Bad Faith Attorney Guide to Property Insurance in Marathon, FL

Introduction: Why Marathon, Florida Homeowners Need This Guide

Marathon, Florida is a vibrant city that stretches across several islands in the Middle Keys. Homeowners here enjoy turquoise waters, world-class fishing, and a laid-back coastal lifestyle. Yet living in paradise comes with risks: Atlantic hurricanes, tropical storms, intense summer heat, and occasional flooding can all damage a Marathon home in minutes. Because our island chain is so exposed, property insurance is not a luxury—it is a lifeline. Unfortunately, many Marathon homeowners discover that their insurer is quick to collect premiums but slow to pay legitimate claims. If you have experienced a property insurance claim denial Marathon Florida, you are not alone. This guide explains Florida law, outlines your rights, and shows you how to fight back—preferably with help from a qualified bad-faith insurance attorney.

We draw exclusively on authoritative sources, including Chapter 627 of the Florida Statutes, the Florida Department of Financial Services (DFS), the Florida Administrative Code, and Florida appellate court decisions. Our goal is to empower Marathon policyholders, clarify procedures unique to the Sunshine State, and provide local context relevant to Keys residents.

Understanding Your Property Insurance Rights in Florida

1. The Policy Is a Contract—And Florida Law Enforces It

Under Florida law, an insurance policy is a binding contract. When you pay your premium, your insurer promises to provide coverage that complies with the terms of your policy and Florida’s insurance code. Florida Statute §624.155 grants policyholders the right to sue an insurer for bad faith when it fails to settle claims fairly and promptly.

2. Statute of Limitations for Property Insurance Claims

• For hurricane and windstorm damage, Florida Statute §627.70132 requires notice of a claim within three (3) years after the storm first makes landfall in Florida. • For breach-of-contract lawsuits against an insurer (most property claim suits), Florida Statute §95.11(2)(e) provides a five-year statute of limitations from the date the carrier breached the policy.

3. The Homeowner Claims Bill of Rights

The Florida DFS must give homeowners filing a residential property claim a "Homeowner Claims Bill of Rights" (Fla. Stat. §627.7142). Key protections include:

• Right to receive acknowledgment of your claim within 14 days.

• Right to receive written confirmation of coverage decisions—full, partial, or denial—within 30 days after proof-of-loss is completed.

• Right to payment of undisputed benefits within 90 days of notice of the claim.

• Right to mediate disputes through DFS-sponsored mediation.

4. The Insurer’s Duty of Good Faith

Florida insurers must adjust claims “promptly, thoroughly, and in good faith.” An unreasonable delay, lowball valuation, or unjustified denial may constitute bad faith, giving homeowners additional remedies—including extra-contractual damages—under §624.155.

Common Reasons Property Insurance Companies Deny Claims in Florida

Understanding carrier tactics can help you challenge denials strategically.

• Water Damage Exclusions: Many policies exclude water damage caused by flooding or long-term leakage. Insurers may label storm-related water intrusion as “flood” damage to avoid paying.

• Late Notice: Carriers often argue you reported damage outside the three-year or five-year window, even if you notified them promptly.

• Pre-Existing or Wear-and-Tear Allegations: Adjusters may claim your roof damage is due to age or lack of maintenance, not a sudden covered peril.

• Misrepresentation or Fraud Accusations: If paperwork contains minor mistakes, an insurer can attempt to void the entire claim.

• Improper Documentation: Denials often cite missing photos, receipts, or contractor estimates—even though the insurer has its own duty to investigate.

• Policy Interpretations Favoring the Carrier: Ambiguous policy language should be construed in favor of the insured under Florida law, yet carriers still try to exploit gray areas.

When you receive a denial letter, review the exact policy provision cited. In many cases, the cited exclusion does not apply or is limited by other endorsements you purchased. A seasoned Florida attorney can decode the fine print.

Florida Legal Protections & Insurance Regulations

1. Florida Statutes Chapter 627 – Governing Contracts

Chapter 627 sets baseline rules for residential property insurance policies issued in Florida, including required hurricane deductibles, prompt payment deadlines, and appraisal clauses. Section 627.70131 imposes a 90-day deadline for insurers to pay or deny claims after notice, reinforcing swift resolution.

