Bad Faith Insurance Claim Florida Laws and Procedures

In Florida, bad faith insurance claims can lead to serious consequences for insurers. Florida law requires insurers to act in good faith when handling claims, but some insurers may not comply.

The Florida Department of Financial Services can investigate and take action against insurers that engage in bad faith practices.

Florida law also allows policyholders to sue insurers for bad faith claims handling.

A bad faith insurance claim occurs when an insurance company unreasonably fails to fulfill its obligations under the insurance policy. This can include failing to promptly settle claims once liability is clear, providing a valid reason for denying claims, or adequately investigating claims.

If an insurance company prioritizes its own interest over the policyholder's, it may be liable for a bad faith claim. In Florida, there are two primary types of bad faith claims: first-party and third-party.

Here are the key differences between first-party and third-party bad faith claims:

In both cases, the insurance company has a responsibility to act in the best interest of the policyholder. If they fail to do so, the policyholder or injury victim may pursue a bad faith claim against the insurer.

Filing a bad faith insurance claim in Florida requires a strategic approach.

You'll need to submit a written notice to the insurance company within a certain timeframe, which is 60 days.

This notice should be done as soon as possible, ideally with the help of an experienced Florida bad faith insurance attorney.

Working with a skilled attorney can help protect your legal rights and take the stress off your shoulders.

You'll need to be very careful when following your claim and follow all protocols to avoid having the fault turned on you.

Keep thorough records of every step along the way, including written communication with the insurance company.

This will ensure you have proof of your interactions and can support your claim.

Before submitting your claim or reaching out to your insurance company, speak to a lawyer to ensure you're following protocol and have all the important documentation.

In a bad faith insurance case in Florida, you may be able to recover the value of the initial claim. You can also seek compensation for court costs and other losses resulting from the insurer's bad faith actions. Emotional distress is another type of damage you can pursue.

The types of insurance policies prone to bad faith claims are numerous. Homeowner's insurance, for example, is a common area of dispute, particularly when it comes to dwelling coverage. A fire can devastate a property, but the payout may be significantly less than expected.

Some common types of bad faith claims include:

In a bad faith case, you can recover damages that cover the value of the initial claim. This is a key factor to consider when determining the extent of your losses.

The value of the initial claim is a critical component of bad faith cases, and it's essential to have a clear understanding of what this entails. You can recover the full value of your claim, minus any deductible or other out-of-pocket expenses.

You may also be able to recover court costs and other losses resulting from the insurer's bad faith actions. These costs can add up quickly, and it's essential to have a solid understanding of what you're entitled to.

Emotional distress is another type of damage that may be recoverable in a bad faith case. This can include things like anxiety, stress, and other mental health-related issues.

Here are some examples of damages that may be recoverable in a bad faith case:

There are two main types of bad faith claims: first-party and third-party. First-party bad faith claims arise when an insurance company unreasonably refuses to pay a claim or to properly investigate a claim.

First-party bad faith claims typically stem from certain insurance policies, including health insurance policies, fire insurance policies, and flood or tornado insurance policies.

A first-party bad faith claim can be brought under Florida Statutes § 624.155(1), which stipulates that you can bring a bad faith claim when the insurer doesn’t settle a claim in good faith when it could have because they were not acting with fairness or honesty and did not consider your best interests.

Third-party bad faith claims, on the other hand, occur when an insurance company unreasonably fails to defend, indemnify or settle a claim within policy limits or to investigate a claim for a different party.

Some common types of third-party policies include professional liability, commercial liability, and homeowner’s liability.

Here are some examples of third-party bad faith claims:

It's worth noting that third-party claimants have the latitude to pursue bad faith claims either under common or statutory law, though not simultaneously.

Property insurance is crucial to protect your home and belongings from damages.

Dwelling coverage is a must-have, paying for repairs or rebuilding of your home, including electrical wiring, plumbing, and heating and air conditioning, if damaged by a covered cause of loss.

It's essential to buy enough dwelling coverage to cover the cost to rebuild, as a general rule of thumb.

Personal property coverage reimburses you for damaged or destroyed personal items in your home, such as furniture, clothes, jewelry, sporting goods, and electronics.

Loss of use coverage pays for your additional housing and living expenses if you must move out of your home temporarily while it's being restored.

Florida's legislation and statutes surrounding bad faith insurance claims are outlined in the Unfair Insurance Trade Practices Act. This act identifies specific actions that can be considered bad faith, including alterations without consent and misrepresentation.

A recent change to the law, codified as Florida Statute § 624.155 (4)(b), emphasizes the importance of good faith in the claims process. Insurers are now required to act with utmost good faith, and a simple oversight or negligence no longer constitutes bad faith.

