Insurance Delay Tactics in Florida Bad Faith Claims

Florida insurance companies are legally required to handle claims promptly and in good faith. Yet many insurers deliberately stall, obstruct, and undervalue legitimate claims — tactics that cost policyholders thousands of dollars and months of unnecessary stress. If you have a property insurance claim in St. Petersburg or anywhere in Florida, understanding how insurers delay and what you can do about it is essential to protecting your rights.

What Counts as Bad Faith Under Florida Law

Florida Statute § 624.155 governs bad faith insurance claims and gives policyholders a powerful legal tool against insurers who act dishonestly or unreasonably. Under this law, an insurer commits bad faith when it fails to attempt in good faith to settle claims when it could and should have done so, or when it does not promptly investigate and pay valid claims.

Before filing a bad faith lawsuit in Florida, you must first submit a Civil Remedy Notice (CRN) with the Florida Department of Financial Services. This notice gives the insurer 60 days to cure the violation. If the insurer fails to act within that window, you can proceed with litigation. This pre-suit requirement makes timing and documentation critical from the very beginning of your dispute.

Florida courts have consistently held that bad faith is not just about whether a claim was ultimately paid — it is about how the insurer conducted itself throughout the claims process. Unreasonable delays, inadequate investigations, and lowball offers can all constitute bad faith even if the insurer eventually pays something.

Common Delay Tactics Used by Florida Insurers

Insurance adjusters are trained to move slowly in ways that appear procedural but are actually strategic. Recognizing these tactics can help you respond effectively:

• Repeated requests for documentation: Insurers ask for the same documents multiple times or request information that is irrelevant to your claim, forcing you to spend weeks gathering materials that do not change the outcome.
• Scheduling and canceling inspections: Adjusters fail to show up, reschedule appointments indefinitely, or send inspectors who produce reports that drastically underestimate damage.
• Assigning multiple adjusters: Your file gets transferred between adjusters, each claiming no knowledge of prior communications and forcing you to restart explanations from scratch.
• Disputing causation without basis: Insurers claim damage was pre-existing or caused by something not covered under the policy, even when there is no reasonable evidence to support that position.
• Partial payments to forestall litigation: Insurers pay a small portion of a valid claim, hoping policyholders will accept the amount and sign a release of all future claims.
• Demanding appraisal as a delay mechanism: While the appraisal process is a legitimate dispute resolution tool, some insurers invoke it specifically to delay resolution rather than to fairly determine value.

In St. Petersburg and the broader Tampa Bay area, these tactics have become particularly common in the wake of hurricane and tropical storm damage, where claim volumes are high and insurers face financial pressure to limit payouts.

Florida's Prompt Payment Requirements

Florida law sets specific deadlines insurers must meet when handling property insurance claims. Under Florida Statute § 627.70131, insurers must acknowledge receipt of a claim within 14 days, begin investigation within that same period, and pay or deny the claim within 90 days of receiving proof of loss. When a state of emergency has been declared — common after major storms — the deadline extends to 120 days.

Failure to meet these deadlines does not automatically result in liability, but it is significant evidence in a bad faith claim. Document every communication with your insurer, including the date you submitted your claim, every letter or email you received, and every time a deadline passed without action. This paper trail becomes invaluable if you eventually pursue litigation.

Insurers who miss these deadlines may also owe you interest on the delayed payment. Florida law requires payment of interest at the rate applicable to judgments when an insurer fails to pay within the required timeframe — a penalty that incentivizes timely handling.

How to Strengthen Your Position Against a Delaying Insurer

There are concrete steps you can take to push back against insurer delay tactics and build a record that supports a bad faith claim if one becomes necessary:

• Document everything in writing: Follow up every phone call with an email summarizing what was discussed and what the insurer agreed to do. Written records are far harder to dispute than verbal representations.
• Hire a licensed public adjuster: Public adjusters work on your behalf, not the insurer's. They conduct independent damage assessments and can identify underpaid or overlooked items in your claim.
• Get independent contractor estimates: Do not rely solely on the insurer's preferred vendors. Independent estimates document the true scope of damage and create a baseline for negotiations.
• Submit a written proof of loss promptly: This triggers the statutory timeline and protects you from arguments that delays were caused by your own failure to provide documentation.
• File a complaint with the Florida Department of Financial Services: A formal complaint creates a government record and sometimes prompts insurers to reconsider their handling of your claim.
• Consult an attorney before signing anything: Insurers frequently present release agreements alongside partial payments. Signing without legal review can permanently extinguish rights to additional recovery.

When to Pursue a Bad Faith Lawsuit in St. Petersburg

A bad faith lawsuit is not appropriate for every insurance dispute, but it becomes a serious option when an insurer's conduct crosses from mere disagreement into deliberate obstruction. Signs that bad faith litigation may be warranted include: a pattern of missed deadlines without explanation, denial letters that misrepresent policy language, failure to conduct any meaningful investigation, or settlement offers so unreasonably low they suggest the insurer never intended to negotiate honestly.

Florida's bad faith statute allows successful claimants to recover damages beyond the original policy limits, including consequential damages — losses you suffered because the insurer withheld money you needed to repair your property or cover related expenses. Attorney's fees may also be recoverable, which makes pursuing these claims economically viable even when the original dispute involved a relatively modest amount.

Pinellas County courts, which handle cases filed in St. Petersburg, have seen an increase in first-party bad faith litigation in recent years. Experienced local counsel understands the procedural nuances of these cases, including how to properly time the Civil Remedy Notice and how to preserve evidence before it becomes unavailable.

Insurance companies have entire legal departments devoted to minimizing payouts. Policyholders who attempt to navigate bad faith claims alone are at a serious disadvantage. The law exists to level that playing field — but only if you know how to use it.

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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