2. Civil Remedy Notice (CRN)

Before suing for bad faith, Florida homeowners must file a CRN with DFS under §624.155. The notice gives the insurer 60 days to cure the violation. If the carrier still refuses to pay, you can proceed to court and potentially recover extra-contractual damages.

3. Florida Administrative Code 69J-166.031 – Mediation Program

The DFS residential property mediation program provides a fast, low-cost alternative to litigation. Either party may request mediation after a partial or full denial. While not binding, a successful mediation often resolves disputes within 60 days.

4. Attorney Licensing Rules

Only lawyers admitted to The Florida Bar may give legal advice or represent policyholders in state courts. Out-of-state attorneys must associate with Florida counsel via pro hac vice admission, ensuring Marathon homeowners receive representation from lawyers versed in Florida insurance law.

5. Punitive Damages for Bad Faith

When an insurer’s actions are willful, wanton, or malicious, punitive damages may be awarded under §624.155(5). Courts in the Third and Fourth Districts (which include the Keys) have upheld punitive awards when carriers ignored clear evidence of covered losses.

Authoritative Resources:

Florida Homeowner Claims Bill of Rights (DFS)

§627.70131 Prompt Pay Statute

Florida Office of Insurance Regulation

Steps to Take After a Property Insurance Claim Denial in Florida

1. Request the Claim File and Denial Basis in Writing

Under Florida Administrative Code 69O-166.031, you have the right to request the entire claim file, including adjuster notes and photographs. Demand a written explanation citing policy provisions used to deny your claim.

2. Review Your Policy and Declarations Page

Locate endorsements that override exclusions. Many Marathon policies contain specific windstorm or flood add-ons, especially for homes near the Overseas Highway and Gulfside shorelines.

3. Document the Damage Thoroughly

• Take timestamped photos and videos.

• Keep receipts for emergency repairs and temporary lodging.

• Obtain at least two independent contractor estimates.

• Preserve damaged property until the insurer reinspects.

4. File a Supplemental Claim if New Damage Appears

Florida law allows supplemental claims within the statute of limitations. Do not accept a lowball initial payment if additional damage surfaces months later.

5. Engage an Experienced Adjuster or Engineer

Public adjusters licensed by the Florida Department of Financial Services can produce a detailed, homeowner-friendly damage estimate. Choose professionals familiar with Keys construction and coastal wind loads.

6. Demand Appraisal (If Your Policy Allows)

Most Florida policies include an appraisal clause for valuation disputes. Each side selects an appraiser, and a neutral umpire decides if they disagree—often faster than court.

7. File a Civil Remedy Notice and Consider Litigation

If the insurer continues to stonewall, a CRN can trigger statutory penalties. After 60 days, you may file a bad-faith lawsuit seeking contract benefits, interest, attorney fees, and potentially punitive damages.

When to Seek Legal Help in Florida

A bad faith insurance attorney levels the playing field against billion-dollar carriers. Consider hiring counsel when:

• Your claim involves extensive hurricane or flood damage exceeding $50,000.

• The insurer delays payment beyond Florida’s 90-day deadline.

• The carrier blames pre-existing conditions without credible evidence.

• You receive a partial payment far below repair estimates.

• You suspect underwriting misrepresentation or policy rescission tactics.

Florida statutes (§627.428 and §626.9373) allow courts to award reasonable attorney fees when a policyholder prevails, reducing out-of-pocket costs. Most property-damage attorneys, including those serving Marathon homeowners, work on contingency—no fee unless they recover for you.

Local Resources & Next Steps for Marathon Homeowners

1. Monroe County Building Department

Before repairing storm damage, confirm permit requirements with the county to avoid coverage issues related to code upgrades.

2. Florida Keys Mosquito Control & Standing Water

Standing water can accelerate mold growth. Document control measures to refute insurer claims of homeowner negligence.

3. Disaster Assistance

If a storm is federally declared, register with FEMA within 60 days. FEMA grants do not reduce insurance payouts but provide interim relief.

4. Mediation & Appraisal Professionals in the Keys

Look for local experts familiar with Keys building materials (concrete pilings, impact-resistant windows) when preparing for appraisal hearings.

5. Ready to Act?

Collect your documents, secure professional estimates, and consult a Florida attorney who focuses on insurance disputes. Quick action preserves evidence and strengthens your leverage.

Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Laws change, and each claim is unique. Consult a licensed Florida attorney regarding your specific situation.

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