Guide to Property Insurance Claim Denial in Hollywood, Florida

Introduction: Mold Damage and Claim Denials in Hollywood, Florida

Hollywood, Florida homeowners are no strangers to heat, humidity, and tropical storms. These conditions create the perfect environment for mold growth after roof leaks, plumbing failures, or hurricane-related water intrusion. While many property insurance policies issued in Florida provide some coverage for mold remediation and related damages, insurers frequently dispute or deny these claims. This comprehensive guide explains how the law in Florida—including specific regulations, deadlines, and dispute-resolution programs—protects policyholders in Hollywood. By understanding these rules, you will be in a stronger position to challenge an improper denial of your mold damage claim.

This article favors the policyholder’s perspective while remaining strictly factual, citing only authoritative sources such as the Florida Statutes, Florida Administrative Code, published Florida court decisions, and information from the Florida Department of Financial Services (DFS). It also highlights unique local factors—like Broward County’s coastal exposure and Hollywood’s building code requirements—that can influence your claim.

Understanding Your Rights in Florida

The Contractual Right to Coverage

Your property insurance policy is a contract. Under Florida law, both you and your insurer must follow its terms. If the policy includes a mold exclusion or limitation, that language governs unless it violates Florida public policy or statutory protections. For example, many policies cap mold remediation at $10,000 unless you purchased optional increased coverage.

Florida’s Claim Handling Standards

Section 627.70131(1)(a), Florida Statutes, requires insurers to acknowledge and act upon communications regarding claims within 14 calendar days. Subsection (5)(a) further requires the insurer to pay or deny the claim—or a portion of it—within 90 days after receiving notice of the claim, unless factors beyond the insurer’s control prevent a decision. Failure to meet these deadlines may constitute bad faith.

Statute of Limitations to Sue

Florida’s statute of limitations for a property insurance lawsuit is generally five years from the date the insurer breaches the policy (Fla. Stat. § 95.11(2)(e)). However, hurricane-related claims currently have a one-year notice deadline under Fla. Stat. § 627.70132. Missing the applicable deadline can bar your lawsuit entirely.

Right to Attorney’s Fees

Historically, Fla. Stat. § 627.428 allowed a prevailing policyholder to recover reasonable attorney’s fees from the insurer. Amendments enacted in 2022 and 2023 (Senate Bills 2D and 2A) altered that framework for new or renewed policies after December 16, 2022. For older policies, fee-shifting may still apply. Always review the policy’s effective date and consult a licensed Florida attorney.

Common Reasons Property Insurance Companies Deny Claims in Florida

1. Mold Exclusions or Sublimits

Many policies exclude mold entirely unless it results from a covered peril (e.g., sudden pipe burst) and is reported promptly. Others impose strict dollar sublimits. Insurers often deny mold claims by citing these provisions, even when the homeowner disputes their applicability.

2. Late Notice

Insurers may argue you reported the loss too late, violating the policy’s prompt-notice clause and preventing a fair investigation. Florida courts evaluate whether any delay prejudiced the insurer (Kravitz v. Tower Hill Signature Ins. Co., 322 So. 3d 1235, Fla. 4th DCA 2021).

3. Pre-Existing or Gradual Damage

Insurers routinely label mold as a result of long-term seepage or maintenance deficiencies, which are typically excluded. Photos, expert moisture readings, and repair invoices can rebut these allegations.

4. Failure to Mitigate

Florida policies require insureds to protect property from further damage after a loss. If you did not promptly dry out water-logged areas or hire remediation professionals, the insurer may deny coverage for ensuing mold.

5. Alleged Fraud or Misrepresentation

If an insurer alleges that the policyholder overstated damages or concealed material facts, it can deny the claim outright and even seek rescission. Documenting every repair estimate and communication helps refute such accusations.

Florida Legal Protections & Regulations

Prompt Pay Statute

Under Fla. Stat. § 627.70131(7)(a), if the insurer does not pay undisputed amounts within the required timeframe, it must pay interest to the insured. This incentive discourages delay tactics.

Unfair Claims Practices

Section 626.9541(1)(i) of the Florida Statutes identifies unfair claim settlement practices, such as misrepresenting policy provisions or failing to conduct a reasonable investigation. Policyholders may file a Civil Remedy Notice (CRN) with DFS, giving the insurer 60 days to cure the violation or risk bad-faith exposure.

Mediation & Neutral Evaluation

The Florida Administrative Code, Rule 69J-166.031, sets out a DFS-administered mediation program for property insurance disputes. Either party may request mediation before litigation. For sinkhole or disputed appraisal cases, DFS offers a separate neutral evaluation program.

