Insurance Bad Faith Claims in Jacksonville, FL

Florida policyholders purchase insurance with a reasonable expectation that their insurer will honor the contract when a loss occurs. When an insurance company deliberately delays, denies, or underpays a valid claim without a reasonable basis, it may be acting in bad faith. In Jacksonville and throughout Florida, state law provides powerful remedies for policyholders who have been wronged by their insurers — including the right to recover damages far beyond the original policy limits.

What Constitutes Insurance Bad Faith in Florida

Florida Statute § 624.155 governs bad faith claims against insurance companies. Under this statute, an insurer acts in bad faith when it fails to attempt in good faith to settle claims when it could and should have done so — or when it fails to promptly and fairly investigate, evaluate, and pay valid claims.

Common examples of insurance bad faith conduct include:

• Unreasonably denying a legitimate claim without a proper investigation
• Deliberately delaying payment to pressure a policyholder into accepting a lower settlement
• Misrepresenting policy terms or coverage provisions to avoid paying a claim
• Failing to communicate promptly with the policyholder or their attorney
• Offering a settlement amount the insurer knows is far below the claim's true value
• Refusing to settle within policy limits when liability is reasonably clear
• Canceling a policy in retaliation for filing a claim

Both first-party bad faith — where your own insurer mistreats you — and third-party bad faith — where another party's insurer exposes you to excess liability — are actionable under Florida law.

The Civil Remedy Notice Requirement

Before filing a statutory bad faith lawsuit in Florida, 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 is a mandatory prerequisite that cannot be skipped.

The CRN gives the insurance company a 60-day window to cure the alleged bad faith violation by paying the full amount of the claim, adjusting the settlement, or otherwise remedying the conduct identified. If the insurer cures the violation within that period, the bad faith claim is extinguished. If it fails to do so, the policyholder may proceed with litigation.

Properly drafting a Civil Remedy Notice is critical. A notice that is too vague, fails to identify the specific statutory violation, or omits relevant facts can be challenged by the insurer and may undermine your case. Jacksonville policyholders should work with an experienced attorney before submitting a CRN to ensure it is legally sufficient and strategically sound.

Damages Available in a Florida Bad Faith Case

One of the most significant aspects of Florida's bad faith law is the scope of damages available to a prevailing policyholder. Unlike a standard breach of contract action, a successful bad faith claim can result in recovery that exceeds the policy limits entirely.

Damages that may be recoverable include:

• The full value of the underlying claim, regardless of policy limits
• Consequential damages that flowed from the insurer's bad faith conduct
• Emotional distress and mental anguish in certain circumstances
• Attorney's fees and costs under Florida Statute § 627.428
• Interest on delayed payments

Florida Statute § 627.428 independently authorizes an award of attorney's fees against an insurer that wrongfully denies a claim and loses at trial. This provision is a powerful incentive for insurers to deal fairly — and a meaningful protection for policyholders who might otherwise be unable to afford litigation.

Jacksonville-Specific Considerations for Bad Faith Claims

Jacksonville, as the largest city in Florida by land area and home to Duval County, sees a significant volume of insurance disputes — particularly following hurricane seasons and tropical weather events that regularly affect Northeast Florida. After major storms, homeowners frequently encounter insurers that lowball structural damage estimates, improperly invoke depreciation calculations, or deny wind and water damage claims based on questionable engineering reports.

The Jacksonville area also has a high volume of auto insurance bad faith disputes, particularly involving uninsured and underinsured motorist (UM/UIM) coverage. Florida remains one of the leading states for UM litigation, and bad faith claims arising from UM coverage disputes are particularly common when insurers drag out the claims process or refuse to pay the full extent of an insured's damages after a serious collision.

Cases in Duval County are heard in the Fourth Judicial Circuit Court. Jacksonville policyholders benefit from working with attorneys who are familiar with local court procedures, judicial temperament, and the litigation practices of insurance defense firms commonly retained in this market.

Steps to Protect Your Bad Faith Claim

If you believe your insurance company is acting in bad faith, taking immediate, deliberate steps can preserve your legal rights and strengthen any future claim.

• Document everything. Keep copies of all correspondence with your insurer, including emails, letters, and notes from phone calls with dates, times, and the name of the representative you spoke with.
• Do not accept a settlement that undervalues your claim. Accepting a lowball offer may limit your ability to pursue further compensation.
• Request a written explanation for any denial. Insurers are required to provide written reasons for denying claims. A vague or unsupported denial can be powerful evidence of bad faith.
• Obtain an independent appraisal or expert evaluation. For property or medical claims, independent experts can counter an insurer's self-serving valuations.
• Consult an attorney before filing a Civil Remedy Notice. The 60-day window the insurer receives runs from receipt of the CRN, so strategic timing matters.
• Act promptly. Florida's statute of limitations for bad faith claims is typically five years, but waiting too long can result in lost evidence and weakened claims.

Insurance companies have teams of adjusters, lawyers, and claims personnel working to minimize their financial exposure. Policyholders who face bad faith conduct deserve equally skilled representation to level the playing field. Florida's bad faith statutes were enacted specifically to hold insurers accountable when they prioritize profits over the policyholders they are contractually and legally obligated to protect.

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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