Just as another hurricane hit Florida, the child of a central Florida woman is litigating a claim from a previous storm—Hurricane Ian in 2022. This time, though, the plaintiff claims not only breach of contract by a Florida property insurance company, but that the insurer’s lack of repairs to the home caused the death of a 58-year-old policyholder.

The wrongful death lawsuit charges that Deerfield Beach-based People’s Trust Insurance Co. and its contracted repair team did not repair the Winter Garden home as needed, forcing the woman to live with hazardous black mold for seven months.

The mold reportedly exacerbated Linda Villarreal’s auto-immune disease and respiratory condition, triggering her death in July 2023, alleges the complaint, filed in Broward County Circuit Court.

People’s Trust, led in part by its chief operating officer, former Florida Insurance Commissioner Tom Gallagher, has not yet filed an answer to the lawsuit nor a motion to dismiss.

“Unfortunately, People’s Trust cannot comment on pending litigation at this time,” said Amy Rosen, chief marketing officer for the insurer.

People’s Trust as late as 2023 was listed at the 18^th-largest property insurer in Florida, with some 96,000 policies in force. It has gained attention for offering policy endorsements that ask insureds to agree to let the carrier’s preferred contractors handle restoration work after a claim.

That model has been shown to lower premiums but it can also lead to complications and litigation. One Florida insurance executive said early this year that the approach forces the insurer to become a construction company, with all the pitfalls that can bring.

Lawsuit complaints tell only one side of a story, and insurance defense attorneys have said claims in unanswered suits, especially in Florida’s highly charged litigation environment in recent years, can be exaggerated. The plaintiff’s role in causing the dispute often is not explained in the initial filings.

The plaintiff’s attorney in the Villarreal case said last week that the circumstances show that People’s Trust and its contractors failed to protect the vulnerable policyholder.

“She essentially had to harass them to address the mold problem, and this went on for months and months,” said Jesse Diaz, attorney with the Quattrochi, Torres & Taormina law firm in Casselberry, Florida.

The complaint contends that one day after Hurricane Ian blew its way across Florida in September 2022, Villarreal notified People’s Trust about damage, including leaks and water intrusion. A month later, the insurer invoked its “option to repair,” using its preferred contractor—its Rapid Response Team.

“When defendant invoked its ‘option to repair,’ it created an additional fiduciary duty to protect and repair the insured property, and ultimately protect Villareal from foreseeable danger,” the complaint reads.

HomeWell Services Inc. performed a mold inspection at the home and found multiple areas with black mold, the lawsuit said. But the inspection report reportedly was not shared with the homeowner until later, after she requested it.

Villarreal then asked for additional living expenses so she could move out while the repair work was under way. People’s Trust declined, the complaint contends. When the remediation team learned of the woman’s respiratory issues, the team refused to or was unable to perform the work, the suit notes.

At one point, People’s Trust’s loss estimate showed more than $44,000 was needed for mold remediation and cleaning in the house, including the use of air scrubbers and containment barriers.

Instead of continuing with its preferred contractor, though, the carrier offered $10,000 on the claim – the policy limit on mold damage, Diaz explained. Villarreal said “no,” hoping the insurer would move ahead with its preferred contractor to fully rid the home of fungi and make repairs.

Without a resolution, Villarreal remained exposed and succumbed to the detrimental effects of the mold, the suit contends. The U.S. Centers for Disease Control and Prevention notes that immune-compromised people and people with chronic lung disease may sustain infections in their lungs from mold. The Cleveland Clinic’s disease website and WebMD site report that severe or fatal illness from black mold is very rare but people with weakened immune systems can suffer serious lung infections.

The lawsuit was filed by Villarreal’s only child, Robert Zehr, now known as Allison. Because of Villareal’s death, Zehr has suffered mental stress and anxiety and had to be hospitalized for a while due to a panic attack, the suit reads.

“Ms. Villareal’s wrongful death is the actual and proximate cause of plaintiff’s physical, mental and monetary injuries,” the complaint reads.

The complaint does not ask for specific damage amounts.

This article was originally published by Insurance Journal. Reporter Will Rabb is the Southeast editor of Insurance Journal

Disclosure statement: Insurance Journal Southeast editor Rabb, a Florida resident, is a policyholder with People’s Trust.