Insurance Bad Faith in Florida: When Your Insurance Company Fails You

You pay your insurance premiums faithfully. When damage occurs, you expect your insurance company to honor the policy. But what happens when they do not? When an insurance company unreasonably denies, delays, or underpays a valid claim, they may be acting in bad faith — and Florida law provides remedies.

What Is Insurance Bad Faith?

Bad faith occurs when an insurance company fails to handle claims fairly and honestly. It is not simply a disagreement about the value of a claim — it is a pattern of conduct that puts the company’s financial interests above their contractual obligations to the policyholder.

Recognizing Bad Faith Tactics

Unreasonable Claim Denial

Denying a claim without a legitimate basis, misrepresenting policy language to justify denial, or failing to conduct a proper investigation before denying.

Excessive Delays

Taking weeks or months to acknowledge claims, schedule inspections, or issue payments without justification. Florida law sets specific deadlines (14 days for acknowledgment, 90 days for payment), and violating these timelines may constitute bad faith.

Lowball Settlement Offers

Making settlement offers that are clearly below the value of the claim, hoping the policyholder will accept out of desperation or exhaustion. Using outdated pricing, ignoring documented damage, or applying unreasonable depreciation.

Failure to Investigate

Conducting superficial investigations, sending unqualified adjusters, or refusing to reinspect when new evidence is presented. Insurance companies have a duty to conduct thorough, fair investigations.

Misrepresenting Coverage

Telling policyholders that certain damage is not covered when the policy language clearly provides coverage. This includes misrepresenting exclusions, conditions, and limitations.

Requiring Unreasonable Documentation

Demanding excessive or irrelevant documentation to delay the claims process or exhaust the policyholder.

Threatening Policyholders

Implying that filing a claim or hiring a public adjuster will result in policy cancellation or premium increases.

Florida Bad Faith Law

Florida Statute 624.155

This statute allows policyholders to bring a civil action against their insurer for bad faith claim handling. The process requires:

  1. Filing a Civil Remedy Notice (CRN): Before filing a lawsuit, you must file a CRN with the Florida Department of Financial Services, giving the insurer 60 days to cure the violation
  2. 60-Day Cure Period: The insurer has 60 days to pay the claim or otherwise resolve the dispute
  3. Bad Faith Lawsuit: If the insurer fails to cure within 60 days, you may file a bad faith lawsuit

Potential Damages

Bad faith claims can result in damages beyond the policy limits, including:

  • Full policy benefits owed
  • Extra-contractual damages
  • Attorney fees and costs
  • Consequential damages
  • Punitive damages in egregious cases

How a Public Adjuster Helps with Bad Faith Situations

While public adjusters do not file lawsuits, they play a critical role in bad faith situations:

Building the Documentary Record

A public adjuster creates a thorough, professional claim file that demonstrates the true value of the loss. This documentation is essential evidence if the claim escalates to a bad faith action.

Establishing the Timeline

By managing the claims process professionally, a public adjuster documents every deadline, communication, and response (or lack thereof) from the insurance company.

Demonstrating the Gap

The public adjuster’s comprehensive estimate, compared to the insurance company’s lowball offer, clearly demonstrates the disparity that may constitute bad faith underpayment.

Professional Communication

All communications between the public adjuster and the insurance company are documented, creating a paper trail that may be valuable in future proceedings.

Steps to Take If You Suspect Bad Faith

  1. Document everything: Save all communications with your insurer — emails, letters, phone call notes with dates and names
  2. Know the deadlines: Track whether the insurer is meeting Florida’s statutory deadlines
  3. Hire a public adjuster: Get professional documentation of your claim’s true value
  4. File complaints: Report the insurer’s conduct to the Florida Department of Financial Services
  5. Consult an attorney: For potential bad faith claims, an attorney experienced in insurance bad faith can advise on your options
  6. Do not settle prematurely: Accepting a lowball settlement may waive your right to pursue bad faith remedies

Greater Claims Consulting: Your First Line of Defense

At Greater Claims Consulting & Appraisal Inc., we help homeowners identify and respond to unfair insurance company tactics. While we are not a law firm and do not provide legal advice, our thorough documentation and professional advocacy often prevent claims from reaching the bad faith stage by compelling insurance companies to pay fair settlements.

If the insurance company refuses to act fairly despite our efforts, the documented claim file we create becomes valuable evidence for any future legal proceedings.

Do not let your insurance company take advantage of you. Call (877) 462-7036 for your free claim review.

Florida Statute 627.70131: Your Shield Against Insurance Company Abuse

Florida Statute 627.70131 is one of the most important consumer protection laws for insurance policyholders. It establishes mandatory timelines and standards that insurance companies must follow when handling property damage claims.

Key Provisions

14-Day Acknowledgment Rule: Within 14 days of receiving notice of a claim, the insurance company must acknowledge receipt and begin its investigation. This means they cannot ignore your claim or delay the process.

90-Day Payment Rule: The insurance company must pay or deny your claim within 90 days of receiving the initial claim or supplemental claim. Extensions are permitted only under extraordinary circumstances, and the insurer must provide written notice of any delay.

Investigation Standards: The insurer must conduct a reasonable investigation before denying a claim. Denials cannot be based on speculation or incomplete information.

Communication Requirements: The insurer must keep you informed about the status of your claim and respond to your inquiries in a timely manner.

What Happens When Insurers Violate These Rules

When an insurance company fails to comply with F.S. 627.70131, it may:

  • Face regulatory action from the Florida Department of Financial Services
  • Be subject to penalties and fines
  • Create grounds for a bad faith claim under F.S. 624.155
  • Be required to pay interest on delayed payments

Protecting Your Claim: Documentation Best Practices

The strength of your insurance claim depends on your documentation. Follow these best practices:

Photo and Video Documentation

  • Take photos in natural lighting whenever possible
  • Capture wide-angle shots showing the full scope of damage
  • Take close-up photos of specific damage points
  • Record video walk-throughs narrating the damage
  • Include timestamps (most phone cameras do this automatically)
  • Store copies in the cloud as backup

Written Records

  • Keep a claim diary noting every interaction with the insurance company
  • Record dates, times, names, and summaries of phone conversations
  • Save all written correspondence (emails, letters, text messages)
  • Retain copies of everything you submit to the insurance company

Financial Records

  • Save all receipts for emergency repairs and mitigation
  • Collect contractor estimates for permanent repairs
  • Document temporary living expenses with receipts
  • Keep records of lost wages if you missed work due to property damage

Before-and-After Evidence

  • Gather pre-loss photos of your property (from real estate listings, social media, family photos)
  • These photos establish the pre-loss condition and counter “pre-existing damage” arguments
  • Compare to post-loss photos to demonstrate the extent of damage

The True Cost of Handling Your Claim Alone

Many homeowners attempt to handle their insurance claim without professional help. While this is their right, it often results in significantly lower settlements. Consider the reasons:

  • Insurance adjusters are trained professionals who negotiate claims daily
  • Policy language is complex and easily misinterpreted
  • Xactimate estimates require expertise to prepare and interpret
  • Insurance company tactics are difficult to recognize without experience
  • The emotional stress of property damage impairs negotiation effectiveness
  • Time spent on your claim is time away from your family and work

A public adjuster handles all of this while you focus on what matters most — your family and your recovery.

Take Action Today

Every day that passes after property damage can weaken your claim. Evidence deteriorates, deadlines approach, and the insurance company’s position hardens. Contact Greater Claims Consulting & Appraisal Inc. today for a free claim review.

Call (877) 462-7036 — We fight for homeowners, not insurance companies.