Bad Faith Insurance Attorney Fort Lauderdale

When an insurance company refuses to pay a legitimate claim, delays payment without justification, or offers far less than a claim is worth, Florida law gives policyholders a powerful legal remedy: a bad faith insurance claim. For property owners in Fort Lauderdale and throughout Broward County, understanding this area of law can mean the difference between recovering the full value of your loss and accepting pennies on the dollar.

What Constitutes Bad Faith Insurance Practices in Florida

Florida Statutes Section 624.155 governs bad faith claims against insurance companies. The law imposes a duty on insurers to deal fairly and in good faith with their policyholders. When an insurer breaches that duty, the policyholder can pursue damages beyond the original policy limits — including consequential damages, attorney's fees, and in some cases punitive damages.

Common bad faith practices Florida courts have recognized include:

• Failing to investigate a claim promptly and thoroughly
• Denying a claim without a reasonable basis
• Making unreasonably low settlement offers — sometimes called "lowballing"
• Misrepresenting policy provisions or coverage terms
• Delaying payment without a legitimate dispute about coverage
• Refusing to pay a claim after liability has become reasonably clear
• Failing to communicate settlement offers or relevant information to the insured

Fort Lauderdale property owners frequently encounter these tactics after hurricane damage, roof claims, water intrusion losses, and fire damage. Insurers sometimes hire third-party adjusters with financial incentives to minimize payouts, producing reports that undervalue damage or mischaracterize the cause of loss.

The Civil Remedy Notice: Florida's Required First Step

Before filing a bad faith lawsuit under Section 624.155, Florida law requires policyholders to submit a Civil Remedy Notice (CRN) to the Florida Department of Financial Services and to the insurer. This notice must specify the statutory provision violated, the facts supporting the violation, and the damages claimed.

The insurer then has 60 days to cure the violation. If the insurer pays the full amount owed — including interest — within that window, the bad faith claim is extinguished. If the insurer fails to cure or offers only a partial remedy, the policyholder may proceed with the lawsuit.

This procedural requirement is strict. A defective CRN can doom an otherwise viable bad faith claim, which is why retaining an experienced Fort Lauderdale property insurance attorney before filing is critical. The notice must be carefully drafted to preserve all available claims and remedies.

Damages Available in Florida Bad Faith Claims

One of the most significant aspects of Florida's bad faith statute is the scope of recoverable damages. Unlike a standard breach of contract claim — where recovery is limited to policy benefits owed — a successful bad faith claim can yield substantially more.

Available damages may include:

• The full value of the original claim, including amounts the insurer should have paid
• Consequential damages caused by the insurer's delay or denial, such as additional property damage that worsened because repairs were not made
• Attorney's fees and court costs under Section 627.428
• Prejudgment interest on unpaid benefits
• Punitive damages in cases involving particularly egregious or deliberate misconduct

Florida courts have awarded substantial verdicts in bad faith cases where insurers engaged in systematic claim suppression or intentional misrepresentation. The exposure to damages exceeding policy limits is precisely why insurers take Civil Remedy Notices seriously and why having legal representation strengthens your position from the outset.

How Fort Lauderdale Property Claims Become Bad Faith Cases

South Florida's climate makes property insurance disputes especially common. Fort Lauderdale sits in a high-risk hurricane zone, and storm-related claims are frequently contested. After major weather events, insurers face high claim volumes and often deploy strategies designed to reduce payouts across the board rather than evaluate each claim on its individual merits.

A typical bad faith scenario unfolds like this: A homeowner files a roof or water damage claim after a storm. The insurer's adjuster attributes the damage to "wear and tear" or "pre-existing conditions" rather than the storm — a coverage exclusion. The insurer denies the claim or offers far less than the actual repair cost. The policyholder, unaware of their rights, accepts the low offer or gives up entirely.

What that homeowner may not know is that the insurer's adjuster may have used a flawed methodology, cherry-picked exclusions, or ignored relevant evidence. An independent public adjuster or engineering expert, when retained, often produces a vastly different damage assessment. When the gap between what the insurer offered and the actual loss is significant — and the insurer's conduct in reaching that offer was unreasonable — the foundation for a bad faith claim exists.

Fort Lauderdale property owners should also be aware of recent legislative changes in Florida. The 2023 property insurance reforms altered the fee-shifting framework and modified some procedural aspects of bad faith litigation. An attorney familiar with current Florida insurance law can assess how these changes affect your specific claim.

What to Do if You Suspect Bad Faith

If your insurer has denied, delayed, or underpaid your property claim, take these steps immediately:

• Document everything. Save all correspondence, emails, claim forms, denial letters, and notes from phone calls with adjusters. Date and detail every interaction.
• Request the claim file. Florida law entitles you to obtain your insurer's claim file, which can reveal whether the adjuster followed proper procedures and how coverage decisions were made.
• Get an independent assessment. Hire a licensed public adjuster or contractor to provide an independent estimate of your damage. This creates a documented basis for disputing the insurer's valuation.
• Do not sign releases or accept partial payments without legal advice. Signing certain documents may waive your right to pursue additional claims, including bad faith.
• Consult an attorney before filing a CRN. The 60-day cure window and the specificity requirements of the notice make early legal involvement essential.

Time matters in these cases. Florida's statute of limitations for bad faith claims is generally five years from the date the insurer committed the bad faith act, but practical deadlines — including the CRN requirement — can effectively shorten that window. Acting promptly preserves your options.

Insurance companies have teams of lawyers and adjusters working to minimize what they pay. Fort Lauderdale policyholders deserve equally experienced legal representation to hold insurers accountable under Florida law.

Need Help? If you have questions about your case, call or text 833-657-4812 for a free consultation with an experienced attorney.

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