Insurance Bad Faith Claims in Boca Raton, FL

When you purchase an insurance policy, you enter into a contract built on trust. You pay your premiums faithfully, and in return, your insurer promises to handle your claims honestly and promptly. But insurance companies sometimes put their own profits ahead of their policyholders—delaying valid claims, denying coverage without justification, or offering unreasonably low settlements. When that happens in Florida, the law provides a powerful remedy: a bad faith insurance claim.

Boca Raton residents filing insurance claims—whether for homeowner's damage, auto accidents, or personal injury—have specific legal protections under Florida law. Understanding those protections could mean the difference between accepting a fraction of what you're owed and recovering the full value of your losses.

What Is Insurance Bad Faith Under Florida Law?

Florida recognizes two types of bad faith insurance claims: first-party bad faith and third-party bad faith.

First-party bad faith occurs when your own insurance company mishandles your claim. For example, if your homeowner's insurer wrongfully denies your hurricane damage claim or drags out the investigation for months without a legitimate reason, that insurer may be acting in bad faith toward you—its own policyholder.

Third-party bad faith involves a liability insurer that fails to protect its insured from an excess judgment. If an at-fault driver's insurer refuses to settle a claim within policy limits when it reasonably should, and a jury later awards a verdict exceeding those limits, the insurer may be liable for the full judgment—not just the policy cap.

Florida's primary bad faith statute, Section 624.155, Florida Statutes, governs first-party claims. It prohibits insurers from failing to attempt in good faith to settle claims when, under all the circumstances, it could and should have done so. Florida courts have also developed common law bad faith standards applicable to third-party situations under the framework established in Blanchard v. State Farm Mutual Automobile Insurance Co.

Common Examples of Bad Faith Conduct in Boca Raton

Bad faith can take many forms. South Florida property owners and accident victims commonly encounter the following insurer behaviors that may constitute bad faith:

• Unreasonable claim delays: Florida law requires insurers to acknowledge claims within 14 days and make coverage decisions within 90 days. Systematic stonewalling or repeated requests for unnecessary documentation are red flags.
• Lowball settlement offers: Offering a fraction of documented damages—particularly when liability is clear—may signal bad faith, especially if the offer ignores medical records, repair estimates, or expert opinions.
• Wrongful claim denial: Denying a covered claim by misrepresenting policy language or citing exclusions that do not apply to your circumstances.
• Failure to investigate: Closing a claim without conducting a reasonable investigation or ignoring evidence favorable to the policyholder.
• Refusing to communicate: Not returning calls, failing to assign an adjuster, or providing vague and conflicting information about claim status.
• Misrepresenting policy benefits: Telling policyholders their coverage does not include benefits it actually provides.

In the Boca Raton area—where property values are high, hurricane exposure is real, and personal injury claims are frequent—these tactics can cause devastating financial harm to families and businesses alike.

The Civil Remedy Notice: A Critical First Step

Before filing a first-party bad faith lawsuit in Florida, you must take a procedural step that many policyholders are unaware of: filing a Civil Remedy Notice (CRN) with the Florida Department of Financial Services.

Under Section 624.155, the CRN must identify the specific bad faith violation, the policy language at issue, and the facts supporting the claim. Once the CRN is filed, the insurer has 60 days to cure the violation—meaning it can pay the undisputed claim amount and potentially avoid a bad faith lawsuit altogether.

This 60-day cure period is not optional, and skipping the CRN will bar your bad faith claim entirely. The notice must be precise. A vague or incomplete CRN can give the insurer grounds to argue the statutory prerequisites were not met. Working with an attorney familiar with Florida's bad faith framework is essential to getting this step right.

Third-party bad faith claims under common law do not require a CRN, but they carry their own procedural requirements and timing considerations that make early legal involvement important.

What Damages Can You Recover?

A successful bad faith claim in Florida can yield damages that go well beyond the original policy limits. Recoverable damages may include:

• The full amount of the underlying claim that was wrongfully delayed or denied
• Consequential damages caused by the insurer's conduct—such as additional property damage from a delayed repair or financial harm from a prolonged dispute
• Attorney's fees and court costs
• In third-party cases, the full amount of an excess judgment against the insured
• In egregious cases involving intentional misconduct, punitive damages may be available

Florida courts have held that the purpose of bad faith law is not just to compensate policyholders but to deter insurers from engaging in improper claim handling practices. This deterrent function explains why damages in bad faith cases can substantially exceed the policy limits themselves.

What Boca Raton Policyholders Should Do Right Now

If you believe your insurance company is mishandling your claim, protecting your legal rights starts immediately. Take these steps:

• Document everything: Keep copies of all correspondence, emails, letters, and notes from phone calls including dates, times, and the names of representatives you spoke with.
• Request decisions in writing: Any denial or coverage decision should be in writing with a specific legal or policy basis cited. If the insurer refuses, that refusal itself is meaningful.
• Do not accept a low settlement without counsel: Signing a release in exchange for a settlement—even an inadequate one—can permanently eliminate your right to pursue additional remedies including a bad faith claim.
• Track deadlines carefully: Florida's statute of limitations for bad faith claims is generally five years from the date of the violation, but waiting too long can complicate your case and erode evidence.
• Consult an attorney before filing the CRN: The Civil Remedy Notice is a legally significant document. An error in its preparation can undermine your entire claim.

Boca Raton policyholders dealing with property insurers following storm damage, or accident victims whose claims are being undervalued by liability carriers, should not assume the insurer's position is final or correct. Florida law exists precisely because insurers have far greater resources and expertise than most individuals—and bad faith statutes level that playing field.

Insurance companies have legal departments, experienced adjusters, and years of practice managing claims to their advantage. You deserve the same level of advocacy on your side. If your insurer is not treating your claim with the honesty and urgency it deserves, you may have more legal recourse than you realize.

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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