Bad Faith Attorney & Property Insurance Guide – Orlando, Florida

Introduction: Orlando Homeowners & Property Insurance Challenges

From the shimmering shores of Lake Eola to the tree-lined streets of Winter Park, Orlando, Florida homeowners know that owning property in Central Florida comes with year-round weather risks. Tropical storms spiral up the peninsula, afternoon lightning strikes are routine, and sudden sinkholes occasionally disrupt entire neighborhoods. For most Orlando homeowners, a property insurance policy is the single greatest safety net protecting everything they have worked for. Unfortunately, insurers do not always honor the promises printed in their policies. A surprising number of residents experience a property insurance claim denial or unexplained payment delay—often at the very moment they need coverage the most.

This guide is written with a slight bias toward protecting policyholders and is tailored to the unique needs of Orange County residents. We draw exclusively from verifiable, authoritative sources like the Florida Statutes, the Florida Department of Financial Services (DFS), and published Florida court opinions. By the end of this article you will know:

• The specific rights Florida law gives you after storm, water, or fire damage;

• Why insurance carriers in Florida commonly deny or underpay claims;

• Key state regulations—including statutory deadlines—that every homeowner should mark on the calendar;

• Step-by-step actions to take immediately after receiving a denial letter; and

• When calling a bad faith insurance attorney licensed in Florida can make the difference between a repaired home and lingering financial loss.

Because every policy and fact pattern is different, this material is for general information only. It is not legal advice. For guidance on your specific situation, consult a licensed Florida attorney. If you are dealing with a property insurance claim denial orlando florida issue right now, timelines matter—keep reading to protect your rights.

Understanding Your Property Insurance Rights in Florida

1. The Contractual Right to Full, Prompt Payment

Your policy is a written contract. Under Fla. Stat. §95.11, you generally have five years from the date the insurer breaches that contract to file a lawsuit. That means you can hold the carrier accountable if they refuse to pay what the contract clearly covers.

2. The Right to Timely Claims Handling

Florida’s “Prompt Pay” statute—Fla. Stat. §627.70131—requires an insurer to:

• Acknowledge receipt of your claim within 14 days;

• Begin an investigation within a reasonable time;

• Provide a coverage decision within 90 days (unless factors outside the insurer’s control excuse the delay).

If the company drags its feet, you may be entitled to interest on overdue amounts.

3. The Right to Notice & Explanation

Florida Administrative Code Rule 69O-166.024 states that insurers must provide a “reasonable explanation in writing” for claim denials or partial payments. Generic phrases like “not covered” do not satisfy state regulations.

4. The Right to Report the Insurer to DFS

Policyholders can file a civil remedy notice (CRN) when they believe an insurer has acted in bad faith, and they may also complain directly to the Florida Department of Financial Services. DFS’s Consumer Services Division will open an inquiry and often compels a rapid response from the carrier.

5. The Right to Legal Counsel

Florida law allows you to hire an attorney on a contingency fee basis for insurance disputes. If the insurer’s conduct is deemed bad faith under Fla. Stat. §624.155, the court can order the insurer to pay your attorney’s fees in addition to your covered losses.

Common Reasons Property Insurance Companies Deny Claims in Florida

Knowing why claims are denied helps you respond strategically. Below are the most frequent justifications cited in denials received by Orlando homeowners:

1. Late Notice of Claim

Under Fla. Stat. §627.70132, most policyholders must give their insurer notice of a new or reopened claim within two years of the date of loss (three years for supplemental claims). Carriers often deny claims outright if this deadline is missed—even when the damage is significant.

2. Alleged Pre-Existing Damage

Insurers may argue that water stains, roof leaks, or structural issues pre-dated the covered peril. They rely on carrier-selected experts whose opinions are seldom in the homeowner’s favor. Obtaining your own independent evaluation can rebut this finding.

3. Wear and Tear or Maintenance Exclusions

Policies exclude “gradual deterioration.” However, many sudden losses—such as a pipe that unexpectedly bursts—are covered even when the pipe was old. Insurers sometimes blur that distinction to reduce payouts.

4. Policy Exclusions for Certain Perils

Standard policies may exclude flood, earth movement, or mold unless specific endorsements are purchased. Yet, carriers occasionally misapply these exclusions to deny related damage that should be covered (e.g., mold caused by a covered water leak).

5. Alleged Misrepresentation or Fraud

Carriers can void a policy if they believe the insured intentionally concealed material facts. Florida courts require insurers to prove the misrepresentation was intentional and material. Innocent mistakes generally do not justify a rescission or denial.

Florida Legal Protections & Insurance Regulations

1. Statutes of Limitation & Statutory Deadlines

• Notice of Claim: 2 years from date of loss (Fla. Stat. §627.70132) for most claims; 3 years for supplemental.

• Breach-of-Contract Lawsuit: 5 years from the date the insurer breaches the policy (Fla. Stat. §95.11).

