Insurance Bad Faith Claims in Coral Springs, FL

When you file an insurance claim after an accident, property damage, or other covered loss, you expect your insurer to handle it fairly and promptly. Florida law requires insurance companies to do exactly that. When they don't—when they delay, deny, or lowball claims without legitimate justification—they may be acting in bad faith, and Florida law gives you meaningful remedies.

Coral Springs policyholders facing unreasonable insurer conduct have legal options that go far beyond simply accepting a denied or underpaid claim. Understanding how bad faith law works in Florida is the first step toward holding your insurance company accountable.

What Constitutes Insurance Bad Faith in Florida

Florida recognizes two categories of bad faith insurance claims: first-party bad faith and third-party bad faith. First-party claims arise when your own insurer fails to deal fairly with you—for example, your homeowner's insurer denies a valid hurricane damage claim or your uninsured motorist carrier refuses to pay a fair settlement. Third-party claims arise when a liability insurer fails to protect its insured from an excess judgment, typically by refusing a reasonable settlement demand within policy limits.

Under Florida Statute § 624.155, an insurer commits bad faith when it fails to:

• Attempt in good faith to settle claims when liability is reasonably clear
• Promptly investigate and process claims
• Communicate clearly and honestly about coverage decisions
• Provide a reasonable explanation for any denial or partial payment
• Pay undisputed portions of a claim in a timely manner

The Florida Supreme Court has made clear that insurers owe their policyholders a duty of good faith that goes beyond merely following the technical terms of the policy. An insurer that plays games with legitimate claims can face liability well beyond the original policy limits.

The Civil Remedy Notice Requirement

Before filing a bad faith lawsuit under § 624.155 in Florida, policyholders must first submit a Civil Remedy Notice (CRN) to the Florida Department of Financial Services and to the insurer. This notice identifies the specific statutory violations and gives the insurer 60 days to cure the alleged bad faith conduct.

This procedural requirement is critical. Missing it or filing it improperly can bar your entire bad faith claim. The CRN must specifically describe the insurer's offending conduct and cite the applicable statutory provisions. If the insurer fails to cure within the 60-day window, you gain the right to pursue the bad faith lawsuit.

Coral Springs residents dealing with difficult insurers should document every interaction—dates of calls, names of adjusters, written correspondence, and delays in receiving responses—before and during the CRN process. This documentation becomes the foundation of your bad faith case.

Common Bad Faith Tactics Used by Florida Insurers

Insurance companies in Broward County and across Florida use a range of tactics that can rise to the level of bad faith. Recognizing them early puts you in a stronger legal position.

• Unreasonable claim delays: Sitting on a claim for months without a valid reason, particularly after liability is established
• Lowball offers: Offering a fraction of fair value on a well-documented claim to pressure a quick settlement
• Improper denials: Citing policy exclusions that don't actually apply, or misrepresenting policy language
• Failure to investigate: Making coverage decisions without conducting a reasonable inquiry into the facts
• Misrepresenting policy terms: Telling policyholders they have less coverage than they actually purchased
• Requesting excessive documentation: Repeatedly demanding the same records as a delay tactic

Florida's Office of Insurance Regulation tracks complaints against carriers, and patterns of misconduct across many policyholders can support not just individual claims but regulatory enforcement actions as well.

Damages Available in a Florida Bad Faith Claim

One of the most significant aspects of Florida bad faith law is the potential for damages that exceed the original policy limits. If an insurer is found to have acted in bad faith, the policyholder may recover:

• The full amount of the underlying claim, regardless of policy limits
• Consequential damages caused by the insurer's delay or denial
• Attorney's fees and court costs under Florida Statute § 627.428
• In egregious cases, punitive damages may also be available

Florida Statute § 627.428 is particularly powerful—it allows prevailing policyholders to recover their attorney's fees from the insurer. This provision levels the playing field, making it financially feasible to fight back against well-funded insurance companies even when the disputed amount is relatively modest.

For Coral Springs homeowners dealing with denied property claims, or accident victims whose UM/UIM insurer refuses to pay, these damages provisions mean a successful bad faith claim can result in recovery well beyond what was originally sought.

Steps to Take if You Suspect Bad Faith

If your Coral Springs insurance claim has been unreasonably delayed, denied, or underpaid, taking the right steps quickly can protect your rights and strengthen a future bad faith claim.

• Document everything: Keep a detailed log of every communication with your insurer, including dates, times, and what was said
• Request everything in writing: Ask for denial letters, reservation of rights letters, and coverage explanations in writing
• Preserve evidence: Don't discard damaged property or repair damage before the insurer has had a reasonable opportunity to inspect
• Obtain independent assessments: Get your own estimates, appraisals, or medical evaluations to counter the insurer's position
• Review your policy carefully: Compare the insurer's stated basis for denial against the actual policy language
• Consult a bad faith attorney before the 60-day CRN period expires: Timing is critical to preserving your claim

Florida's bad faith statutes have specific procedural requirements and deadlines. Acting promptly—and with qualified legal guidance—is essential. An attorney experienced in Florida insurance bad faith litigation can evaluate whether your insurer's conduct meets the legal threshold, prepare the Civil Remedy Notice correctly, and pursue full compensation if the insurer fails to cure.

Coral Springs policyholders should also be aware that Florida's bad faith framework applies across many insurance lines—homeowner's, auto, health, disability, and commercial policies. If your insurer has treated your valid claim unfairly in any of these contexts, the remedies described here may be available to you.

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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