Insurance Bad Faith Claims in Hollywood, FL

Florida policyholders pay premiums expecting their insurance company to handle claims fairly and promptly. When an insurer deliberately delays, denies, or underpays a legitimate claim, that conduct may rise to the level of insurance bad faith — a legal cause of action that can entitle you to damages far exceeding your original policy limits. Hollywood, Florida residents dealing with unresponsive or manipulative insurers have specific legal protections under Florida law.

What Constitutes Insurance Bad Faith in Florida

Florida Statute § 624.155 governs civil bad faith claims against insurance companies. The law imposes a duty of good faith and fair dealing on every insurer operating in the state. A carrier commits bad faith when it fails to attempt in good faith to settle claims when it could and should have done so.

Common examples of bad faith conduct in Hollywood and throughout Broward County include:

• Unreasonable delays in investigating or responding to a claim
• Denying a claim without conducting a proper investigation
• Misrepresenting policy terms or coverage provisions
• Offering a settlement substantially below the claim's actual value
• Refusing to pay a valid claim without a reasonable basis
• Failing to communicate claim decisions within statutory timeframes
• Pressuring policyholders to accept inadequate settlements

Both first-party bad faith (your own insurer against you) and third-party bad faith (a liability insurer protecting an at-fault party) are actionable in Florida.

Florida's Civil Remedy Notice Requirement

Before filing a bad faith lawsuit in Florida, most policyholders must first file a Civil Remedy Notice (CRN) with the Florida Department of Insurance. This is a mandatory prerequisite under § 624.155(3)(a) and a step that many claimants miss, fatally undermining their case.

The CRN must specifically identify the insurer, the policy number, the claim number, and the precise statutory provisions the insurer allegedly violated. Once filed, the insurance company has 60 days to cure the violation by paying the claim or otherwise correcting the bad faith conduct. If the insurer cures within that window, the bad faith claim is extinguished. If it does not, you may proceed to litigation.

This notice-and-cure period is unique to Florida and distinguishes state bad faith practice from federal standards. Missing this step or filing an incomplete CRN can bar your claim entirely, which is why working with an attorney from the outset matters.

Damages Available in a Bad Faith Case

One of the most powerful aspects of a successful bad faith claim is the potential for extracontractual damages — compensation that goes beyond the original policy limits. In a third-party bad faith case, for example, if an insurer refuses to settle a bodily injury claim within policy limits and a jury later returns a verdict in excess of those limits, the insurer may be responsible for the entire verdict amount, including the portion exceeding the policy.

In first-party bad faith cases under § 624.155, compensable damages can include:

• The full amount of the underlying insurance claim
• Consequential damages flowing from the insurer's misconduct
• Attorney's fees and court costs
• Interest on delayed payments
• In cases of particularly egregious conduct, punitive damages

Florida courts have consistently held that the insurer's conduct must be evaluated based on what it knew at the time it made its claims decisions, not what was later revealed during litigation. This means documentation you gather early in the process — denial letters, adjuster notes, internal communications obtained through discovery — can prove decisive.

Bad Faith and Hurricane or Property Damage Claims in Hollywood

Hollywood's coastal location and exposure to severe weather make property insurance disputes particularly common. After major storms, insurers often deploy independent adjusters who may systematically undervalue structural damage, mold intrusion, or roof losses. When a carrier assigns an adjuster whose estimates are consistently and dramatically lower than contractor bids, or when it invokes policy exclusions without genuine basis, bad faith may be actionable.

Florida's Assignment of Benefits (AOB) reforms under SB 2D (2022) changed how property claims can be assigned, but did not eliminate the insurer's obligation to act in good faith directly with the policyholder. Homeowners in Broward County who have received lowball settlement offers, experienced prolonged claim delays following a hurricane, or been told their covered damage falls under an inapplicable exclusion should have their situation evaluated by an attorney before accepting any settlement.

Keep all written communications with your insurer, retain repair estimates from independent contractors, photograph all damage thoroughly, and never sign a full release without understanding what rights you are waiving.

Steps to Take If You Suspect Bad Faith

If you believe your insurance company is not handling your claim honestly, take the following steps promptly:

• Document everything: Save all letters, emails, and notes from phone calls including dates and the name of every representative you speak with.
• Request everything in writing: Ask for denial reasons, coverage interpretations, and claim status updates in writing.
• Obtain an independent appraisal: For property claims, get estimates from licensed contractors before settling.
• Review your policy carefully: Understand what is covered, what deadlines apply, and what duties you owe the insurer during the claims process.
• Consult an attorney before the CRN deadline: Florida's statute of limitations for bad faith is generally five years, but procedural requirements can cut that window significantly shorter in practice.

Hollywood residents also have access to the Florida Department of Financial Services, which regulates insurance companies and accepts consumer complaints. Filing a complaint does not replace legal action, but it creates a formal record of your grievance and sometimes prompts an insurer to reassess its position.

Insurance companies have teams of lawyers and adjusters working to minimize every payout. A qualified bad faith attorney levels that playing field, handles the CRN filing, preserves your rights under Florida law, and pursues every dollar of compensation the insurer's misconduct has cost 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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