A Florida homeowner has filed a lawsuit against People’s Trust Insurance Company and Top Line Insurance Agency, alleging that her NFIP flood insurance policy was issued, confirmed, and later rescinded after Hurricane Milton caused damage to her property.
The case, filed on February 9, 2026, in the U.S. District Court for the Middle District of Florida, remains in its early stages. No court has yet ruled on the merits of the claims.
Dispute Over NFIP Waiting Period
According to the complaint, homeowner Svitlana Yaremchuk contacted Top Line agent Jose Rojas on September 27, 2024, seeking flood insurance with an immediate effective date.
The filing alleges that Rojas informed her the property qualified for the NFIP Map Revision One-Day Waiting Period Exception, rather than the standard 30-day waiting period typically required under the National Flood Insurance Program (NFIP).
On September 28, 2024, Yaremchuk signed a Standard Flood Insurance Application for:
- $250,000 in building coverage
- A full premium payment of $5,312
She subsequently received a declarations page listing an effective coverage date of September 29, 2024, at 12:01 a.m. The complaint further states that on October 7, the agent reconfirmed that the policy was active and in good standing.
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Hurricane Milton and the Flood Loss
On or about October 9, 2024, Hurricane Milton allegedly caused flooding at the insured property. Court filings state that the damage rendered the living areas, kitchen, bedrooms, bathrooms, and hallways unusable.
On October 23, a representative of People’s Trust reportedly confirmed that the policy remained in force and provided guidance on the claims process. However, the following day, the situation changed.
Policy Rescission After Loss
On October 24, People’s Trust allegedly notified Yaremchuk that the flood insurance policy had been issued “in error.” The insurer reportedly stated that the property did not qualify for the one-day NFIP waiting period exception and, therefore, should have been subject to the standard 30-day waiting period.
As a result, the claim was denied. The company then canceled and rewrote the policy after the reported loss, describing the issue as an administrative error, according to the lawsuit.
Legal Claims Filed
The complaint includes four counts:
- Breach of contract against People’s Trust Insurance Company
- Negligent procurement against Top Line Insurance Agency
- A claim under the Florida Deceptive and Unfair Trade Practices Act (FDUTPA) against both defendants
- Alleged violations of Florida Insurance Code Section 626.9541(1)(i), which prohibits misrepresentation of policy terms, benefits, or coverage
The plaintiff has demanded a jury trial and is seeking damages exceeding $75,000, plus interest, attorneys’ fees, and costs.
Broader Implications for NFIP Flood Insurance Carriers
While the dispute centers on one homeowner’s flood insurance claim, the case raises larger questions for NFIP-participating insurers and insurance agents in Florida.
Specifically, the lawsuit asks whether an insurer can rescind or void an NFIP policy after:
- Issuing a declarations page
- Accepting full premium payment
- Confirming coverage multiple times
- Reaffirming active status even after a named storm
The complaint further alleges that Yaremchuk did not take additional mitigation steps before Hurricane Milton because she reasonably believed valid flood insurance coverage was in place. How the court addresses that argument could have implications for how waiting period exceptions under the NFIP are applied and documented.
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Focus on Waiting Period Exceptions
Under standard NFIP rules, most new flood insurance policies are subject to a 30-day waiting period. However, limited exceptions, such as certain map revisions, can shorten that period to one day.
This case may place renewed attention on:
- How agents determine eligibility for waiting period exceptions
- How carriers verify underwriting compliance before issuing declarations
- What legal remedies are available when coverage is later disputed
For Florida homeowners, particularly in hurricane-prone regions, the outcome could influence how insurers handle flood policy issuance and post-loss rescission disputes.
As of now, the litigation remains pending, and no findings of fact or liability have been made by the court.
