Bad Faith Insurance Claim in Florida — Know Your Rights (2026)

Bad Faith Insurance Claims in Florida — What Every Homeowner Needs to Know

When your insurance company does not just deny your claim but acts unreasonably, dishonestly, or deliberately in doing so, that may constitute bad faith under Florida law. Bad faith insurance claims allow you to recover damages beyond your policy limits — potentially including consequential damages, emotional distress, and attorneys' fees.

Louis Law Group pursues bad faith insurance claims against Florida property insurers who cross the line from legitimate claims handling into conduct that violates their legal obligations to policyholders.

What Is Bad Faith Insurance in Florida?

Under Florida Statute 624.155, an insurer acts in bad faith when it fails to settle a claim fairly and honestly when it has an obligation to do so. Bad faith is not simply a disagreement over coverage — it is a pattern of conduct that shows the insurer prioritized its own financial interests over its duty to its policyholder.

Florida recognizes two types of bad faith:

First-Party Bad Faith

This is the most relevant type for homeowners. First-party bad faith occurs when your own insurance company — the one you pay premiums to — fails to handle your claim in good faith. Examples include wrongfully denying valid claims, unreasonably delaying payment, and ignoring evidence that supports coverage.

Third-Party Bad Faith

Third-party bad faith involves liability insurance situations where an insurer fails to settle a claim against its insured within policy limits, exposing the insured to excess liability. While less common in property insurance, it can arise in certain scenarios.

When Does an Insurance Company Act in Bad Faith?

Bad faith is determined by the totality of the insurer's conduct. Here are the most common forms of bad faith we see in Florida property insurance claims:

Wrongful Denial of a Valid Claim

Denying a claim that is clearly covered under the policy — especially when the insurer knows or should know the claim is valid — is one of the most straightforward forms of bad faith.

Unreasonable Delay in Investigation or Payment

Florida law requires insurers to acknowledge claims within 14 days and to pay or deny claims within 90 days. Excessive delays beyond these timeframes — particularly without justification — can constitute bad faith.

Inadequate Investigation

Issuing a denial without conducting a thorough, objective investigation violates the insurer's duty. This includes failing to inspect the property, ignoring evidence submitted by the policyholder, and relying solely on biased adjusters or engineers.

Lowball Offers Without Justification

Offering a settlement amount that bears no reasonable relationship to the documented damage can be bad faith. When an insurer offers $5,000 for $50,000 in documented damage, that is not a negotiation — it is bad faith.

Misrepresenting Policy Terms

Telling a policyholder that something is excluded when it is actually covered, or mischaracterizing the terms of the policy to justify a denial, is a form of bad faith.

Requiring Unnecessary Documentation

Demanding excessive, irrelevant, or repetitive documentation as a stalling tactic rather than a legitimate information need is bad faith conduct.

Threatening or Retaliatory Behavior

Threatening to cancel a policy because the homeowner filed a claim, hired an attorney, or disputed a denial is retaliatory conduct that may constitute bad faith.

How to Pursue a Bad Faith Insurance Claim in Florida

Florida has specific requirements for pursuing a bad faith claim. Here is the process:

Step 1: Establish the Underlying Claim

Before you can pursue bad faith, you generally need to establish that the insurer owed you benefits under the policy. This usually means proving your claim should have been paid — either through settlement, appraisal, or litigation.

Step 2: File a Civil Remedy Notice (CRN)

Under Florida Statute 624.155, you must file a Civil Remedy Notice with the Florida Department of Financial Services before filing a bad faith lawsuit. The CRN must:

• Identify the insurer and the specific policy
• Describe the insurer's wrongful conduct in detail
• Specify the statutory provisions the insurer violated

Step 3: Allow the 60-Day Cure Period

After you file the CRN, the insurer has 60 days to cure the violation — typically by paying the claim. If the insurer pays during this window, your bad faith claim may be extinguished. If they do not cure, you can proceed to litigation.