• Civil Remedy Notice (CRN): Must be filed at least 60 days before filing a bad faith lawsuit (Fla. Stat. §624.155).

2. Florida’s Bad Faith Statute

Under Fla. Stat. §624.155, a policyholder may sue for extra-contractual damages if the insurer fails to settle a claim when, under all the circumstances, it could and should have done so. Examples include low-ball payments despite clear evidence of higher damages or intentional delay tactics.

3. The “Homeowner Claims Bill of Rights”

Fla. Stat. §627.4175—commonly called the Homeowner Claims Bill of Rights—requires insurers to provide a summary of your rights within 14 days after you file a claim. Key takeaways:

• Free access to mediation through DFS for disputes under $50,000;

• Information on how to obtain copies of your policy and adjuster reports;

• The right to receive full payment of undisputed amounts within 90 days.

4. Attorney Licensing & Fee-Shifting Rules

Only members in good standing of The Florida Bar Attorney Directory may give legal advice or appear in court for Florida insurance cases. Out-of-state lawyers must be admitted pro hac vice under Florida Rule of General Practice and Judicial Administration 2.510. If your attorney obtains a favorable judgment and proves bad faith, Fla. Stat. §627.428 and §624.155 authorize courts to order the insurer to pay reasonable attorney fees and costs—incentivizing carriers to act fairly from the start.

Steps to Take After a Property Insurance Claim Denial in Florida

Step 1: Review the Denial Letter in Detail

Look for exact policy provisions cited, dates, and adjuster notes. A vague explanation violates state regulations and may itself be evidence of improper claims handling.

Step 2: Request the Full Claim File

Under Fla. Stat. §627.4137, you are entitled to relevant documents, including expert reports your insurer used to deny the claim. Put your request in writing and send it via certified mail to create a paper trail.

Step 3: Document All Damage

Take high-resolution photos, video walkthroughs, and retain receipts for temporary repairs. Florida law permits reasonable emergency measures to prevent further damage—these costs are usually reimbursable.

Step 4: Obtain an Independent Estimate

Licensed public adjusters or construction professionals can evaluate damage and produce a detailed scope of work. Their report often highlights overlooked line-items, such as code upgrades required by the Florida Building Code.

Step 5: Consider DFS Mediation or Appraisal

For claims under $50,000, you can request free state-sponsored mediation. Many policies also include an appraisal clause, allowing each side to hire an appraiser who then selects a neutral umpire. Although appraisal is usually faster than litigation, be sure the clause in your policy is worded fairly before invoking it.

Step 6: File a Civil Remedy Notice (CRN) if Bad Faith Is Suspected

The CRN gives the insurer 60 days to cure the violation—often by paying the claim with interest. Failing to cure can open the door to extra-contractual damages in a later lawsuit.

Step 7: Preserve the Lawsuit Deadline

Do not wait until the fifth year (or even the fourth). Evidence and witnesses fade. An experienced florida attorney can negotiate while simultaneously preparing a lawsuit to protect your statute of limitations.

When to Seek Legal Help in Florida

Although many modest claims settle without counsel, the following red flags suggest you should speak with a bad faith insurance attorney immediately:

• The insurer refuses to pay undisputed amounts within 90 days;

• You receive a partial payment that is less than 50% of a credible contractor estimate;

• The carrier invokes complex exclusions (e.g., earth movement, anti-concurrent causation) unfamiliar to most policyholders;

• There is evidence of claim file manipulation—such as adjuster notes referencing pressure to reduce estimates;

• You are nearing the two-year notice deadline or the five-year lawsuit deadline.

An Orlando-based attorney understands local permitting issues, building codes, and the preferences of judges in Florida’s Ninth Judicial Circuit (Orange & Osceola Counties). Most offer free consultations and only collect fees if they obtain money for you.

Local Resources & Next Steps

1. Florida Department of Financial Services (DFS)

Call the DFS Consumer Helpline at 1-877-693-5236 or file a complaint online. DFS inquiries frequently spur carriers to reconsider denials.

2. Orlando Building Department

Permit history and code upgrade requirements can influence claim values. Visit the City of Orlando Permitting Office at 400 S. Orange Ave. for copies of prior permits.

3. Central Florida Better Business Bureau (BBB)

Research contractor ratings before hiring anyone for repairs or independent estimates.

4. Finding Qualified Counsel

Use The Florida Bar’s online directory to confirm an attorney’s license and disciplinary history. Look for lawyers who regularly litigate in Orange County and have experience with wind, water, and fire losses.

Note: Orlando is in the state’s Fifth District Court of Appeal, seated in Daytona Beach. If your case is appealed, it will be heard there, so hiring counsel familiar with Fifth DCA precedent is advantageous.

Legal Disclaimer

This guide is for informational purposes only and is not legal advice. Laws may change, and application of the law depends on the specific facts of each case. Consult a licensed Florida attorney for advice regarding your individual situation.

If your property insurance claim was denied, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review.