Insurance Delay Tactics in Florida Bad Faith Claims

When policyholders in Cape Coral and throughout Florida file legitimate insurance claims, they expect their insurance companies to process these claims promptly and fairly. Unfortunately, many insurers employ deliberate delay tactics to avoid paying valid claims, hoping policyholders will either accept lowball settlements or simply give up. These delay strategies may constitute bad faith under Florida law, entitling victims to additional damages beyond their original claim amount.

Understanding Bad Faith Insurance Under Florida Law

Florida Statutes Section 624.155 requires insurance companies to handle claims in good faith. This means insurers must investigate claims promptly, communicate honestly with policyholders, and either pay or deny claims within a reasonable timeframe. When an insurance company unreasonably delays processing or paying a valid claim, it may be liable for bad faith.

Bad faith claims in Florida fall into two categories: first-party and third-party bad faith. First-party bad faith occurs when an insurer fails to properly handle a claim from its own policyholder. Third-party bad faith involves an insurer's failure to settle a claim against its insured within policy limits, exposing the insured to excess liability. Delay tactics feature prominently in both types of bad faith cases.

The Florida Supreme Court has established that insurance companies owe policyholders a duty to act with good faith and fair dealing. This includes investigating claims thoroughly and promptly, responding to communications in a timely manner, and not placing the insurer's financial interests above the policyholder's legitimate claim.

Common Delay Tactics Used by Florida Insurance Companies

Insurance companies employ numerous strategies to delay claim resolution. Recognizing these tactics helps policyholders identify potential bad faith and take appropriate action:

• Excessive documentation requests: Demanding unnecessary documents repeatedly or requesting information already provided multiple times
• Understaffing claims departments: Deliberately maintaining insufficient staff to handle claim volume, resulting in systemic delays
• Unresponsive adjusters: Failing to return phone calls, emails, or correspondence for weeks or months
• Repeated claim reassignments: Transferring claims between adjusters, requiring policyholders to restart the process
• Unnecessary investigations: Conducting prolonged investigations for straightforward claims that should be resolved quickly
• Missing deadlines: Ignoring statutory deadlines for acknowledging claims, beginning investigations, or providing claim decisions
• Low-ball offers followed by silence: Making inadequate settlement offers then becoming unresponsive when rejected
• Requiring multiple inspections: Scheduling numerous property inspections that yield no new information
• Misrepresenting policy provisions: Falsely claiming policy language requires additional time or information

Florida's Statutory Timeframes for Insurance Claims

Florida law establishes specific deadlines that insurance companies must meet when handling claims. These statutory requirements provide objective standards for determining whether delays constitute bad faith.

Under Florida Statutes Section 627.70131, property insurance companies must acknowledge communications regarding claims within 14 calendar days. They must begin investigating claims within specified timeframes depending on the type of claim. For hurricane claims, insurers have specific, often shorter deadlines.

Insurance companies must provide written notice accepting or denying claims within 90 days after receiving proof of loss statements, unless they have a valid reason for additional time. When insurers need more time, they must provide written notice explaining the specific reasons and information needed. Failure to meet these deadlines without legitimate justification may constitute bad faith.

Additionally, Florida Statutes Section 627.426 addresses claim payments, requiring insurers to pay undisputed portions of claims even when disputes exist over other portions. Withholding payment on undisputed claim amounts while investigating disputed portions represents another delay tactic that may support bad faith allegations.

How Delay Tactics Harm Florida Policyholders

Insurance company delays cause significant harm to Cape Coral residents and other Florida policyholders beyond simple inconvenience. When insurers unreasonably delay paying property damage claims, policyholders face mounting repair costs, additional property damage from exposure to elements, and potential health hazards from mold or structural issues.

Financial hardship often results from claim delays. Policyholders may deplete savings, accrue credit card debt, or take high-interest loans to cover living expenses or temporary repairs. Some lose their homes to foreclosure when they cannot pay mortgages while waiting for insurance payments.

The emotional toll of fighting with insurance companies causes stress, anxiety, and family discord. Many policyholders feel powerless against large insurance corporations with vast resources and legal teams designed to minimize payouts.

Delay tactics also achieve their intended purpose: many frustrated policyholders eventually accept inadequate settlements just to end the ordeal. This allows insurance companies to profit from their misconduct by paying less than they owe under the policy.

Taking Action Against Insurance Delay Tactics

Policyholders experiencing unreasonable delays should document everything. Keep detailed records of all communications, including dates, times, names of representatives, and conversation summaries. Save all correspondence, emails, text messages, and letters. Photograph or video document property damage and any worsening conditions.

Send written communications to create paper trails. When insurers make verbal promises or explanations, follow up with emails or letters confirming the conversation. Request written explanations for delays and denials of information requests.

Florida law requires policyholders to exhaust administrative remedies before filing bad faith lawsuits in most situations. This typically means receiving a final claim denial or unreasonably delayed resolution. However, consulting with an experienced bad faith attorney early helps preserve rights and build strong cases.

Attorneys specializing in insurance bad faith understand Florida's complex insurance laws and can evaluate whether delays constitute actionable bad faith. They can communicate with insurance companies on your behalf, often prompting faster responses. When necessary, bad faith attorneys can file lawsuits seeking not only the policy benefits owed but also consequential damages, attorney's fees, and in some cases, punitive damages designed to punish egregious insurer conduct.

The Florida Department of Financial Services also accepts complaints against insurance companies. While filing complaints may not directly resolve individual claims, patterns of complaints can trigger regulatory investigations and enforcement actions.

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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