Insurance Bad Faith Claims in Fort Lauderdale, FL

Florida policyholders pay their premiums expecting their insurance company to act honestly and fairly when a claim arises. When an insurer deliberately delays, underpays, or wrongfully denies a valid claim, it may be committing insurance bad faith — a serious legal violation that goes beyond a simple coverage dispute. In Fort Lauderdale and throughout Broward County, bad faith claims have become increasingly common as insurers look for ways to protect their bottom line at policyholders' expense.

Florida law gives policyholders powerful tools to fight back. Understanding your rights under the Florida Bad Faith Statute is the first step toward holding an insurer accountable for its misconduct.

What Is Insurance Bad Faith Under Florida Law?

Insurance bad faith is governed primarily by Florida Statute § 624.155, which establishes both first-party and third-party bad faith claims. A first-party bad faith claim arises when your own insurer — the company you pay premiums to — treats you unfairly in handling your claim. A third-party bad faith claim arises when a liability insurer fails to settle a claim against its insured within policy limits, exposing that insured to an excess judgment.

Under Florida law, insurance companies owe a duty of good faith and fair dealing to their policyholders. This means they must:

• Promptly investigate claims after receiving notice
• Communicate clearly and honestly about coverage decisions
• Offer reasonable settlements when liability is reasonably clear
• Pay valid claims promptly without imposing unreasonable conditions
• Provide written explanations for any claim denial or underpayment

When an insurer falls short of these obligations — not through honest mistake, but through deliberate or reckless conduct — it crosses the line into bad faith.

Common Examples of Bad Faith in Fort Lauderdale

Fort Lauderdale is no stranger to insurance disputes. Broward County sees high volumes of property damage claims following hurricane season, as well as significant personal injury litigation. Across these contexts, bad faith conduct often takes predictable forms.

Unreasonable claim delays are among the most frequently reported issues. Florida's Unfair Insurance Trade Practices Act requires insurers to acknowledge claims within 14 days and make coverage decisions within 90 days. When adjusters go silent for months or request duplicate documentation repeatedly, that pattern of delay can support a bad faith claim.

Other common bad faith tactics include:

• Denying claims without conducting a thorough investigation
• Misrepresenting policy language to avoid paying benefits
• Making unreasonably low settlement offers on clear-liability claims
• Refusing to pay for covered repairs while citing exclusions that do not apply
• Pressuring policyholders to accept inadequate settlements quickly after a loss
• Hiring biased experts or engineers to undervalue property damage
• Failing to communicate settlement offers to an insured in a third-party liability case

Property insurance bad faith is particularly prevalent in South Florida. After major storm events, some insurers have been documented using low-ball estimates, switching adjusters multiple times, and disputing the cause of damage without reasonable basis — all tactics that can support a statutory bad faith claim.

The Civil Remedy Notice: A Critical Procedural Step

Before filing a bad faith lawsuit under Florida Statute § 624.155, a policyholder must first file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and serve a copy on the insurer. This notice identifies the specific bad faith violations and gives the insurer a 60-day cure period to correct the problem.

The CRN is not a mere formality — it is a prerequisite that courts take seriously. A defective or incomplete CRN can derail an otherwise valid bad faith case. The notice must specifically identify the policy provisions at issue, the facts supporting the bad faith allegation, and the damages sought. Fort Lauderdale policyholders who skip this step or file it incorrectly risk losing their right to pursue bad faith damages entirely.

If the insurer fails to cure the identified violations within 60 days, the policyholder may proceed with a civil lawsuit seeking damages that can far exceed the original policy limits.

Damages Available in a Florida Bad Faith Claim

One of the most significant aspects of a successful bad faith claim is the scope of available damages. Unlike a standard breach of contract claim — which typically limits recovery to the unpaid policy benefits — a bad faith claim can unlock significantly broader compensation.

Florida courts have allowed bad faith plaintiffs to recover:

• The full amount of the underlying judgment, even if it exceeds policy limits
• Consequential damages caused by the insurer's delay or denial, such as lost income or additional property deterioration
• Attorney's fees and court costs
• In some circumstances, extracontractual damages for financial harm caused by the insurer's misconduct

Florida does not currently allow punitive damages in statutory first-party bad faith cases, but the breadth of compensatory damages available is still substantial. In third-party bad faith cases, when an insurer refuses a reasonable settlement demand within policy limits and a plaintiff obtains an excess verdict, the insured can assign their bad faith claim to the injured party — a common litigation strategy in Broward County personal injury cases.

What to Do If You Suspect Bad Faith in Fort Lauderdale

If you believe your insurance company is acting in bad faith, taking organized, deliberate steps early can make a decisive difference in the outcome of your case.

Document everything. Keep copies of all correspondence with your insurer, including emails, letters, and notes from phone calls with dates and names. Photograph your damages thoroughly and preserve any evidence related to your claim.

Track all deadlines. Florida law imposes specific timeframes on insurers. Note the date you first reported your claim, when the adjuster inspected your property, and when you received — or failed to receive — a coverage decision.

Do not accept a lowball settlement without legal review. Insurers often move quickly to close claims for less than they are worth, particularly after storm events. Accepting a settlement and signing a release may waive your right to pursue additional compensation, including bad faith damages.

Consult an attorney before filing a Civil Remedy Notice. The CRN process requires precision. An attorney experienced in Florida bad faith law can ensure the notice identifies the correct violations, references the applicable statutes, and is filed with the proper parties — preserving your right to sue if the insurer fails to cure.

Fort Lauderdale policyholders have real legal options when their insurer refuses to play fair. Florida's bad faith statutes exist precisely because the legislature recognized that insurance companies have significant leverage over individual policyholders — and that this leverage can be abused. The law provides a meaningful check on that power, but only if policyholders know how to use it.

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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