Insurance Bad Faith Claims in West Palm Beach, FL

When you file an insurance claim after an accident, illness, or property loss, you expect your insurer to handle it honestly and promptly. Florida law requires nothing less. But insurance companies sometimes deny valid claims, drag out investigations, or offer settlements far below what policyholders deserve. When that happens, you may have a bad faith insurance claim — and Florida law provides powerful remedies.

West Palm Beach residents dealing with unresponsive or manipulative insurers have legal options that go beyond the value of the original claim. Understanding how Florida's bad faith statutes work can mean the difference between accepting an inadequate settlement and recovering full compensation.

What Constitutes Insurance Bad Faith in Florida

Florida Statute § 624.155 governs civil bad faith claims against insurance companies. The law imposes a legal duty on insurers to deal fairly and in good faith with their policyholders. Violations occur when an insurer:

• Denies a claim without conducting a reasonable investigation
• Fails to pay a valid claim within a reasonable time
• Offers a settlement substantially lower than the amount ultimately recovered
• Misrepresents policy provisions or coverage terms
• Refuses to settle a third-party claim within policy limits when liability is clear
• Fails to promptly acknowledge or respond to communications about a claim

Florida recognizes both first-party bad faith — where the insurer mistreats its own policyholder — and third-party bad faith, where an insurer fails to protect an insured from excess liability by refusing to settle within policy limits. Both carry serious legal consequences under Florida law.

The Civil Remedy Notice Requirement

Before filing a bad faith lawsuit in Florida, policyholders must complete a critical procedural step: submitting a Civil Remedy Notice (CRN) to the Florida Department of Financial Services and the insurance company. This notice must specifically identify the policy, the claim, and the alleged violations.

Once the CRN is filed, the insurer has 60 days to cure the violation. If the insurer pays the full amount of damages or otherwise corrects the conduct within that window, the bad faith claim cannot proceed. This requirement exists to give insurers an opportunity to resolve disputes before litigation — but many fail to take advantage of it, and the clock then starts running toward a lawsuit.

Failing to file a proper CRN will bar your bad faith claim entirely. West Palm Beach policyholders should work with an experienced attorney immediately upon recognizing potential bad faith conduct to preserve this right.

Damages Available in a Florida Bad Faith Case

One of the most significant aspects of Florida bad faith law is the scope of damages available. Unlike a standard breach of contract claim limited to policy benefits, a successful bad faith action can recover:

• The full value of the underlying claim, even if it exceeds policy limits
• Consequential damages caused by the insurer's delay or misconduct
• Attorney's fees and court costs
• Interest on unpaid amounts
• In cases of particularly egregious conduct, punitive damages

The threat of extra-contractual damages — particularly verdicts that pierce policy limits — is often what motivates insurers to finally engage in good-faith settlement discussions. For Palm Beach County residents, these remedies create real leverage that policyholders would not otherwise have in a standard coverage dispute.

Common Bad Faith Scenarios in West Palm Beach

Palm Beach County's busy roadways, frequent severe weather, and large population of property owners create fertile ground for insurance disputes. Common situations that escalate into bad faith claims include:

• Hurricane and windstorm claims where insurers lowball damage estimates or cite pretextual exclusions to deny coverage
• Auto accident claims where a liability insurer refuses to settle within policy limits despite clear negligence by its insured
• Homeowner's claims denied on vague grounds after lengthy, unexplained investigations
• Disability and health insurance disputes where valid claims are repeatedly delayed or denied without adequate explanation
• Slip-and-fall or premises liability cases where a commercial insurer refuses to offer reasonable compensation despite documented injuries

Insurance companies operating in South Florida often deploy aggressive claim-handling tactics knowing that many policyholders will not pursue litigation. Recognizing these patterns early is essential to protecting your rights.

Steps to Take If You Suspect Bad Faith

If you believe your insurer is handling your claim improperly, act methodically and document everything. The strength of a bad faith case depends heavily on the paper trail you build from the outset.

• Document all communications — save emails, record dates of phone calls, and follow up verbal conversations in writing
• Request written explanations for any denial or delay, and demand specific policy language the insurer is relying upon
• Keep records of all losses caused by the insurer's delay, including additional expenses, lost income, or worsened damages
• Obtain independent appraisals to counter lowball damage estimates with objective documentation
• Consult an attorney before accepting any settlement — signing a release waives your right to further claims, including bad faith

Florida's statute of limitations for bad faith claims is generally five years from the date the cause of action accrues, but waiting diminishes the quality of evidence and the leverage you hold. The sooner you engage legal counsel, the better positioned you will be.

West Palm Beach policyholders should understand that insurance companies have teams of experienced adjusters, attorneys, and consultants working to minimize what they pay. Having an attorney who understands Florida's bad faith framework levels the playing field and signals to the insurer that you are prepared to hold them 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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