Guide to Property Insurance Claim Denials – Hollywood, Florida

Introduction: Mold Damage & Property Insurance in Hollywood, Florida

Hollywood, Florida’s humid subtropical climate, Atlantic breezes, and seasonal storms create ideal conditions for mold growth inside homes. Broward County’s proximity to the Atlantic Ocean keeps moisture levels high, and when roof leaks or plumbing failures go unnoticed, mold can spread quickly behind drywall, under flooring, or in HVAC systems. Homeowners typically turn to their property insurance policies—often called homeowners insurance—for help paying for remediation and repairs. Unfortunately, many Hollywood homeowners face property insurance claim denial Hollywood Florida even when they believe their mold damage should be covered.

This comprehensive legal guide explains, step by step, how Florida law regulates mold damage claims, why insurers deny them, and what Hollywood policyholders can do next. The information below relies exclusively on authoritative sources such as Chapter 627 of the Florida Statutes, Florida Administrative Code rules, published Florida appellate opinions, and Florida Department of Financial Services (DFS) consumer materials. While the guide slightly favors the policyholder’s perspective, it remains strictly factual and evidence-based.

Understanding Your Rights in Florida

1. Your Insurance Contract Is Governed by Florida Law

When you buy a homeowners policy in Hollywood, you enter a contract governed by Title XXXVII, Chapter 627, Florida Statutes. Key rights include:

Timely claims handling. Under Fla. Stat. § 627.70131, insurers must acknowledge a claim in writing within 14 days and begin an investigation.

• Prompt payment or denial. The same statute requires insurers to pay or deny covered portions within 60 days after receiving a sworn proof of loss, unless factors outside their control prevent a decision.

Pre-suit notice and fee shifting. For residential property insurance lawsuits filed after December 2022, Fla. Stat. § 627.70152 outlines a mandatory pre-suit notice process and limits on attorney fees.

• Fair claim settlement practices. Florida Administrative Code Rule 69O-166.031 requires insurers to adopt standards for fair and prompt handling of claims.

2. Mold Coverage Is Often Limited but Not Automatically Excluded

Florida law does not prohibit insurers from limiting mold coverage through endorsements or sub-limits (often $10,000 or less). Check your Declarations Page and policy forms for wording such as “Limited Fungi, Wet or Dry Rot, or Bacteria Coverage.” Even with a sub-limit, additional amounts might be available if mold results from a covered peril like a sudden pipe burst, roof damage from wind, or accidental discharge of water. Understanding the cause of loss is crucial when disputing a claim denial.

3. The Insurer’s Burden of Proof for Some Exclusions

Florida courts hold that, once a policyholder shows an initial loss during the policy period, the insurer bears the burden to prove an exclusion applies (see Jones v. Federated National Ins. Co., 235 So.3d 936, Fla. 4th DCA 2018). If mold damage is denied because of “long-term leakage” or “wear and tear,” the insurer must substantiate its conclusion with evidence gathered during the investigation.

Common Reasons Property Insurance Companies Deny Claims in Florida

1. Gradual or Long-Term Water Intrusion

Many policies exclude damage caused by repeated seepage or leakage over 14 days or more. Insurers contend that homeowners could have discovered and prevented mold sooner. Hollywood’s average annual rainfall of 65 inches means roofs and windows must be maintained—insurers may blame the homeowner for neglect.

2. Failure to Mitigate

Policies typically obligate policyholders to take “reasonable measures” to protect property after a loss. If you did not dry saturated drywall, run dehumidifiers, or hire remediation quickly, the insurer may deny or reduce payment citing failure to mitigate damages.

3. Policy Sub-Limit Exhausted

If your mold endorsement caps coverage at $10,000, the carrier may pay that amount and deny the rest. Review whether the cap applies per loss or per policy period. Some endorsements restore additional coverage if caused by a specified peril like hurricane wind.

4. Late Notice

Under § 627.70131(7)(a), you must notify your insurer of a hurricane or windstorm claim within one year of the date of loss; other property claims must be reported within two years. Insurers will deny claims reported after these windows.

5. Alleged Misrepresentation or Fraud

Insurers scrutinize mold claims for inflated remediation invoices or staged damage. Florida Statutes § 626.9541(1)(i) addresses unfair claim practices, but carriers may still void coverage for intentional misstatements.

Florida Legal Protections & Regulations

1. Statutory Deadlines Favoring Policyholders

Notice of Intent to Litigate. Under § 627.70152, you must send a pre-suit notice at least 10 business days before filing a lawsuit. This triggers the insurer’s right to re-inspect and potentially cure the dispute.

