Insurance Bad Faith Claims in Tampa, Florida

When you file an insurance claim after an accident, illness, or property loss, you expect your insurer to handle it fairly and promptly. Florida law imposes a legal duty on insurance companies to deal honestly with their policyholders. When an insurer deliberately delays, denies, or underpays a valid claim without a reasonable basis, that conduct can constitute insurance bad faith — and Tampa policyholders have meaningful legal remedies available to them.

What Is Insurance Bad Faith Under Florida Law?

Florida recognizes two distinct types of bad faith claims: first-party bad faith and third-party bad faith. First-party bad faith arises when your own insurer fails to handle your claim in good faith — for example, when your health insurer, homeowner's insurer, or uninsured motorist carrier wrongfully denies or undervalues your claim. 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.

The governing statute is Florida Statute § 624.155, which creates a civil remedy against insurers that engage in bad faith conduct. The statute specifically prohibits insurers from:

• Failing to attempt in good faith to settle claims when liability is reasonably clear
• Not attempting to resolve claims promptly and equitably
• Compelling insureds to initiate litigation to recover amounts clearly owed under a policy
• Failing to provide a reasonable explanation for the denial of a claim
• Misrepresenting facts or policy provisions related to a claim

Florida also incorporates the Florida Unfair Insurance Trade Practices Act, which sets minimum standards for how insurers must investigate and respond to claims. Violations of these standards can form the foundation of a bad faith lawsuit.

The Civil Remedy Notice Requirement

Before filing a bad faith lawsuit under § 624.155, policyholders in Tampa and throughout Florida must first file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services. This notice formally notifies both the insurer and the state of the alleged bad faith conduct.

Once the CRN is filed, the insurer has 60 days to cure the violation by paying the full amount of the claim or otherwise remedying the conduct. If the insurer fails to cure within that window, you may proceed with a bad faith lawsuit. This notice-and-cure requirement is a critical procedural step — missing it can result in dismissal of your case, regardless of how strong the underlying bad faith conduct may be.

Importantly, the underlying coverage dispute must typically be resolved first. Courts have generally held that a bad faith claim is not ripe until the insurer's liability under the policy has been established, either through settlement, judgment, or appraisal. This means the bad faith claim often proceeds in stages.

Common Examples of Bad Faith in Tampa Insurance Disputes

Tampa residents encounter bad faith conduct across multiple lines of insurance. Some of the most frequently litigated scenarios include:

• Homeowner's insurance claims: After hurricanes, flooding, or fire, insurers sometimes conduct inadequate inspections, lowball repair estimates, or deny claims by misclassifying covered damage as excluded causes like "wear and tear."
• Uninsured/underinsured motorist (UM/UIM) claims: Insurers may dispute the severity of injuries or drag out investigations to pressure claimants into accepting inadequate settlements.
• Auto insurance claims: Unreasonable delays in processing total loss determinations or failing to pay rental car benefits while a claim is pending.
• Health and disability insurance: Repeated requests for the same documentation, unexplained denials, or misrepresentation of policy exclusions.
• Commercial property claims: Business owners in Tampa's active commercial market are frequent targets of bad faith practices when insurers dispute business interruption losses or underpay structural damage claims.

What Damages Are Available in a Florida Bad Faith Case?

One of the most significant aspects of a successful bad faith claim is the expanded scope of damages available beyond the original policy limits. In a standard breach of contract case, damages are limited to the amount owed under the policy. In a bad faith case, however, a court may award:

• The full amount of the underlying claim, including any judgment that exceeds policy limits in third-party cases
• Consequential damages caused by the insurer's bad faith conduct, such as lost income or additional property damage resulting from delayed repairs
• Attorney's fees and costs under § 627.428, Florida Statutes
• Interest on amounts wrongfully withheld
• In egregious cases, punitive damages may be available if the insurer's conduct was particularly willful or malicious

The availability of extra-contractual damages is what makes bad faith claims uniquely powerful tools for policyholders. It shifts the financial calculus dramatically and incentivizes insurers to deal fairly from the outset.

Steps to Take If You Suspect Bad Faith in Your Tampa Claim

If you believe your insurer is acting in bad faith, the actions you take in the early stages of a dispute can significantly affect your legal options later. Start by documenting everything — keep copies of all correspondence, claim submissions, denial letters, and notes from phone conversations with adjusters. Request the insurer's claim file in writing, as Florida law entitles policyholders to inspect their own claim files.

Do not accept a settlement offer under pressure without understanding the full value of your claim. Insurers sometimes make quick, low offers immediately after a loss, before the full extent of damages is known. Accepting such an offer and signing a release may permanently foreclose your right to additional recovery.

Consult with an attorney who handles insurance bad faith litigation before filing your Civil Remedy Notice. The CRN must precisely identify the statutory provisions violated and the specific conduct at issue — a defective notice can undermine your entire case. An experienced attorney can review your claim file, assess whether bad faith conduct occurred, and draft an effective CRN that preserves your rights.

Finally, pay attention to deadlines. Florida's statute of limitations for bad faith claims under § 624.155 is generally five years, but the clock typically does not start running until the underlying coverage dispute is resolved. Do not assume that delay on your part is without consequence — evidence can be lost and witnesses' memories fade over time.

Tampa policyholders who have been wronged by their insurers have real legal leverage under Florida law. Bad faith litigation holds insurers accountable and can result in recoveries that far exceed the original disputed claim amount. The key is acting deliberately, preserving your evidence, and working with counsel who understands the specific procedural requirements Florida imposes on these claims.

Need Help? If you have questions about your case, call or text 833-657-4812 for a free consultation with an experienced attorney.

Related Articles

• House Fire Insurance Claim Denied in Florida
• Foundation Damage Insurance Claims in Fort Lauderdale
• Fort Lauderdale Mold Damage Lawyer