Step 4: File a Bad Faith Lawsuit

If the insurer fails to cure, you can file a lawsuit seeking bad faith damages. This is a separate claim from your underlying breach of contract claim and can result in significantly greater recovery.

What Damages Can You Recover in a Florida Bad Faith Claim?

Bad faith claims can yield recovery far beyond your policy limits:

• Full policy benefits — The amount the insurer should have paid on your claim
• Consequential damages — Financial losses caused by the insurer's bad faith, such as additional repair costs from delay, temporary housing expenses, lost rental income, and diminished property value
• Emotional distress damages — Compensation for the stress, anxiety, and hardship caused by the insurer's conduct
• Attorneys' fees and costs — The insurer may be required to pay your legal fees
• Punitive damages — In cases of particularly egregious conduct, the court may award punitive damages to punish the insurer and deter future misconduct (these are rare but available in extreme cases)

The Insurance Company's Playbook in Bad Faith Cases

Insurers defend bad faith claims aggressively. Here is how they typically respond:

They Argue the Denial Was Reasonable

The insurer will claim they had a legitimate basis for the denial, even if that basis was weak. They will produce their adjusters, engineers, and claims handlers to testify that the denial was justified.

They Try to Cure During the 60-Day Window

Many insurers rush to pay during the CRN cure period specifically to avoid bad faith exposure. While this gets you paid on the underlying claim, it may limit your bad faith recovery.

They Challenge the Emotional Distress Component

Insurers will argue that any emotional distress you experienced was not caused by their conduct or was not severe enough to warrant damages.

They Dispute Consequential Damages

The insurer will try to minimize the connection between their bad faith and your consequential losses. An experienced attorney anticipates these defenses and builds the record to overcome them.

How Louis Law Group Handles Bad Faith Claims

• Thorough case evaluation — We analyze the entire claims-handling history to identify every instance of bad faith conduct
• Evidence preservation — We ensure all communications, documents, and records are preserved and organized
• Strategic CRN filing — We draft and file the Civil Remedy Notice to maximize its impact, properly identifying all violations
• Damage documentation — We work with financial experts to quantify all consequential damages the bad faith caused
• Aggressive litigation — We pursue bad faith claims through discovery, depositions, and trial when necessary
• Maximum recovery focus — Our goal is to recover not just your policy benefits but all additional damages the law allows

Carriers We Have Pursued for Bad Faith

We pursue bad faith claims against all Florida property insurers when the facts warrant it, including:

• Slide Insurance
• Southern Oak Insurance
• Bankers Insurance
• Heritage Property & Casualty
• Homeowners Choice Insurance
• Citizens Property Insurance, State Farm, Allstate, Universal Property, and others

Frequently Asked Questions

How do I know if my insurer acted in bad faith?

If your insurer denied a valid claim without proper investigation, unreasonably delayed payment, ignored your evidence, offered an absurdly low settlement, or misrepresented your coverage, they may have acted in bad faith. An attorney can evaluate your specific situation.

Can I file a bad faith claim at the same time as my breach of contract claim?

Florida courts generally require that you establish the underlying breach of contract before pursuing bad faith. However, the claims can sometimes proceed in parallel, and the CRN can be filed while the underlying claim is still being litigated.

What is the statute of limitations for bad faith in Florida?

The statute of limitations for a bad faith insurance claim in Florida is generally five years. However, the timing can be complex depending on when the bad faith conduct occurred and when the underlying claim was resolved. Consult an attorney to ensure you do not miss any deadlines.

Is it worth pursuing a bad faith claim?

If your insurer's conduct was egregious and caused you real harm beyond the unpaid policy benefits, a bad faith claim can significantly increase your total recovery. The CRN process also creates powerful leverage — many insurers pay the underlying claim just to avoid bad faith exposure.

Hold Your Insurer Accountable for Bad Faith

Insurance companies that act in bad faith count on homeowners not knowing their rights or not having the resources to fight back. Louis Law Group exists to change that equation.

Call (833) 657-4812 for a free bad faith claim evaluation or submit your case for review.