Assignment of Benefits (AOB) Limitations

House Bill 7065 (2019) and Senate Bill 2D (2022) restrict AOB agreements. Although homeowners may still assign benefits to mold remediators, strict notice and execution requirements now apply. Violations can give insurers another reason to deny or limit payment.

Steps to Take After a Denial in Florida

1. Review the Denial Letter Line by Line

Florida law requires the insurer to provide a “reasonable explanation” of the denial in writing (Fla. Stat. § 626.9541(1)(i)3.f). Compare the cited policy language to your actual policy declarations and endorsements. Ensure the insurer quoted the correct form number and edition date.

2. Gather and Preserve Evidence

• Photographs or videos of mold colonies, water staining, and any damaged personal property.

• Moisture meter readings by licensed mold assessors.

• Receipts and invoices for emergency dry-out or air scrubbers.

• Communications with contractors and the insurer’s adjuster.

Well-organized evidence can rebut allegations of late notice or pre-existing damage.

3. Request the Claim File

Under Fla. Stat. § 626.9541(1)(i)3.c, failure to promptly provide a reasonable explanation of the facts on which the insurer bases its denial may itself be an unfair practice. You may request your claim file, including photos and adjuster notes, to evaluate whether the investigation was adequate.

4. File a Complaint or Mediation Request with DFS

The Florida Department of Financial Services offers a free mediation program and a Consumer Helpline (1-877-693-5236). To initiate mediation, complete Form DFS-I0-1563 on the DFS website and pay the $100 fee (insurers pay the balance). DFS will schedule a session within 21 days of assignment.

To file a complaint or Civil Remedy Notice, use DFS’s MyFloridaCFO portal. Provide the claim number, policy number, and a concise statement of the violation. The insurer then has 60 days to resolve the issue or risk statutory bad-faith exposure under Fla. Stat. § 624.155.

5. Consider an Appraisal Demand

Many Florida policies include an appraisal clause. Either party can invoke appraisal when there is a dispute over the amount of loss (not coverage). Recent Florida appellate decisions (State Farm Fla. Ins. Co. v. Sanders, 45 Fla. L. Weekly D2596) affirm that appraisal can proceed even when the insurer denies the claim, provided coverage is not wholly disputed.

When to Seek Legal Help in Florida

Indicators You Need a Florida Attorney

• The insurer accuses you of fraud or intentional misrepresentation.

• The denial letter cites complex exclusions or endorsements you do not understand.

• High-value mold and build-back costs (often $30,000+) make self-representation risky.

• The insurer refuses to participate in DFS mediation or ignores CRN deadlines.

Florida attorneys must be licensed by the Florida Bar (Rule 1-3.2, Rules Regulating the Florida Bar). Verify licensure at The Florida Bar’s online directory.

Fee Structures

Most property insurance lawyers accept cases on contingency, meaning they are paid only if you recover money. Though recent legislative changes have altered automatic fee-shifting, many attorneys still offer no-cost consultations to evaluate the merits of your claim.

Local Resources & Next Steps for Hollywood Homeowners

Hollywood’s Climate and Mold Risk

Hollywood averages more than 60 inches of rainfall annually, and Broward County ranks among Florida’s highest for relative humidity, according to the National Oceanic and Atmospheric Administration (NOAA). Local building codes (Broward County Amendment to the Florida Building Code) require certain moisture-resistant materials in coastal flood zones, but post-loss repairs must still comply with current code, increasing costs.

County and Municipal Contacts

• Hollywood Building Division: (954) 921-3335 – Permitting questions for mold remediation build-back.

• Broward County Environmental Protection: (954) 519-1483 – Mold assessment licensing inquiries.

• United Way of Broward County: 2-1-1 – Referrals for emergency remediation grants.

Checklist for Hollywood Homeowners

• Document the date you discovered mold and the suspected water source.

• Notify your insurer in writing immediately; request a claim acknowledgment under Fla. Stat. § 627.70131(1).

• Hire a licensed mold assessor (Fla. Stat. § 468.8419) to perform air sampling and create a remediation protocol.

• Obtain at least two written estimates from Florida-licensed mold remediators.

• Retain all receipts for dehumidifiers, fans, and temporary lodging.

• Within 60 days of a denial, evaluate whether to file a DFS complaint or Civil Remedy Notice.

• Consult a qualified Florida attorney if the dispute involves substantial mold-related build-back costs.

Authoritative Sources

Florida Department of Financial Services Consumer Resources Florida Statute § 627.70131 – Insurer Claims Handling Florida Statute § 95.11 – Limitations of Actions Florida Office of Insurance Regulation – Market Reports The Florida Bar – Attorney Search

Legal Disclaimer

This guide provides general information for Hollywood, Florida homeowners. It is not legal advice. Laws change frequently, and your situation may differ. Consult a licensed Florida attorney for advice about your specific claim.

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