communication from Gulfstream was accompanied by a threat regarding “mitigation”…..our “failure to take reasonable measures to mitigate further damage could result in denial of coverage”.  There was never any regard whatsoever for the fact that our roof was completely gone…..there was almost nothing left to tarp, and everything inside the house was already destroyed. 

Gulfstream sent a so-called “independent” adjuster from Compass Adjusting to our property about 1 week after the hurricane for the purpose of estimating damages.  This adjuster came with an agenda to produce a gross under-representation of actual damages.  The “independent” adjuster advised me to contact Gulfstream’s preferred vendor for mitigation services.  This advice came with the often-repeated threat to deny coverage if I didn’t mitigate further damage – despite the fact that everything was already destroyed. 

I contacted Nexxus Solutions Group per advice from the “independent” adjuster, and about 2 weeks after the hurricane they sent a contractor – Microtech Solutions to our property to provide “mitigation” services.  Microtech removed 7 trees already felled by the storm - placing the sections in our front yard by the street, and placed tarps on the little remaining roof structure…despite the fact that everything inside was already destroyed. 

During this time the Microtech representative mentioned during a phone call that he had submitted a proposal to Gulfstream to perform a “pack-out” of house contents, and “tear-out” of the house interior.  We had no knowledge of the proposal and when I asked what the proposal looked like, the Microtech rep responded “about $40,000”…….unbelievably outrageous.  I immediately expressed my concern in writing to the Gulfstream desk adjuster – stating that I had not seen the proposal and asked that we “not commit a significant portion of our policy coverage until there’s a comprehensive plan to make our home whole again”. 

As was consistently the case, the Gulfstream desk adjuster completely ignored my concerns without acknowledgement or response.  As events would later bear out, the Gulfstream desk adjuster did precisely what I specifically asked her not to do, and did so without our knowledge or participation whatsoever. No one from Gulfstream or Nexxus Solutions Group/Microtech Solutions ever informed us as to the outrageous cost of their work, why they determined it to be necessary, or from which policy coverage it would be paid……..until Gulfstream had already paid Nexxus Solutions/Microtech about 5 months later.

In December 2018 we received initial insurance settlement payment for dwelling coverage.  At that point we engaged an established local licensed construction contractor.  Our contractor assessed the damages to our home and advised us that the remaining structure was substantially damaged and we should not attempt to salvage it…….they advised us that our home was a total loss.  The basis of this advice was that the remaining exterior wall structure could not be safely relied upon to resist future hurricane-induced roof uplift. 

The assessment of damages by our public adjuster estimated cost of repairs to be 70% more than the initial settlement payment for dwelling coverage, and 16% more than our coverage limit.  The dwelling was therefore determined to be a constructive total loss.  In March 2019, about 5 months after the hurricane, we received notification from Gulfstream that they had paid their preferred vendor Nexxus Solutions Group/Microtech Solutions nearly $57,000 from our dwelling coverage, which was 23% of our dwelling coverage – and stated that the “cost to repair our home is expected to exceed the limits of coverage”. 

It was not until this time that we were given any information whatsoever regarding cost of work done by Nexxus Solutions Group/Microtech Solutions, or from which insurance coverage it would be paid.  By this time our home had been determined a total loss – therefore most of the work by Nexxus Solutions Group/Microtech Solutions was a complete waste. 

By willfully excluding us (the policy holder) from Gulfstream’s decision to authorize work by THEIR PREFERRED VENDOR, Nexxus Solutions Group/Microtech Solutions, Gulfstream forcibly took away our right to make personal decisions that Would profoundly affect the future of our lives, and made it financially impossible for us to make our home whole again.  This predatory and unethical practice by Gulfstream is offensive and wrong on a deeply personal level.  IN MY OPINION THIS SHOULD BE A CRIMINAL VIOLATION.

In my opinion it was Gulfstream’s strategy to siphon off a staggering portion of our dwelling coverage to their preferred predatory vendor Nexxus Solutions Group/Microtech Solutions via a “manufactured” invoice for unnecessary “mitigation” services without our knowledge or participation - so they could declare our dwelling coverage liquidated, and then wash their hands of our dwelling claim.  There is no other way to explain the fact that Gulfstream willfully withheld from us all information regarding the proposal they received from Nexxus Solutions Group/Microtech Solutions, and which insurance coverage it would be paid from – until they had already paid the invoice totaling 23% of our dwelling coverage. 

Despite their decision to treat our claim as a total loss after they had squandered 23% of our dwelling coverage, Gulfstream then continued to put the unimaginable burden on us to compile a detailed inventory of damaged household items for our contents claim – including replacement value, age, and place/date of purchase of every individual item. 

In my opinion it is beyond abhorrent that Gulfstream would inflict this impossible burden as a strategy to deny coverage of dwelling contents - knowing full well the state of emotional and physical distress of catastrophic disaster victims, and knowing full well that the entire interior of our home was completely destroyed.  In my opinion this amounted to Gulfstream going in for the final “kill shot” regarding our claim…….and our ability to recover.

Some may suggest that Gulfstream’s actions were not willful, but rather the result of a spike in claims workload following a large-scale disaster.  I reject that explanation.  Our lives were destroyed versus Gulfstream experienced an increase in workload….they should figure it out.  Gulfstream is in the business of responding to large-scale disasters.

Based on handling of claims from other Hurricane Michael victims we’re aware of, there are insurance carriers who genuinely act in the interest of their policy holders, subject to policy terms and limits…….Gulfstream IS NOT one of those carriers.  Gulfstream is certainly not the only predatory and unethical carrier. 

It’s vitally important that as policy holders we share our experiences with these carriers so that others might avoid being further victimized, and the carriers may begin to understand that predatory practices will not support long-term stability of their business.