Insurance Bad Faith Claims in Port St. Lucie, FL

When a Port St. Lucie resident files an insurance claim after a car accident, hurricane damage, or personal injury, they trust their insurer to handle that claim fairly and promptly. Florida law imposes a legal duty on insurance companies to do exactly that. When insurers breach that duty—delaying, underpaying, or outright denying legitimate claims without a reasonable basis—policyholders may have a powerful legal remedy: a bad faith insurance claim.

Bad faith litigation holds insurance companies accountable for misconduct that goes beyond a simple claim dispute. If you are dealing with an uncooperative insurer in Port St. Lucie or the broader St. Lucie County area, understanding your rights under Florida law is the first step toward recovering what you are owed.

What Constitutes Insurance Bad Faith in Florida

Florida Statutes Section 624.155 governs civil bad faith actions 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 under the circumstances. Courts look at the totality of the insurer's conduct when evaluating a bad faith claim.

Common examples of bad faith conduct by Florida insurers include:

• Unreasonably delaying the investigation or payment of a valid claim
• Denying a claim without conducting a thorough investigation
• Offering a settlement far below the documented value of the claim
• Misrepresenting policy terms or coverage provisions to a policyholder
• Failing to communicate settlement offers or demands to the insured
• Canceling or threatening to cancel a policy as leverage in a claim dispute
• Refusing to pay a judgment after a covered verdict

Florida also recognizes third-party bad faith claims. These arise when a liability insurer fails to settle a claim against its policyholder within policy limits, exposing the insured to an excess judgment. In that scenario, the injured plaintiff may step into the insured's shoes and pursue the insurer directly.

The Civil Remedy Notice: Florida's Required First Step

Before filing a bad faith lawsuit in Florida, policyholders must comply with a critical procedural requirement. Florida Statute Section 624.155(3) requires that a plaintiff first file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and serve a copy on the insurer.

The CRN identifies the specific bad faith violations alleged, the policy at issue, and the damages suffered. Once the notice is served, the insurer has 60 days to cure the violation—meaning it can pay the claim, offer a reasonable settlement, or otherwise correct the conduct. If the insurer cures within 60 days, the bad faith claim is extinguished. If it does not, the policyholder may proceed to file suit.

This pre-suit requirement has strict procedural nuances. A defective or improperly filed CRN can derail an otherwise valid bad faith case. Port St. Lucie residents should not attempt to navigate this process without the guidance of an attorney familiar with Florida's insurance statutes.

Damages Available in a Bad Faith Case

One of the most significant aspects of Florida bad faith law is the scope of potential damages. Unlike an ordinary breach of contract claim—which typically limits recovery to the policy limits—a successful bad faith claim can result in damages that exceed the policy limits.

Compensable damages in a Florida bad faith action may include:

• The full amount of the underlying claim, even if it surpasses policy limits
• Consequential damages caused by the insurer's delay or denial
• Attorneys' fees and court costs under Florida Statute Section 627.428
• In egregious cases, punitive damages if the insurer's conduct was fraudulent or willful

Florida Statute Section 627.428 is particularly valuable to policyholders. It mandates that a court award attorney's fees against an insurer that wrongfully denies a claim or forces unnecessary litigation. This fee-shifting provision levels the playing field and allows Port St. Lucie residents to pursue legitimate claims without bearing prohibitive legal costs out of pocket.

First-Party vs. Third-Party Bad Faith in Port St. Lucie

Florida bad faith law applies in two distinct contexts, and the strategy for each differs meaningfully.

First-party bad faith involves a dispute between you and your own insurer—for example, a homeowner's insurer denying a hurricane or flood claim, or a PIP carrier refusing to pay medical bills after a car accident. Port St. Lucie sits in a region vulnerable to tropical storms and flooding, making first-party property insurance disputes a common source of bad faith litigation in St. Lucie County.

Third-party bad faith arises most often in personal injury cases. Suppose you are seriously injured by a driver whose liability insurer refuses to offer the policy limits despite clear liability and documented damages. If the case goes to trial and a verdict exceeds the policy limits, the insurer may be liable for that entire excess amount under a bad faith theory. Attorneys in these cases often issue a time-limited demand letter—sometimes called a Coblentz agreement demand—to create a bad faith record before suit is filed.

What Port St. Lucie Policyholders Should Do

If you believe your insurer is mishandling your claim, taking prompt, documented steps can preserve and strengthen a future bad faith case.

• Document everything. Keep copies of every letter, email, and phone log with your insurer. Note the dates and content of all communications.
• Request everything in writing. Ask for all claim decisions, denial reasons, and settlement offers in writing. Verbal representations are difficult to prove later.
• Preserve your evidence. Photographs of damage, medical records, repair estimates, and witness statements all support both your underlying claim and a subsequent bad faith action.
• Track all deadlines. Florida law imposes specific timeframes on insurers for acknowledging claims, beginning investigations, and making payment decisions. Your attorney can identify whether the insurer violated any statutory deadlines.
• Consult an attorney early. The sooner you involve an experienced bad faith attorney, the better protected your rights will be throughout the claims process.

Port St. Lucie residents should be aware that Florida's insurance landscape has been in flux in recent years. Legislative reforms have altered the bad faith statute, and recent court decisions continue to shape how these claims proceed. Working with a local attorney who monitors these developments can make a meaningful difference in the outcome of your case.

Insurance companies employ teams of adjusters, investigators, and defense attorneys whose job is to minimize payouts. Policyholders who attempt to negotiate alone are at a serious disadvantage. A qualified bad faith attorney can analyze your insurer's conduct, prepare and file the Civil Remedy Notice correctly, and position your case for maximum recovery—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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