Bad Faith Insurance Attorney Orlando FL

Bad Faith Insurance Attorney Orlando FL

When an insurance company fails to honor its obligations to a policyholder, the conduct may rise to the level of bad faith—a serious legal violation that entitles Florida property owners to significant additional compensation. Understanding bad faith insurance law is critical for Orlando homeowners and business owners who believe their insurer has treated them unfairly after a property damage claim.

What Is Bad Faith Insurance in Florida?

Florida law imposes a duty of good faith on all insurance companies doing business in the state. Under Florida Statute § 624.155, an insurer acts in bad faith when it fails to attempt in good faith to settle a claim when, under the circumstances, it could and should have done so. The statute also covers situations where insurers make claims handling decisions that prioritize their own financial interests over those of their policyholders.

Bad faith claims fall into two broad categories in Florida:

• First-party bad faith: Your own insurer fails to fairly handle your property damage claim under your homeowners or commercial property policy.
• Third-party bad faith: A liability insurer fails to settle a claim against its insured within policy limits, exposing the insured to excess judgment.

For Orlando property owners dealing with hurricane damage, water intrusion, fire, or other covered losses, first-party bad faith is the more common concern. Florida courts have consistently held that insurers must investigate claims promptly, communicate openly with policyholders, and make fair settlement offers based on the actual value of the loss.

Common Bad Faith Tactics by Insurance Companies

Recognizing bad faith conduct is the first step toward protecting your rights. Orlando property insurers have been known to employ tactics that, while sometimes subtle, can constitute actionable bad faith under Florida law.

• Unreasonable claim delays: Florida law requires insurers to acknowledge claims within 14 days and make coverage decisions within 90 days. Repeated extensions or silence without justification may signal bad faith.
• Lowball settlement offers: Offering substantially less than the documented value of your loss without a legitimate basis is a hallmark of bad faith conduct.
• Improper claim denials: Denying covered claims based on policy exclusions that do not actually apply, or misrepresenting policy language, constitutes bad faith.
• Failure to investigate: Sending an adjuster who spends minimal time on site or ignoring contractor estimates without explanation suggests the insurer is not fulfilling its duty.
• Misrepresenting facts: Providing inaccurate information about coverage, deadlines, or claim status to discourage policyholders from pursuing their full entitlement.
• Stonewalling after suit: Refusing to engage in good-faith settlement negotiations even after litigation begins can extend bad faith exposure significantly.

The Civil Remedy Notice: A Critical Step in Florida

Before filing a bad faith lawsuit in Florida, policyholders must serve the insurer with a Civil Remedy Notice (CRN) through the Florida Department of Financial Services. This is a mandatory prerequisite under § 624.155 and is not optional—skipping it will result in dismissal of your bad faith claim.

The CRN gives the insurer 60 days to cure the alleged bad faith conduct by paying the full amount owed under the policy. If the insurer fails to cure within that window, you may proceed with a bad faith lawsuit seeking damages beyond the policy limits, including consequential damages, attorney's fees, and in some cases punitive damages.

Serving a proper CRN requires detailed knowledge of both the underlying claim and the specific statutory violations at issue. An experienced Orlando property insurance attorney can ensure the notice is correctly drafted and served in a way that preserves your right to proceed. Errors in the CRN can be exploited by insurers to defeat an otherwise valid bad faith case.

Damages Available in a Florida Bad Faith Claim

One of the most powerful aspects of a bad faith claim is the scope of available damages. Unlike a standard breach of contract action—where recovery is generally limited to the policy benefits owed—a successful bad faith claim can yield:

• The full value of your underlying claim, including amounts the insurer previously refused to pay
• Consequential damages caused by the insurer's delay or denial, such as additional repair costs, temporary housing, or lost business income
• Attorney's fees and court costs under Florida Statute § 627.428, which provides a fee-shifting mechanism against insurers
• Punitive damages where the insurer's conduct was particularly egregious, reckless, or fraudulent

The fee-shifting provision under § 627.428 is especially significant. It means that when a policyholder prevails against an insurer, the insurer must pay the policyholder's reasonable attorney's fees. This provision levels the playing field and makes it economically feasible for property owners to fight back against well-funded insurance companies.

What Orlando Property Owners Should Do After a Bad Faith Denial

If you suspect your insurer is handling your claim in bad faith, act decisively. Insurance companies document every communication, and policyholders must do the same.

• Document everything: Save all correspondence, denial letters, adjuster reports, and emails. Note dates of all phone calls and what was discussed.
• Get an independent appraisal: Florida homeowners policies typically include an appraisal clause. Invoking appraisal can establish the true value of your loss and undercut the insurer's low offer.
• Request your complete claim file: You are entitled to obtain the insurer's internal claim notes and adjuster reports through a public records request or discovery. These documents often reveal bad faith conduct directly.
• Meet all deadlines: Florida's property insurance statutes impose strict notice and reporting requirements on policyholders. Missing a deadline can jeopardize your claim regardless of the insurer's conduct.
• Consult a property insurance attorney promptly: Bad faith litigation is complex, and the window for filing suit is governed by Florida's statute of limitations. Waiting too long can forfeit your rights entirely.

Orlando property owners facing storm damage disputes, water damage denials, or underpaid claims should not assume that the insurer's final offer is the only option available. Florida law provides robust protections for policyholders, and an experienced attorney can evaluate whether bad faith exposure exists in your specific case.

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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