Statute of Limitations. For property insurance lawsuits, Fla. Stat. § 95.11(2)(e) sets a two-year deadline from the date of the insurer’s denial (shortened from five years by 2021 reforms). Hollywood homeowners should mark the denial date carefully.

2. Appraisal and Mediation Options

Most Florida policies contain an appraisal clause. Either party can demand appraisal once there is a dispute over the amount of loss—not coverage. The Florida Department of Financial Services also offers a free, voluntary mediation program for residential property claims under Fla. Admin. Code 69J-166.031.

• Request mediation within 60 days of a disagreement but before filing suit.

• The insurer pays the mediator’s fee; you choose whether to accept any settlement reached.

3. DFS Consumer Assistance

The Division of Consumer Services within DFS handles complaints about unfair claim denials, delays, and underpayments. Homeowners can file online, upload denial letters, and track status.

Florida DFS Consumer Complaint Portal

4. Attorney Licensing & Representation

Only a member in good standing with The Florida Bar may provide legal advice or represent you in court. Public adjusters may estimate damages but cannot practice law.

Steps to Take After a Denial in Florida

1. Review the Denial Letter Carefully

• Identify the stated reason. Is it an exclusion, late notice, or failure to mitigate?

• Check policy citations. The letter should reference specific policy wording.

• Note appeal deadlines. Some insurers require an internal appeal within 60 days.

2. Collect and Preserve Evidence

• Photographs of visible mold, water stains, and damaged contents

• Moisture meter readings and air quality reports

• Remediation invoices and receipts

• Emails or notes from prior communications with the insurer

3. Obtain an Independent Mold Assessment

Florida requires licensed mold assessors (Chapter 468, Part XVI) to provide written protocols. A neutral assessor’s report may rebut the insurer’s conclusion.

4. File a DFS Mediation or Complaint

Access the DFS online portal, select “Residential Property claim,” and upload your denial letter, policy, and photos. DFS will notify the insurer and schedule mediation if requested.

5. Consider the Appraisal Process

If the dispute is solely about cost, submit a written demand for appraisal under your policy’s clause. Each side appoints a disinterested appraiser; they select an umpire. The award becomes binding on amount but not on coverage.

6. Preserve Your Litigation Rights

Send the statutory pre-suit notice (Form DFS-I0-1571) under § 627.70152. Waiting too close to the two-year limit can jeopardize your claim, so mark all deadlines on a calendar.

When to Seek Legal Help in Florida

1. Complex Coverage Disputes

If the insurer argues your mold resulted from “ongoing leakage” or “construction defects,” legal interpretation of policy exclusions may determine the outcome.

2. Bad Faith Allegations

Florida recognizes statutory bad-faith claims under § 624.155 once you win a favorable judgment on coverage. Examples include undue delay, insufficient investigation, or harassment.

3. Large-Scale or Commercial Losses

Mold spreading through multifamily or commercial buildings can result in six-figure remediation costs. A Florida attorney can coordinate environmental experts, subcontractors, and sworn proofs of loss.

4. Disputed Cause of Loss

Wind-driven rain from a tropical storm versus pre-existing leakage often requires expert testimony (roofing, engineering, mycology). Legal counsel ensures compliance with Daubert evidentiary standards.

Local Resources & Next Steps for Hollywood Homeowners

1. Broward County Building Code Services

Hollywood adopts the Florida Building Code, which prescribes moisture barriers and HVAC ventilation standards that can help prove your home met code at construction time.

Broward County Building Code Resources

2. Flood Zone Considerations

Sections of east Hollywood fall within FEMA Special Flood Hazard Areas (SFHAs). Flood policies issued through the National Flood Insurance Program (NFIP) never cover mold unless directly caused by floodwater and you took reasonable steps to prevent further growth (FEMA NFIP Summary of Coverage). Knowing which policy covers the cause will avoid misplaced claims.

3. University of Florida IFAS Extension – Broward

Provides homeowner workshops on indoor air quality, moisture control, and mold prevention.

UF/IFAS Broward County Extension

4. Florida Department of Business & Professional Regulation (DBPR)

Verify licenses of mold assessors, remediators, and contractors online to ensure compliance during repairs.

Legal Disclaimer

The information in this guide is provided for educational purposes only and does not constitute legal advice. Laws change frequently, and their application can vary based on specific facts and circumstances. For advice about your situation, consult a licensed Florida attorney.

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