Insurance Bad Faith Claims in Tampa, Florida

When you file an insurance claim after an accident, a hurricane, or another covered loss, you expect your insurer to act honestly and fairly. Florida law requires nothing less. But insurers sometimes delay, deny, or underpay legitimate claims without a reasonable basis — conduct that crosses the line from aggressive claims handling into what the law calls bad faith. Tampa policyholders who find themselves on the receiving end of this conduct have meaningful legal remedies available to them, including damages that can far exceed the original policy limits.

What Constitutes Bad Faith Under Florida Law

Florida recognizes two distinct categories of bad faith claims: first-party bad faith and third-party bad faith. First-party bad faith arises when your own insurer wrongfully denies or delays payment on a claim you filed — such as a homeowner's claim after Hurricane damage or an uninsured motorist claim following a car accident. Third-party bad faith occurs when a liability insurer fails to settle a claim against its insured within policy limits, exposing the insured to an excess judgment.

Florida Statute § 624.155 governs first-party bad faith claims and sets out specific conduct that qualifies as actionable. This includes an insurer's failure to attempt in good faith to settle claims when it could and should have done so, failing to promptly investigate claims, misrepresenting policy provisions, and failing to acknowledge or respond to communications within a reasonable time. The Florida Supreme Court and Florida's Second District Court of Appeal — which covers Tampa and Hillsborough County — have consistently reinforced that insurers owe their policyholders a genuine duty of good faith throughout the entire claims process.

The Civil Remedy Notice Requirement

Before filing a first-party bad faith lawsuit in Florida, a policyholder must complete a mandatory prerequisite: filing a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and serving a copy on the insurer. This notice must specify the insurer's statutory violations and give the insurer 60 days to cure the alleged violations.

This step is critical and frequently mishandled by policyholders who attempt to navigate the process without counsel. The CRN must be specific enough to put the insurer on notice of exactly what conduct is at issue. If the insurer makes a full and unconditional cure within the 60-day window, the bad faith claim cannot proceed. If it does not, the policyholder may file suit in circuit court. In Hillsborough County, these cases are heard in the Thirteenth Judicial Circuit, and local judges have developed significant experience with insurance bad faith litigation given the frequency of storm-related claims in the Tampa Bay area.

Damages Available in Florida Bad Faith Cases

One of the most powerful aspects of Florida bad faith law is the scope of recoverable damages. Unlike an ordinary breach of contract claim — where recovery is typically limited to the unpaid policy benefits — a successful bad faith claim can result in:

• The full amount of the underlying judgment, even if it exceeds the policy limits
• Consequential damages caused by the insurer's bad faith conduct, such as lost income, damage to credit, or the costs of prolonged litigation
• Attorney's fees and costs under Florida Statute § 627.428
• Punitive damages in cases involving particularly egregious or intentional misconduct

The availability of extracontractual damages — damages beyond what the policy would have paid — is what makes bad faith litigation a significant area of practice in Florida and why insurers take Civil Remedy Notices seriously when they are properly and specifically drafted.

Common Insurer Tactics That May Support a Bad Faith Claim

Tampa residents dealing with property insurers, auto insurers, or health insurers frequently report a recognizable set of tactics that, when documented, can support a bad faith claim. Recognizing these patterns early matters because contemporaneous evidence is the backbone of any bad faith case.

• Repeatedly requesting documents that have already been provided, artificially prolonging the investigation
• Issuing lowball settlement offers without a reasonable factual or legal basis
• Denying claims based on exclusions that do not actually apply to the loss
• Failing to assign an adjuster promptly after a loss or failing to conduct a site inspection
• Misrepresenting what the policy covers or how coverage provisions apply
• Making settlement offers that do not account for all covered damages
• Refusing to communicate claim status despite repeated requests

Florida Statute § 626.9541 separately prohibits unfair claim settlement practices and identifies many of these same tactics as violations. While that statute does not create a private right of action on its own, evidence of violations can be used to support a § 624.155 bad faith claim.

Steps to Protect Your Bad Faith Claim in Tampa

If you believe your insurer is handling your claim in bad faith, the actions you take in the weeks and months before litigation begins will significantly affect the strength of your case. The following steps are consistently important:

• Document everything. Keep copies of every letter, email, and adjuster communication. Note the date and content of every phone call.
• Meet all deadlines. Comply with Examination Under Oath requests, proof of loss deadlines, and any other policy requirements, even if you believe the insurer is acting unfairly. Failure to comply can undermine your position.
• Get an independent estimate. If a property claim is involved, hire a licensed public adjuster or contractor to document the full scope of the loss independently of the insurer's adjuster.
• Preserve the evidence of your loss. Photograph and video all damage before repairs are made, and retain damaged materials when possible.
• Consult an attorney before filing a Civil Remedy Notice. A defective CRN can jeopardize the entire bad faith claim. An experienced Tampa insurance attorney can ensure the notice is properly drafted and served.

Florida's insurance litigation landscape shifted considerably following legislative changes in 2023 that eliminated one-way attorney's fees under § 627.428 for most property insurance claims. However, bad faith claims brought under § 624.155 retain their own fee-shifting provisions, and the law continues to evolve in the courts. Working with an attorney who actively practices in Hillsborough County and understands the current state of Florida insurance law is essential.

Insurance companies are sophisticated businesses with legal departments and experienced claims teams focused on minimizing what they pay. Policyholders who understand their rights and act quickly to preserve evidence and meet procedural requirements are in the strongest position to hold their insurer accountable.

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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