Can You Sue an Insurance Company for Bad Faith in Florida?

Can You Sue an Insurance Company for Bad Faith in Florida?

You filed a property damage claim. You paid your premiums on time, documented everything, and followed every step your insurance company asked. Then they denied your claim, lowballed you, or simply stopped responding. Now you're left wondering whether you have any recourse — and the answer may be yes.

Florida law gives policyholders the right to sue insurance companies that act in bad faith. If your insurer mishandled your claim, you may be entitled to more than just the value of your original loss.

What Is Insurance Bad Faith?

Bad faith is when an insurance company fails to handle your claim honestly, fairly, and promptly. Insurance companies have a legal duty to act in good faith toward policyholders. When they deliberately breach that duty — whether through delay tactics, lowball offers, or outright denial without justification — Florida law calls that bad faith.

Bad faith can look like:

• Denying a legitimate claim without a reasonable basis
• Delaying payment without explanation for an unreasonable amount of time
• Failing to investigate your claim properly
• Misrepresenting the terms of your policy to reduce your payout
• Ignoring your calls and letters during the claims process
• Making a settlement offer so low it bears no relationship to your actual damages

Insurers count on policyholders not knowing their rights. Many people accept a lowball offer or a denial without realizing they have legal options.

Florida's Bad Faith Laws

Florida Statute § 624.155 is the key law that governs bad faith claims against insurance companies. It requires you to file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services before you can file a lawsuit. This gives the insurance company 60 days to correct the problem before you take legal action.

If the insurer fixes the issue within that window — pays what it owes, acknowledges the error — the case may end there. But if they don't respond adequately, you can move forward with a bad faith lawsuit in civil court.

There is also Florida Statute § 626.9541, which prohibits unfair insurance trade practices. This law covers deceptive claims handling, false statements about policy coverage, and other conduct that harms policyholders.

The timeline matters. Florida has a statute of limitations on bad faith claims, so if you suspect your insurer acted wrongly, do not wait to get legal guidance.

What Damages Can You Recover?

This is where bad faith claims become meaningfully different from ordinary coverage disputes. In a standard property damage case, you recover what you're owed under the policy. In a successful bad faith case, you may recover significantly more.

Potential damages in a Florida bad faith lawsuit include:

• The full amount of your original claim — what you were owed from the start
• Consequential damages — financial losses that resulted from the delay or denial, such as repair costs that grew because damage went untreated
• Attorney's fees and court costs — Florida law may allow you to recover these from the insurer
• Extracontractual damages — in cases involving particularly egregious conduct

Bad faith litigation changes the dynamic. Instead of fighting over a single claim value, the insurer faces potential liability that can far exceed what they originally owed you.

Common Examples in Florida Property Damage Cases

Property damage bad faith claims in Florida often arise from:

Hurricane and storm damage: After a major storm, insurers face thousands of claims at once. Some delay inspections, understaff adjusters, or rely on desk reviews that miss significant damage. Delays of months — sometimes years — without adequate payment are common.

Water and mold damage: Insurers frequently argue that damage was pre-existing or resulted from neglect rather than a covered event. When that argument isn't supported by the evidence and is used to deny a valid claim, it may constitute bad faith.

Roof damage claims: Florida roof claims are among the most disputed. Insurers sometimes hire adjusters who minimize damage or apply policy exclusions that don't actually apply to the facts of your loss.

Underpayment: Receiving a check that covers only a fraction of your repair estimate — with no explanation of how the number was calculated — is a red flag for bad faith claims handling.

How to Protect Your Rights

If you believe your insurance company acted in bad faith, there are steps you should take now:

1. Document everything. Save every letter, email, and voicemail from your insurer. Keep records of every call, including the date and what was discussed.
2. Get an independent estimate. If the insurer's number doesn't match what contractors are quoting you, document that gap.
3. Do not sign a release or accept final payment without understanding what rights you may be giving up.
4. Consult an attorney before filing your Civil Remedy Notice. The CRN process has specific requirements, and a mistake can limit your options.

Louis Law Group has handled Florida property damage claims and bad faith cases across the state. We know how insurers build their defenses and how to counter them.

When to Call a Bad Faith Insurance Attorney

Not every disputed claim rises to the level of bad faith. But if your insurer denied your claim without a reasonable explanation, dragged the process out for months, or paid a fraction of what you're clearly owed — it's worth having an attorney review the file.

Louis Law Group offers free case evaluations. We'll look at the facts, tell you honestly whether you have a bad faith claim, and explain what it could be worth. There's no obligation and no cost to find out where you stand.

Florida law was designed to protect policyholders from insurer misconduct. You paid for coverage. You deserve to have it honored.

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If your Florida property damage claim was denied or underpaid, Louis Law Group fights for your full compensation. Call us for a free case review.

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