Great Lakes Insurance SE Bad Faith Claims in Florida

Great Lakes Insurance SE, a German-based surplus lines insurer operating widely across Florida, has become a significant player in the homeowners insurance market — particularly as major domestic carriers have pulled back from the state. While the company fills a real coverage gap, Florida policyholders are increasingly filing complaints about claim denials, severe underpayments, and unreasonable delays that may cross the line into insurance bad faith. If Great Lakes has denied or undervalued your property damage claim, Florida law gives you powerful tools to fight back.

How Great Lakes Insurance SE Operates in Florida

Great Lakes Insurance SE writes policies through the surplus lines market, which means it is not regulated by the Florida Office of Insurance Regulation (OIR) in the same way admitted carriers are. Surplus lines insurers are not required to file their rates or forms for state approval, which gives them more flexibility — but also less direct oversight. The company underwrites through licensed Florida surplus lines agents and is backed by Munich Re, giving it significant financial resources.

This structure matters when you have a dispute. Because Great Lakes is a non-admitted carrier, some standard Florida insurance statutes apply differently. However, Florida's bad faith laws still apply to surplus lines insurers, and policyholders retain meaningful legal rights when the company acts unreasonably in handling claims.

Common Ways Great Lakes Insurance SE Denies or Underpays Claims

Homeowners across Florida have reported consistent patterns in how Great Lakes handles contested property damage claims. Recognizing these tactics is the first step toward protecting your rights:

• Roof damage denials citing "wear and tear": After hurricanes and severe storms, the company frequently attributes damage to pre-existing deterioration rather than the covered weather event, even when the damage clearly worsened or was caused by the storm.
• Engineer reports that contradict physical evidence: Great Lakes has been known to commission engineering reports from vendors whose findings consistently favor the insurer, concluding that damage is structural or maintenance-related rather than storm-caused.
• Scope underestimates: Field adjusters assign replacement costs well below actual contractor quotes, leaving homeowners with settlements that do not cover full repair costs.
• Late or incomplete payments: The company delays issuing payments, requests repetitive documentation, or issues partial payments without explanation, stringing out the claims process.
• Policy exclusion misapplication: Great Lakes policies often contain broad exclusions, and adjusters sometimes apply these exclusions to losses they were never intended to cover.

Florida Bad Faith Law and Your Rights as a Policyholder

Florida Statute Section 624.155 is the cornerstone of insurance bad faith litigation in the state. It allows policyholders to bring a civil action against an insurer that has acted in bad faith in settling claims. Before filing a bad faith lawsuit, Florida law requires you to submit a Civil Remedy Notice (CRN) to the Florida Department of Financial Services and to the insurer. The insurer then has 60 days to cure the alleged violation by paying the full amount owed under the policy.

This notice requirement is a critical procedural step — missing it can bar a bad faith claim entirely. An experienced attorney will ensure the CRN is properly drafted and served, identifying the specific statutory violations and the damages sought. If Great Lakes does not cure the violation within the 60-day window, you may proceed with a bad faith lawsuit seeking not only the original policy benefits but also consequential damages, attorney's fees, and potentially punitive damages if the conduct was particularly egregious.

Additionally, Florida Statute Section 627.428 entitles policyholders to recover attorney's fees when they prevail in a lawsuit against an insurer. This fee-shifting provision is a significant deterrent against unreasonable claim handling and makes it financially feasible for homeowners to pursue litigation even when the claim amount is modest.

The Appraisal Process as an Alternative Resolution Path

Most Great Lakes Insurance SE policies contain an appraisal clause that provides an alternative dispute resolution mechanism when the parties disagree on the amount of loss. Under this process, each side appoints its own appraiser, and the two appraisers select an impartial umpire. The appraisal panel then determines the value of the loss, and an award signed by any two of the three members is binding.

Appraisal can be a faster and less expensive path to recovery than full litigation, but it has important limitations. It resolves only the amount of the loss, not coverage disputes — if Great Lakes is denying coverage entirely rather than just underpaying, appraisal may not resolve the core issue. An attorney can analyze whether appraisal is the right strategy for your specific situation or whether litigation is necessary to address a wrongful denial.

It is also worth noting that invoking appraisal does not waive your right to later pursue a bad faith claim. If the appraisal award significantly exceeds what Great Lakes offered, that gap can serve as evidence in a subsequent bad faith action.

Steps to Take After a Great Lakes Claim Denial or Underpayment

Acting promptly and methodically after a disputed claim decision improves your legal position significantly. The following steps are essential:

• Obtain the full claim file: Under Florida law, you are entitled to a complete copy of your claim file, including adjuster notes, inspection reports, engineering findings, and all correspondence. Request this in writing immediately.
• Document all damage thoroughly: Photograph and video the damage before any repairs, and obtain independent contractor estimates from licensed Florida contractors. These figures often differ substantially from insurer estimates.
• Review your policy carefully: Understand your coverage provisions, exclusions, conditions, and deadlines. Pay attention to any proof of loss submission requirements and suit limitation clauses.
• Track all communications: Keep records of every phone call, email, and letter to and from Great Lakes. Note dates, names, and what was said or promised.
• Consult an attorney before accepting any settlement: Once you sign a release or accept a final payment check that is clearly marked as full settlement, you may forfeit the right to seek additional compensation.

Time limits matter. Florida has a one-year statute of limitations for most first-party property insurance claims under recent legislative changes, shortening the window that previously existed. Missing this deadline eliminates your right to sue entirely, regardless of how strong your case may be.

Why Retaining a Florida Property Insurance Attorney Matters

Insurance companies employ teams of adjusters, engineers, and attorneys whose job is to minimize claim payouts. As a homeowner navigating this process alone, you face a significant informational and resource imbalance. An attorney who regularly handles property insurance disputes understands how to challenge low estimates, identify procedural violations, draft a legally effective Civil Remedy Notice, and evaluate whether litigation or appraisal is the better path for your claim.

Legal representation also changes the negotiating dynamic. Insurers know that a properly filed bad faith claim exposes them to damages well beyond the policy limits, and that fee-shifting statutes mean they may be responsible for your attorney's fees if you prevail. That exposure creates a strong incentive to resolve legitimate claims fairly once counsel is involved.

Whether Great Lakes denied your hurricane damage claim, gutted your roof repair estimate, or has been delaying without justification for months, Florida law provides a framework to hold the company accountable. You paid your premiums for protection — you deserve to receive the benefits you were promised.

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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