Zozo Investments LLC v. First Community Insurance Company

CourtCourt of Appeals for the Eleventh Circuit
DecidedApril 15, 2026
Docket25-12492
StatusUnpublished

This text of Zozo Investments LLC v. First Community Insurance Company (Zozo Investments LLC v. First Community Insurance Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eleventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Zozo Investments LLC v. First Community Insurance Company, (11th Cir. 2026).

Opinion

USCA11 Case: 25-12492 Document: 20-1 Date Filed: 04/15/2026 Page: 1 of 9

NOT FOR PUBLICATION

In the United States Court of Appeals For the Eleventh Circuit ____________________ No. 25-12492 Non-Argument Calendar ____________________

ZOZO INVESTMENTS LLC, BERTIE & NEEKA LLC, Foreign Limited Liability Companies, Plaintiffs-Appellants, versus

FIRST COMMUNITY INSURANCE COMPANY, a Florida corporation, Defendant-Appellee. ____________________ Appeal from the United States District Court for the Middle District of Florida D.C. Docket No. 2:24-cv-00939-JLB-KCD ____________________

Before NEWSOM, ABUDU, and ANDERSON, Circuit Judges. PER CURIAM: USCA11 Case: 25-12492 Document: 20-1 Date Filed: 04/15/2026 Page: 2 of 9

2 Opinion of the Court 25-12492

Zozo Investments LLC and Bertie & Neeka LLC (together, “Zozo”) own a property in Fort Myers Beach, Florida. The prop- erty was insured under the federal government’s National Flood Insurance Program and carried by First Community Insurance Company (First Community). After Zozo’s property sustained flood damage from Hurri- cane Ian, Zozo submitted a claim to First Community. First Com- munity initially issued Zozo a check for the damages but, a few months later, stopped payment and withdrew the funds from Zozo’s account. On March 13, 2023, First Community mailed Zozo a letter denying its claim. Zozo subsequently sent First Com- munity a sworn proof of loss to appeal the denial. On October 19, 2023, First Community mailed Zozo a second letter denying its claim. On October 4, 2024, less than a year after the second denial letter, but more than a year after the first, Zozo filed suit in federal district court to challenge First Community’s denial of its claim. The question is whether Zozo’s suit is time-barred by 42 U.S.C. § 4072. Under Section 4072, claimants have the right to chal- lenge the denial of “any claims for proved and approved losses” within one year after notice of the denial is mailed. 42 U.S.C. § 4072. The answer hinges on whether Zozo’s loss was “proved” under Section 4072 at the time First Community mailed the first denial letter, before Zozo submitted its sworn proof of loss. If so, then Zozo’s suit is time-barred because more than a year would have elapsed between First Community’s denial and the filing of Zozo’s complaint. If, however, a sworn proof of loss is required USCA11 Case: 25-12492 Document: 20-1 Date Filed: 04/15/2026 Page: 3 of 9

25-12492 Opinion of the Court 3

for a loss to be “proved” under Section 4072, then the statute of limitations was triggered only when First Community mailed its second denial letter, so Zozo’s suit can proceed. The district court adopted the first theory: Zozo’s loss was “proved” without a sworn proof of loss, so its suit is barred by Sec- tion 4072. The court dismissed Zozo’s suit with prejudice. After careful consideration, we AFFIRM. I A “Congress enacted the National Flood Insurance Act of 1968” (NFIA), “which authorized the establishment of the National Flood Insurance Program” (NFIP). Sanz v. U.S. Sec. Ins. Co., 328 F.3d 1314, 1316 n.1 (11th Cir. 2003). The NFIP “is managed by the Federal Emergency Management Agency” (FEMA). Id. The NFIP provides Standard Flood Insurance Policies (SFIPs) to property owners. FEMA uses private insurers—like First Community—to issue SFIPs and to process SFIP claims on FEMA’s behalf, under terms and conditions controlled the NFIA and its corresponding regulations. See id. The claims are paid out of the U.S. Treasury. Id. The NFIA grants FEMA the authority to “adjust” and “disal- low[]” “any claims for proved and approved losses covered by flood insurance.” 42 U.S.C. § 4072 (emphasis added). Further, “upon the disallowance by the Administrator of any such claim, or upon the refusal of the claimant to accept the amount allowed upon any such claim, the claimant, within one year after the date of mailing of notice USCA11 Case: 25-12492 Document: 20-1 Date Filed: 04/15/2026 Page: 4 of 9

4 Opinion of the Court 25-12492

of disallowance or partial disallowance by the Administrator, may in- stitute an action against the Administrator on such claim in the United States district court.” Id. (emphasis added). SFIP regulations mirror the NFIA’s one-year statute of limi- tations. For SFIP policyholders, claimants are permitted to sue in federal district court only “within one year after the written denial of all or part of the claim.” 44 C.F.R. § 61, App. A(2), Art. VII(O) (2021). Normally, this is (relatively) straightforward. The SFIP pol- icyholder must submit, within 60 days of the damage, a sworn “proof of loss” with a description of the loss, his interest in the dam- aged property, and detailed repair estimates, among other infor- mation. Id. § 61, App. A(2), Art. VII(G)(4). The insurer will also hire an insurance adjuster to investigate the claim, and, at the in- surer’s “option,” may choose to accept the adjuster’s report instead of the policyholder’s sworn proof of loss to corroborate the claim. Id. § 61, App. A(2), Art. VII(G)(7–9). With the sworn proof of loss (or the adjuster’s report, if it so chooses), the insurer accepts or de- nies the claim. If the insurer denies the claim, then the policyholder has one year to bring suit in federal court. Id. § 61, App. A(2), Art. VII(O); 42 U.S.C. § 4072. FEMA has occasionally modified these procedures in re- sponse to catastrophic hurricanes. After Hurricane Ian, FEMA is- sued an emergency bulletin that required private insurers to accept their adjuster’s report instead of requiring a signed proof of loss. FEMA, Bulletin No. W-22012, Memorandum Re: Hurricane Ian USCA11 Case: 25-12492 Document: 20-1 Date Filed: 04/15/2026 Page: 5 of 9

25-12492 Opinion of the Court 5

Claims Payment Process (Oct. 6, 2022), https://agents.floodsmart.gov/sites/default/files/bulletins/W- 22012/w-22012.pdf. “NFIP insurers must exercise the option to ac- cept their adjuster’s report to evaluate and pay a claim instead of a signed proof of loss.” Id. at 1 (emphasis added). If a policyholder “disagree[d] with the adjuster’s report,” however, he “may still sub- mit a signed proof of loss” with supporting documentation. Id. at 2. B First Community carried an SFIP that insured Zozo’s prop- erty at the time of Hurricane Ian.1 When Zozo’s property was damaged, Zozo submitted a claim to First Community without a sworn proof of loss in accordance with the emergency bulletin. First Community initially issued Zozo a check for $500,000, the full coverage under the policy. After Zozo deposited the check, First Community abruptly stopped payment and withdrew the funds from Zozo’s account in January 2023. On March 13, 2023, First Community issued its first letter denying coverage. First Commu- nity gave as its reason for denial that a different insurance com- pany, Citizens Property Insurance Corporation, had already paid Zozo an amount exceeding the pre-loss valuation of the property under the SFIP.

1 We recite the facts as pleaded by Zozo because, at the motion-to-dismiss

stage of the proceedings, we “accept[] the allegations in the complaint as true and constru[e] them in the light most favorable to the plaintiff.” Ironworkers Loc. Union 68 v.

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Bluebook (online)
Zozo Investments LLC v. First Community Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/zozo-investments-llc-v-first-community-insurance-company-ca11-2026.