Bad Faith Attorney Guide: Miami, Florida Property Insurance

Introduction: Why Miami Homeowners Need a Focused Guide

In Miami, Florida, coastal living offers ocean breezes, vibrant culture, and—unfortunately—a heightened risk of property damage from hurricanes, tropical storms, and year-round humidity. When disaster strikes, Miami homeowners often rely on their insurers to deliver prompt, fair payments so repairs can begin without delay. Yet too many policyholders run into an all-too-familiar roadblock: property insurance claim denial miami florida. Whether the loss is from Hurricane Ian’s outer bands, a plumbing leak in Little Havana, or a roof collapse in Coconut Grove, denials can feel personal and financially devastating.

This comprehensive guide leans in favor of policyholders. Using only authoritative Florida sources, it explains how state statutes, Department of Financial Services (DFS) regulations, and court decisions protect you—and how to assert those protections if your carrier acts in bad faith. By the time you finish, you will know your legal rights, possible insurer defenses, practical next steps, and when a seasoned florida attorney can make the difference between lingering frustration and a fair settlement.

Understanding Your Property Insurance Rights in Florida

The Florida Homeowner Claims Bill of Rights

Enacted in 2014 and codified at § 627.7142, Florida Statutes, the Homeowner Claims Bill of Rights requires insurers to provide policyholders a plain-language summary of critical protections within 14 days after receiving an initial claim. Key highlights include:

• Written acknowledgment of your claim within 14 days (§ 627.70131(1)).

• A decision—payment of undisputed amount or denial—within 90 days (§ 627.70131(7)).

• The right to free mediation through the DFS for claims under residential policies.

• Detailed explanation if the insurer requires additional information.

Time Limits to File and Sue

Florida imposes two critical clocks:

• Notice of Loss – Under § 627.70132, an initial residential property claim must be reported within two (2) years from the date of loss. Supplemental or reopened claims have three (3) years.

• Statute of Limitations to Sue – If your claim is denied or underpaid, you generally have five (5) years to file a breach-of-contract lawsuit under § 95.11(2)(e). In most cases, the clock starts on the date of denial, not the date of the storm. Always verify with a licensed attorney because unique circumstances—such as surplus lines policies—can alter the timeline.

Bad Faith Remedies

Florida’s bad-faith statute (§ 624.155) allows policyholders to pursue extra-contractual damages when an insurer fails to settle claims in good faith. Before suing, you must file a Civil Remedy Notice (CRN) with the DFS and give the carrier 60 days to cure. The Florida Supreme Court underscored this requirement in Talat Enterprises, Inc. v. Aetna Casualty & Surety Co., 753 So. 2d 1278 (Fla. 2000).

Other Rights Worth Remembering

Right to Counsel of Choice – You can hire any attorney licensed by The Florida Bar, and many property lawyers work on contingency.

• Right to Prompt Duplicate Policy – Request a certified copy under § 627.4137.

• Right to Interest – Insurers who fail to pay undisputed amounts within 90 days owe statutory interest.

Common Reasons Property Insurance Companies Deny Claims in Florida

Insurers cite an array of justifications for denial. Some are legitimate; others hide behind boilerplate language or misinterpret policy exclusions. Understanding the common reasons equips miami homeowners to push back.

1. Late Notice or Failure to Mitigate

If you wait months to report a roof leak, the carrier may assert that the delay prevented a fair investigation. Florida courts, however, require insurers to show prejudice from late reporting. Immediate mitigation—such as tarping—limits this argument.

2. Wear, Tear, or Prior Damage

Many roofs in Miami’s historic Coral Gables district are barrel-tile and 20+ years old. Carriers often classify hurricane-wind uplift as “pre-existing” deterioration. Comparative photos, drone imagery, and engineering reports can rebut this.

3. Policy Exclusions (Flood vs. Wind)

Standard policies exclude flood, yet storm surge can be indistinguishable from wind-driven water. Under Florida’s Valued Policy Law (§ 627.702), if a covered peril (wind) totals the property, the insurer owes full limits even when another excluded peril also contributed. Do not accept a blanket “flood” denial without a causation analysis.

4. Alleged Material Misrepresentation

Applications that omit prior claims, outdated electrical panels, or polybutylene plumbing may trigger rescission. Florida requires the insurer to prove intentional or material misrepresentation under § 627.409, and courts scrutinize vague allegations.

