Bad Faith Insurance Attorney Guide: Property Insurance in Miami, Florida

Introduction: Why Miami Homeowners Need This Guide

No city in Florida feels the sting of property damage quite like Miami. From late-summer hurricanes barreling through Biscayne Bay to torrential afternoon thunderstorms, owning a home in Miami-Dade County means making friends with your insurance policy. Yet when disaster strikes, many policyholders find themselves fighting a new storm — a property insurance claim denial. This comprehensive guide is written for Miami homeowners who want to understand their rights, the tactics insurers use, and how a bad faith insurance attorney can help level the playing field. Using only authoritative Florida sources, we outline the protections baked into Florida insurance law and explain every step you can take after a denial.

Because property values in Miami often exceed state averages, the financial consequences of a denied claim can be devastating. That is why Florida lawmakers, regulators, and the courts have enacted specific rules governing claim deadlines, insurer conduct, and bad-faith penalties. If your carrier tries to low-ball, delay, or refuse legitimate payment, you are not powerless. Armed with up-to-date statutes, administrative codes, and practical strategies, you can push back — and even recover extra-contractual damages when an insurer acts in bad faith.

Understanding Your Property Insurance Rights in Florida

1. The Contractual Right to Full Indemnity

Your homeowners policy is a contract governed by Florida law. Under that contract, the insurer owes you the full cost of restoring, repairing, or replacing covered property, minus any deductible. Section 627.7011, Florida Statutes, prohibits insurers from withholding depreciation when a policy provides replacement cost coverage. Miami homeowners should read the “Loss Settlement” provision of their declarations carefully; if replacement cost coverage is listed, you are entitled to the cost of putting your home back to its pre-loss condition.

2. Statutory Deadlines That Protect You

• Notice of Claim – Fla. Stat. §627.70132 (2023) gives policyholders one year from the date of loss to report a new claim and 18 months for supplemental claims. Missing this deadline can bar recovery, so document when you first spot damage.

• Limitations Period to Sue – Fla. Stat. §95.11(2)(e) allows five years to file a lawsuit for breach of a property insurance contract in Florida courts.

• Insurer Response Time – Fla. Stat. §627.70131 requires carriers to acknowledge a claim within 7 days and pay or deny within 60 days, unless the failure is beyond their control.

3. Good-Faith Claims Handling

Section 624.155 creates a first-party bad-faith cause of action if an insurer fails to settle a claim when it could and should have done so had it acted fairly and honestly toward its insured. Before filing suit, the statute requires a Civil Remedy Notice (CRN) filed with the Florida Department of Financial Services (DFS) and a 60-day cure period.

4. The Right to Independent Representation

You may hire a public adjuster, contractor, or Florida attorney at any stage. Under Fla. Stat. §626.854(11), public adjuster fees are capped at 20% of recovered proceeds (10% for hurricane claims filed within the first year). Attorneys’ fees, by contrast, are negotiable but must be reasonable under Rule 4-1.5 of the Rules Regulating The Florida Bar.

Common Reasons Property Insurance Companies Deny Claims in Florida

1. Alleged Late Notice

Insurers frequently deny claims by asserting the policyholder waited too long to report the loss. However, courts such as American Integrity v. Estrada, 276 So.3d 905 (Fla. 3d DCA 2019) have held that an insurer must prove it was prejudiced by the delay. Do not simply accept a denial based on timing without legal review.

2. Misapplication of Exclusions

Typical exclusions invoked in South Florida include “wear and tear,” “pre-existing damage,” or “earth movement.” Under Florida law, once you meet your burden of showing a covered peril occurred (e.g., windstorm), the insurer bears the burden of proving an exclusion applies.

3. Underpaid Scope of Repairs

Some carriers acknowledge coverage but drastically undervalue roof replacement, stucco repair, or interior build-back. Pay attention to the insurer’s line-item estimate. If it omits code-required upgrades mandated by the Miami-Dade Building Code, you may have grounds to dispute.

4. Allegations of Fraud or Misrepresentation

Insurers may rescind or deny claims alleging material misstatement. Yet Fla. Stat. §627.409 requires the misstatement to be material and have misled the insurer. Innocent mistakes generally are not grounds for total forfeiture.

