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Individuals who owned residential property in Florida that Security First Insurance Co. insured and filed a claim for property damage caused by Tropical Storm Eta in November 2020 may qualify to receive a cash payment from a class action settlement.
Security First Insurance Co. agreed to pay $350,000 to resolve a class action lawsuit alleging it improperly applied higher hurricane deductibles instead of lower “all-other-perils” deductibles to property damage claims related to Tropical Storm Eta.
Who are the class members?
Class members must meet all of the following criteria:
- They owned residential real property in Florida that Security First Insurance Co. insured between Nov. 8 and Nov. 12, 2020.
- They made a claim for property damage related to Tropical Storm Eta.
- Their insurance policy had a hurricane deductible that was higher than the all-other-perils deductible.
- Security First applied the hurricane deductible to their claim.
The settlement administrator identified eligible class members using Security First’s records.
How much can class members receive?
Pro rata payment: The total settlement fund is $350,000. After deducting the costs of administering the settlement, the settlement administrator will distribute the remaining funds among eligible class members.
The settlement uses a pro rata distribution method. This means the settlement administrator will calculate each class member’s payment by determining the difference between their hurricane deductible and their all-other-perils deductible. It will then use the sum of all class members’ deductible differences to determine each person’s share of the net settlement fund. Those with a higher deductible difference will receive a higher payment, and those with a lower deductible difference will receive a lower payment.
The settlement administrator may reduce payments if the total claims exceed the net settlement fund.
No claim form needed to receive payment
Eligible class members do not need to file a claim form or submit any documentation to receive their payment.
The settlement administrator will automatically mail checks to all eligible class members after the court grants final approval of the settlement. Class members who prefer to receive their payment electronically can visit the settlement website and follow the instructions using the web registration code provided at the top of their email notice or on the front left side of the mailed postcard.
$350,000 settlement fund breakdown
The $350,000 settlement fund covers:
- Claims administration costs: $20,000
- Attorneys’ fees, expenses or service awards: To be determined
- Service awards to representative plaintiffs: $7,500 each ($15,000 total)
- Payments to class members: Remaining funds
Important dates
- Deadline for exclusion: Dec. 31, 2025
- Final approval hearing: Jan. 30, 2026
When is the Security First deductible settlement payout date?
The settlement administrator will issue payments no later than 30 days after the court resolves all appeals or 75 days after the court grants final approval to the settlement, whichever is later.
Why did this class action settlement happen?
This class action lawsuit alleged Security First Insurance Co. applied higher hurricane deductibles to property damage claims from Tropical Storm Eta instead of the lower all-other-perils deductibles. This practice reportedly resulted in higher out-of-pocket costs for policyholders.
Security First denies any wrongdoing but agreed to settle to avoid the cost and uncertainty of continued litigation.
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