The statute defines bad faith as when an insurer fails to attempt in good faith to settle claims when it could and should have done so, or when it makes claims payments without a statement setting forth the coverage under which payments are being made.

The following actions can be considered unfair claim settlement practices under Florida's Unfair Insurance Trade Practices Act:

A recent change in Florida's bad faith legislation has shifted the landscape for insurance claims. HB 837, passed in March 2023, now requires all parties to act with utmost good faith during the claims process.

The new law, codified as Florida Statute § 624.155 (4)(b), has eliminated the distinct cause of action for insurer bad faith. This means that a simple oversight or negligence no longer constitutes bad faith against an insurer.

The law also changes the way damages are determined, allowing bad faith actions (or absence thereof) to be weighed in the process. This could potentially impact the outcome of insurance claims.

Florida Statute 624.155 defines bad faith as when an insurer fails to act fairly and honestly toward its insured and with due regard for their interests. This includes failing to promptly settle claims when the obligation to settle has become reasonably clear.

Florida's Statute 624 plays a crucial role in defining bad faith insurance practices. Under this statute, an insurer may be deemed to be acting in bad faith if it commits any of the following acts.

Florida Statute 624.155 specifically states that bad faith is when the insurer does not attempt in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.

Some of the key actions that can be considered bad faith under this statute include attempting to settle claims on the basis of an altered application, making material misrepresentations to the insured, and failing to promptly settle claims when the obligation to do so has become reasonably clear.

Here are some examples of bad faith practices under Florida Statute 624:

These actions can have serious consequences for insurers, including the potential for bad faith claims to be filed against them.

Florida law requires insurance companies to investigate claims promptly. Florida Statute 627.40131(3)(a) states that an insurer must begin investigating a claim within 14 days after receiving proof-of-loss statements.

This means that insurance companies have a deadline to start looking into your claim. If they don't meet this deadline, it could be a sign of bad faith.

If you're dealing with an insurance company that's not investigating your claim promptly, it's essential to keep a record of all correspondence and interactions. This evidence can be critical in building a bad faith claim.

In Florida, establishing a bad faith claim involves showing that the insurance company unreasonably failed or refused to honor a claim. This might involve demonstrating that they didn't conduct a proper investigation or denied your claim without a reasonable explanation.

A competent attorney becomes indispensable when faced with a potential bad faith claim, prioritizing the client's interest and ensuring they're treated fairly under their contract.

The attorney can help navigate the complexities of insurance bad faith claims, guiding you in gathering evidence and developing a strong case.

Their legal team can assess your situation, investigate the insurance company's actions, and determine if you have a valid bad faith claim.

The attorney can also represent you in any legal proceedings or negotiations with the insurance company, ensuring your rights are adequately protected.

Companies must be given a second chance to resolve issues before a bad faith claim is filed. They are given 60 days to cure the alleged violation.

Before filing a bad faith claim, the policyholder must file a notice with both the insurance company and the Department of Financial Services. This is a crucial step to ensure that the insurance company has the opportunity to correct their mistake.

If the insurance company settles the claim to the policyholder's satisfaction within 60 days, the bad faith claim is no longer an issue. However, if they fail to do so, the next step is to file a complaint in court.

Don't assume that just because the insurance company denied your claim, they acted in bad faith. They must be given the opportunity to correct their mistake before a bad faith claim can be filed.

An attorney can play a crucial role in helping you navigate the complexities of insurance bad faith claims.

Their services become indispensable when faced with a potential bad faith claim.

A competent attorney can guide you in gathering evidence, developing a strong case, and ensuring your claim is timely and correctly filed.

Their legal team can assess your situation, investigate the insurance company's actions, and determine if you have a valid bad faith claim.

A knowledgeable Florida bad faith insurance attorney can help you learn more about your options for pursuing compensation.

They can represent you in any legal proceedings or negotiations with the insurance company, ensuring your rights are adequately protected.

A Florida bad faith insurance lawyer can help you prove bad faith, which might result in additional penalties, typically between 50% to 300% of the money you're owed, plus attorney's fees.

Without proper evidence, you won't be able to prove bad faith.

A lawyer with experience representing both plaintiffs and insurance companies can provide a unique perspective in pursuing bad faith claims.

Jeremiah Johns, a former insurance defense attorney, now represents plaintiffs in bad faith insurance, catastrophic injury cases, and commercial disputes.

He has a unique perspective from his experience representing some of the nation's largest insurance companies.

If you think your insurance company has acted in bad faith, you should contact a lawyer as soon as possible.

A Miami insurance claim lawyer can assist you with your bad faith claim and represent you in negotiations with the insurance company.

You can contact the Miami insurance claim lawyers at Ver Ploeg & Marino by calling (305) 577-3996 or via their contact page for a consultation.