Insurance Bad Faith Claims in Hollywood, FL

When you file an insurance claim after an accident, illness, or property loss, you expect your insurer to handle it fairly and promptly. Florida law requires this. Insurance companies collect premiums with the promise that they will pay valid claims—and when they deliberately delay, deny, or undervalue those claims without reasonable justification, they may be acting in bad faith. In Hollywood, Florida, policyholders have strong legal protections, and understanding those rights can make the difference between recovering what you deserve and walking away with far less.

What Is Insurance Bad Faith Under Florida Law?

Florida recognizes two categories of bad faith insurance claims. The first is first-party bad faith, which arises when your own insurer fails to deal fairly with you when handling your claim. The second is third-party bad faith, which occurs when a liability insurer fails to settle a claim against its policyholder within policy limits, exposing that policyholder to an excess judgment.

Florida Statute § 624.155 governs first-party bad faith claims and establishes specific conduct that qualifies as bad faith, including:

• Failing to attempt to settle claims in good faith when the insurer could and should have done so
• Failing to promptly acknowledge and respond to communications about a claim
• Denying claims without conducting a reasonable investigation
• Making claim payments accompanied by misleading statements
• Failing to promptly provide a reasonable explanation for a denial

Third-party bad faith is governed by common law in Florida. The landmark case Boston Old Colony Insurance Co. v. Gutierrez established that liability insurers have a duty to act with the same degree of care and diligence as a person of ordinary care and prudence. When an insurer fails to settle within policy limits and a verdict exceeds those limits, the policyholder—and often the injured party as the policyholder's assignee—can pursue the insurer for the full excess amount.

Common Bad Faith Tactics Used by Insurers in Hollywood

Hollywood is part of Broward County, a region with a high volume of property damage, auto accident, and personal injury claims. Insurers operating here sometimes resort to tactics designed to minimize payouts rather than honor their contractual obligations. Recognizing these tactics is the first step toward fighting back.

• Unreasonable delays: Sitting on a claim for months, requesting unnecessary documents repeatedly, or failing to respond to calls and emails without justification
• Lowball offers: Offering a fraction of actual damages, particularly common in hurricane and water damage claims affecting Hollywood's coastal properties
• Misrepresenting policy terms: Telling claimants that coverage does not exist when it does, or mischaracterizing the scope of applicable exclusions
• Biased investigations: Hiring adjusters or experts whose job is to find reasons to deny coverage rather than assess damages objectively
• Failure to communicate decisions: Leaving policyholders in the dark about claim status without written explanation

These tactics are especially damaging when claimants are already under financial and emotional stress from a loss. Florida law does not permit insurers to exploit that vulnerability.

The Civil Remedy Notice: A Critical Procedural Step

Before filing a first-party bad faith lawsuit under § 624.155, Florida law requires that the claimant file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services. This notice must identify the specific violations, the policy at issue, and the circumstances of the alleged bad faith conduct. The insurer then has 60 days to cure the violation by paying the full claim amount or otherwise correcting the bad faith conduct.

This procedural requirement is often misunderstood and mishandled. Filing the CRN too early, too late, or with insufficient specificity can jeopardize your right to pursue a bad faith claim entirely. An attorney familiar with Florida's bad faith framework will ensure the notice is filed correctly and that the 60-day cure period is monitored carefully. If the insurer fails to cure, the path to litigation is open and the full range of bad faith damages becomes available.

What Damages Are Available in a Bad Faith Case?

Bad faith litigation in Florida can yield significantly more than a standard breach of contract claim. When an insurer is found to have acted in bad faith, a Hollywood plaintiff may be entitled to recover:

• The full amount of the original claim, including any portion that was wrongfully denied or underpaid
• Consequential damages that resulted from the insurer's misconduct, such as additional financial losses suffered while waiting for payment
• Attorney's fees and court costs under Florida law
• In third-party cases, the entire excess judgment beyond policy limits

Florida does not currently allow punitive damages in statutory first-party bad faith cases under § 624.155, but the compensatory damages available—including consequential losses and fees—can be substantial. In third-party bad faith cases pursued under common law, punitive damages may be recoverable depending on the facts.

Steps to Take If You Suspect Bad Faith in Hollywood

If your insurer is dragging its feet, misrepresenting your coverage, or denying a claim that should be paid, take the following steps immediately:

• Document everything: Keep records of every call, email, letter, and adjuster visit. Note the date, time, and content of all communications.
• Request everything in writing: Ask for denial letters, claim determinations, and policy interpretations in writing so there is a documented record of the insurer's stated positions.
• Get an independent assessment: For property damage claims, hire your own public adjuster or contractor to document the full extent of your loss before an insurer's repair estimate becomes the baseline.
• Review your policy: Understand your coverage, deadlines for reporting claims, and any appraisal or dispute resolution clauses that may apply.
• Consult an attorney promptly: Florida's bad faith process has strict procedural requirements and time limits. Waiting too long can forfeit rights that cannot be recovered.

Hollywood residents dealing with homeowners, auto, health, or commercial insurance disputes should be aware that the statute of limitations for bad faith claims is generally five years from the date the cause of action accrues, but the timeline is complex and dispute-dependent. Earlier is always better when it comes to preserving evidence and meeting procedural requirements.

Florida's Insurance Code exists to protect policyholders, not insurers. When companies prioritize profits over their contractual and legal obligations, they can and should be held accountable. A qualified bad faith attorney in the Hollywood and Broward County area understands the local courts, common insurer tactics, and how to build a case that compels a fair resolution—whether through settlement or trial.

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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