Insurance Bad Faith Claims in Pembroke Pines, FL

When you file an insurance claim after a car accident, property damage, or personal injury, you expect your insurer to handle it honestly and promptly. Florida law imposes a legal duty on insurance companies to act in good faith toward their policyholders. When an insurer breaches that duty — by unreasonably delaying payment, wrongfully denying a valid claim, or refusing to settle within policy limits — the company may be liable for insurance bad faith. For residents of Pembroke Pines, understanding how bad faith claims work under Florida law can mean the difference between recovering full compensation and walking away with far less than you deserve.

What Constitutes Insurance Bad Faith Under Florida Law

Florida Statute § 624.155 governs civil bad faith actions against insurance companies. The law allows policyholders and even third-party claimants to sue an insurer when it fails to attempt in good faith to settle claims when, under all the circumstances, it could and should have done so. This is a notably broad standard compared to many other states.

Common examples of bad faith conduct include:

• Denying a claim without a reasonable investigation
• Misrepresenting policy terms or coverage provisions
• Failing to acknowledge or respond to communications within a reasonable time
• Refusing to pay a valid claim without a legitimate basis
• Offering an unreasonably low settlement amount relative to the actual damages
• Failing to settle a claim within policy limits when liability is clear, exposing the insured to an excess judgment
• Compelling a claimant to litigate by refusing reasonable settlement offers

Broward County, where Pembroke Pines is located, sees a significant volume of property insurance disputes — particularly following hurricane seasons — making bad faith claims an increasingly important area of Florida insurance law.

First-Party vs. Third-Party Bad Faith Claims

Bad faith claims fall into two broad categories, and knowing which applies to your situation shapes the legal strategy significantly.

First-party bad faith arises from the relationship between you and your own insurance company. This commonly occurs with homeowners insurance, auto insurance uninsured/underinsured motorist (UM/UIM) coverage, and disability policies. If your insurer wrongfully denies or delays payment on your own policy, you may have a first-party bad faith claim under § 624.155.

Third-party bad faith involves a liability insurer's failure to protect its insured from an excess judgment. For example, if you are injured in an accident caused by a driver whose insurer refuses to tender the policy limits despite clear liability and severe injuries, the insurer may be liable for any judgment above those limits. The injured party may also pursue a bad faith claim after obtaining an excess judgment against the at-fault driver.

An important procedural distinction: under Florida law, before filing a civil bad faith lawsuit against an insurer, you must first file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services. The insurer then has 60 days to cure the alleged violation. Failure to comply with this notice requirement can bar your bad faith claim entirely — making early legal guidance essential.

Damages Available in a Florida Bad Faith Case

One reason bad faith litigation is so significant is the scope of damages available. Unlike a standard breach of contract claim, a successful bad faith action can result in damages that exceed the original policy limits.

In a bad faith case, you may be entitled to recover:

• The full amount of the underlying judgment, even if it exceeds policy limits
• Consequential damages flowing from the insurer's bad faith conduct
• Interest on delayed payments
• Attorney's fees and court costs
• In egregious cases, punitive damages where the insurer's conduct was particularly willful or fraudulent

Florida courts have consistently held that insurers cannot hide behind policy limits when their bad faith conduct caused greater harm. The financial exposure for an insurer found to have acted in bad faith is substantial — which is why experienced legal representation levels the playing field significantly.

How Insurance Companies Avoid Paying Bad Faith Claims

Insurers operating in Pembroke Pines and throughout South Florida are sophisticated adversaries with dedicated legal teams. They employ several strategies to minimize or eliminate bad faith exposure.

Common defense tactics include arguing that the claim denial was a bona fide coverage dispute — meaning there was a genuine disagreement about policy language, not bad faith. Insurers may also contend that they conducted a reasonable investigation and that any delay was justified by complexity or missing documentation. They may point to late-submitted information from the claimant as cause for delay, or argue that settlement demands were unreasonable.

This is precisely why documentation is critical from the very beginning of your claim. Keep detailed records of every communication with your insurer — dates, times, the name of every representative you spoke with, and the substance of each conversation. Retain all written correspondence and any denial letters. Request the insurer's complete claim file through discovery if litigation becomes necessary. These records often reveal the pattern of conduct that forms the backbone of a successful bad faith claim.

Steps to Take If You Suspect Bad Faith in Pembroke Pines

If you believe your insurance company is handling your claim improperly, acting promptly and deliberately protects your legal rights.

• Request a written explanation for any denial or delay. Insurers are required under Florida law to provide specific reasons for denying coverage.
• Document everything. Create a log of all phone calls and save all written communications. Take photographs of any property damage or injuries.
• Do not accept a lowball settlement without consulting an attorney. Once you cash a settlement check, recovering additional compensation becomes significantly harder.
• File a complaint with the Florida Department of Financial Services if you believe your insurer is acting improperly. This creates an official record and may prompt the insurer to reconsider.
• Consult a bad faith attorney before filing the Civil Remedy Notice. The notice must be drafted correctly, identifying the specific statutory violations, or you may lose your right to sue.

Timing matters under Florida law. The statute of limitations for bad faith claims under § 624.155 is generally five years from the date the cause of action accrues — but the CRN requirement means the process must begin well before that deadline to preserve your rights. Do not wait until you are close to the limitations period to seek advice.

Pembroke Pines residents dealing with disputed homeowners claims, delayed auto injury settlements, or UM/UIM coverage denials have real legal recourse under Florida's robust bad faith statutes. The key is understanding that your insurer's obligation does not end with issuing a policy — it extends to fairly and promptly resolving your claim when you need it most.

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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