5. Underinsured or Policy Limit Exhaustion

Sometimes the carrier concedes coverage but insists that costs exceed limits. With Miami construction inflation topping national averages, professional estimating software (Xactimate) and contractor bids often show otherwise.

Florida Legal Protections & Insurance Regulations

Claim Handling Deadlines

• 14 Day Acknowledgment – § 627.70131(1).

• 30 Day Proof-of-Loss Response – Insurer must begin investigation within this window.

• 90 Day Decision – Pay or deny or else owe interest (§ 627.70131(7)).

DFS Mediation & Neutral Evaluation

The Florida Department of Financial Services offers free mediation for disputed residential claims and neutral evaluation for sinkhole claims. Requests are filed online, and the insurer must pay the mediator’s fee. More information is available on the Florida Department of Financial Services Homeowners Insurance page.

Attorney Fee Shifting

Under § 627.428 (for admitted carriers) and § 626.9373 (for surplus lines), a policyholder who wins any amount at trial can recover reasonable attorney’s fees. This levels the playing field and encourages early settlement.

Regulation of Assignment of Benefits (AOB)

Recent reforms (2019-2023) in §§ 627.7152 and 627.7153 restrict contractors from inflating invoices through AOBs. While aimed at fraud, these laws also protect homeowners from surprise liens.

Licensing Rules for Florida Attorneys

Only lawyers admitted to The Florida Bar may provide legal advice on Florida insurance matters. Out-of-state counsel must seek pro hac vice admission and work with local counsel, per Rules Regulating The Florida Bar 1-3.12.

Steps to Take After a Property Insurance Claim Denial in Florida

1. Read the Denial Letter Carefully

Compare cited policy language with the actual policy. Highlight each exclusion, endorsement, or condition the carrier references.

2. Gather Evidence

• Photos/video from immediately after the loss

• Repair receipts, invoices, and inspection reports

• Correspondence with adjusters

• Public adjuster or engineer reports, if any

3. Request a Certified Copy of the Policy

Send a written request under § 627.4137. Insurers must provide within 30 days.

4. Consider DFS Mediation

File online with the DFS. Mediation typically occurs at a neutral Miami-Dade site or via video. Statistics show more than 50% of participants reach partial or full settlement.

5. File a Civil Remedy Notice (If Appropriate)

If you suspect bad faith, submit a CRN via the DFS portal. The form prompts for specific statutory violations (e.g., § 624.155(1)(b)(1) – not attempting good-faith settlement). The insurer then has 60 days to cure by paying the claim plus interest.

6. Preserve the Statute of Limitations

Mark your calendar for the two-year notice deadline under § 627.70132 and five-year lawsuit deadline under § 95.11(2)(e). Do not rely on ongoing talks to toll (pause) either period without written agreement.

7. Document Ongoing Damages

Mold grows quickly in Miami humidity. Keep daily photos and moisture-meter readings to link new damage to the original covered peril.

When to Seek Legal Help in Florida

While small disputes may settle in DFS mediation, certain red flags signal the need for a seasoned florida attorney:

• Denial relies on complex engineering or causation arguments.

• Carrier accuses you of fraud or misrepresentation.

• High-dollar losses (roof replacement, structural repairs) near or above policy limits.

• Significant delay—no payment within 90 days.

• Repeated lowball offers despite compelling estimates.

Most Miami bad-faith attorneys offer free consultations and work on contingency—no fee unless you recover. Retaining counsel can also stop aggressive insurer communications; once a lawyer appears, carriers must direct contact through counsel under Rule 4-4.2 of The Florida Bar.

Local Resources & Next Steps

Florida Department of Financial Services – Miami Service Office

1350 NW 12th Avenue, Suite 286, Miami, FL 33136 Phone: 305-470-5080 Open Monday–Friday, 8 a.m.–5 p.m.

Miami-Dade County Building Department

Proof of permitting and code compliance often bolsters claims. Obtain records online or in person at 11805 SW 26th Street.

The Florida Bar Lawyer Referral Service

Call 800-342-8011 or visit Florida Bar Consumer Information to locate a qualified property insurance lawyer in Miami.

Public Adjusters

Licensed under Chapter 626, public adjusters can evaluate damages and negotiate on your behalf. Verify licensure at the DFS website.

Community Organizations

• Legal Services of Greater Miami – Limited free assistance for low-income homeowners.

• Rebuilding Together Miami-Dade – Post-disaster repairs for vulnerable residents.

Legal Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Laws change, and each case is unique. Consult a licensed Florida attorney before acting on any information herein.

If your property insurance claim was denied, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review.