Bad Faith Insurance Attorney in Hollywood, FL

Bad Faith Insurance Attorney in Hollywood, FL

When an insurance company fails to honor its obligations to a policyholder, the consequences can be devastating. A denied claim, an unreasonably delayed payment, or a lowball settlement offer can leave homeowners and property owners in Hollywood, Florida struggling to recover from serious losses. Florida law provides powerful remedies for policyholders who suffer at the hands of insurers acting in bad faith — but pursuing those remedies requires understanding your rights and acting strategically.

What Constitutes Bad Faith Insurance in Florida

Insurance bad faith occurs when an insurer fails to deal fairly and honestly with its policyholder. In Florida, bad faith claims are governed primarily by Florida Statute § 624.155, which establishes the legal framework for holding insurers accountable for unfair claims handling practices.

Common examples of bad faith conduct by property insurers in Hollywood include:

• Denying a valid claim without conducting a reasonable investigation
• Offering a settlement significantly below the actual value of the loss
• Unreasonably delaying payment or stringing along a claimant with repeated requests for documentation
• Misrepresenting policy provisions or coverage terms
• Failing to acknowledge or respond to a claim within a reasonable time
• Refusing to pay a claim after the insured has substantially complied with all policy requirements
• Conducting a biased or inadequate claims investigation

Florida law imposes a duty of good faith on every insurer operating in the state. That duty requires the insurer to act with the same level of consideration for the policyholder's interests as it gives to its own. When that duty is breached, policyholders have the right to pursue statutory bad faith claims in addition to breach of contract claims.

The Civil Remedy Notice Requirement

Before filing a bad faith lawsuit under § 624.155, Florida policyholders must file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services. This procedural step is critical and cannot be skipped. The CRN serves as a formal notice to the insurer, giving it 60 days to cure the alleged bad faith conduct by paying the full amount owed or otherwise remedying the violation.

If the insurer fails to cure the violation within that 60-day window, the policyholder may then proceed to file a lawsuit. The CRN must specifically identify the policy, the insurer, the claim number, and the statutory provisions allegedly violated. An improperly filed CRN can jeopardize the entire bad faith case, which is why it is essential to work with an experienced property insurance attorney in Hollywood who knows exactly how to prepare and file this document.

It is important to note that the bad faith cause of action does not mature until the underlying breach of contract claim is resolved. Typically, this means the policyholder must first establish that coverage existed and that the insurer failed to pay what was owed under the policy before the bad faith claim can proceed to trial.

Damages Available in a Florida Bad Faith Claim

One of the most significant aspects of Florida bad faith law is the scope of damages a policyholder can recover. Unlike a standard breach of contract claim — which is typically limited to the unpaid policy benefits — a successful bad faith claim can result in substantially greater compensation.

Recoverable damages in a Florida bad faith case may include:

• The full amount of the covered loss, including any amounts that exceeded policy limits if the insurer's bad faith exposed the policyholder to excess liability
• Consequential damages caused by the insurer's delay or denial, such as additional property damage resulting from an inability to make timely repairs
• Attorney's fees and court costs under Florida Statute § 627.428
• Interest on the unpaid amounts
• In egregious cases, punitive damages where the insurer's conduct was particularly willful or malicious

The availability of attorney's fees is especially significant. Under § 627.428, a policyholder who prevails against an insurer is entitled to recover reasonable attorney's fees. This provision levels the playing field between individual policyholders and well-funded insurance companies, making it economically viable to pursue even modest claims through litigation.

First-Party Property Claims and Bad Faith in Hollywood

Hollywood, Florida property owners face unique challenges when dealing with insurance companies. South Florida's exposure to hurricanes, tropical storms, flooding, and wind damage means that property claims are common — and the potential for insurer misconduct is high, particularly in the aftermath of major weather events when insurers are processing thousands of claims simultaneously.

First-party property insurance bad faith arises when your own insurer — the company you pay premiums to — acts improperly in handling your claim. This is distinct from third-party bad faith, which involves liability insurers. For Hollywood homeowners and commercial property owners, first-party bad faith most commonly surfaces in the context of:

• Homeowners insurance claims for hurricane or wind damage
• Commercial property claims after storm events
• Water damage and mold remediation claims
• Roof damage claims, which are frequently disputed in South Florida
• Claims under condominium association policies

Insurance companies often deploy adjusters who are incentivized to minimize payouts or independent experts whose reports are designed to support denial. When a carrier's adjuster dramatically undervalues your losses or the insurer cites technicalities to avoid paying, those actions can form the foundation of a bad faith claim.

Steps to Take If You Suspect Bad Faith

If you believe your insurer is handling your property claim improperly, taking deliberate steps early in the process can protect your rights and strengthen a future bad faith case.

Document everything. Maintain a written log of every communication with your insurer, including dates, times, names of representatives, and summaries of what was discussed. Preserve all written correspondence, including emails, letters, and claim denials.

Request everything in writing. Ask the insurer to confirm all coverage decisions, denial reasons, and requests for additional information in writing. Verbal explanations are difficult to rely on later.

Get an independent estimate. Hire a licensed public adjuster or a contractor experienced in insurance claim disputes to independently assess your damages. If the insurer's estimate is dramatically lower, this discrepancy is evidence of bad faith.

Do not sign releases prematurely. Be cautious about accepting partial payments or signing documents that could waive your rights to pursue the full value of your claim or a subsequent bad faith action.

Consult an attorney before the deadline runs. Florida's statute of limitations for bad faith claims is five years from the date of the CRN. However, related breach of contract claims have different deadlines, and missing any of these windows can permanently bar your recovery. An attorney can help you identify all applicable deadlines and ensure your claims are preserved.

Hollywood policyholders who have been mistreated by their insurers should not accept an inadequate settlement or give up after a denial. Florida law was specifically designed to create accountability for insurers who put profits ahead of their policyholders' legitimate claims. With the right legal representation, you can level the playing field and pursue the full compensation you are owed.

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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