5. Claim Handling Delays That Become Denials

In some instances, a claim languishes without payment. Under 69O-166.020(1) of the Florida Administrative Code, any failure to acknowledge or act promptly upon communications regarding claims is an unfair claims practice.

Florida Legal Protections & Insurance Regulations

1. The Florida Insurance Code

The core consumer protections for Miami homeowners reside in Chapters 624, 626, 627, and 95 of the Florida Statutes. Together, these laws spell out policyholder rights, insurer duties, and litigation remedies. For quick reference, see the full text of §95.11 at the Florida Senate website.

2. Department of Financial Services (DFS) Oversight

The Florida DFS regulates insurers and investigates consumer complaints. Through its Consumer Services Division, Miami residents can file a mediation request or complaint at no charge. Visit the DFS Property Insurance Help page at Florida DFS Property Insurance Resources for forms and contact numbers.

3. Statutory Bad Faith Remedy

To pursue bad-faith damages, policyholders must serve a CRN via the DFS portal. If the insurer fails to cure within 60 days, the policyholder may sue for the full value of the claim plus consequential damages and attorneys’ fees. Miami-Dade Circuit Court has awarded millions in such cases when carriers ignored clear evidence of covered loss.

4. Prompt Payment Requirements

Under Fla. Stat. §627.70131(7)(a), once the insurer agrees to coverage, payment must be issued within 90 days or the company owes interest. This statute is a crucial weapon when carriers stall.

5. Licensing Rules for Attorneys

Only lawyers licensed by The Florida Bar may give legal advice on Florida insurance matters. Out-of-state counsel must associate with a Florida attorney to appear in court via pro hac vice admission under Fla. R. Jud. Admin. 2.510.

Steps to Take After a Property Insurance Claim Denial in Florida

Step 1: Read the Denial Letter in Full

Under 69O-166.024, insurers must give written reasons for denial. Locate the policy language cited and note every date mentioned.

Step 2: Gather Evidence

• Photos or videos of the damage immediately after the event

• Meteorological data (NOAA storm reports) for the date of loss

• Invoices, permits, or receipts for emergency repairs

• Independent estimates from licensed Miami-Dade contractors

Step 3: File a Reconsideration or Supplemental Claim

Florida law permits supplemental claims up to 18 months after the loss (Fla. Stat. §627.70132). Submit additional evidence and a sworn proof of loss.

Step 4: Request DFS Mediation

DFS offers free, non-binding mediation for residential property disputes under Fla. Stat. §627.7015. Many Miami homeowners achieve partial or full settlements here.

Step 5: Draft and File a Civil Remedy Notice

If mediation fails, consult a Florida attorney. Filing a CRN is a prerequisite to a bad-faith action under §624.155.

Step 6: Consider a Lawsuit or Appraisal

Some policies include an appraisal clause. However, bad-faith damages are only recoverable through civil litigation in Florida state or federal court. Suit must be filed within five years of breach.

When to Seek Legal Help in Florida

While you can handle some claim disputes alone, certain red flags suggest it is time to hire a bad faith insurance attorney:

• The insurer blames pre-existing or wear-and-tear damage despite hurricane impact photos.

• Your claim has been open more than 90 days without payment.

• The carrier’s engineer report contradicts on-site contractor findings.

• You receive a reservation of rights letter alleging fraud.

• Your supplemental claim is denied as “untimely” even though you are within 18 months.

An experienced lawyer can depose adjusters, compel disclosure of claim files, and recover statutory attorney fees when the insurer loses. Miami courts are familiar with these cases, and many settle shortly after suit is filed.

Local Resources & Next Steps

• Miami-Dade Consumer Mediation Center – Provides guidance on filing complaints against insurers.

• Eleventh Judicial Circuit Complex Business Litigation Division – Handles high-value property insurance suits in Miami.

• National Hurricane Center (NHC) Miami – Obtain certified storm data to prove wind speeds at the time of loss.

• South Florida Building Code Compliance Office – Verify local code upgrades required for roof, impact windows, and shutters.

• The Florida Bar Lawyer Referral Service – Connects homeowners with vetted florida attorney specialists in insurance disputes.

Document every communication, meet statutory deadlines, and don’t hesitate to escalate. Remember: even a denied claim can be reversed when the facts and the law are on your side.

Legal Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Laws change, and every case is unique. Consult a licensed Florida attorney to obtain advice 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.