Great Lakes Insurance SE Bad Faith Claims in Florida

Great Lakes Insurance SE Bad Faith Claims in Florida

Florida homeowners who purchase surplus lines coverage through Great Lakes Insurance SE often find themselves in a difficult position after filing a property damage claim. When Great Lakes denies, delays, or underpays a legitimate claim, policyholders have legal options — including bad faith claims that can result in damages well beyond the original policy limits.

Understanding your rights under Florida law is the first step toward recovering what you are owed.

What Is Insurance Bad Faith Under Florida Law?

Florida Statutes Section 624.155 governs civil bad faith actions against insurance companies. Under this statute, an insurer acts in bad faith when it fails to attempt in good faith to settle claims when, under all the circumstances, it could and should have done so — had it acted fairly and honestly toward its insured with due regard for the insured's interests.

For Great Lakes Insurance SE policyholders, bad faith commonly arises when the insurer:

• Denies a valid claim without conducting a reasonable investigation
• Offers a settlement amount that is grossly inadequate compared to the actual damage
• Delays the claims process without any legitimate justification
• Misrepresents policy provisions to avoid paying a covered loss
• Fails to acknowledge or respond to communications within a reasonable time
• Compels a policyholder to initiate litigation by refusing to negotiate in good faith

Before filing a bad faith lawsuit in Florida, policyholders must first send a Civil Remedy Notice (CRN) to the insurer and the Florida Department of Financial Services. The insurer then has 60 days to cure the violation. If they fail to do so, the bad faith action may proceed.

Great Lakes Insurance SE and Florida's Surplus Lines Market

Great Lakes Insurance SE is a German-domiciled insurer operating in the United States as a surplus lines carrier. Surplus lines insurers are not admitted carriers in Florida — meaning they operate outside the standard regulatory framework governed by the Florida Office of Insurance Regulation. They typically cover higher-risk properties that admitted carriers will not insure.

This distinction matters for homeowners. While surplus lines carriers are still bound by their policy contracts and must act in good faith, the regulatory pathway for complaints is different. Florida's surplus lines market is overseen through licensed surplus lines agents, and disputes often require direct litigation rather than the administrative remedies available for admitted carriers.

This does not mean Great Lakes can act without accountability. Florida courts have consistently applied bad faith standards to surplus lines insurers, and policyholders retain full rights to pursue civil remedies when Great Lakes mishandles their claim.

Common Ways Great Lakes Insurance SE Denies or Underpays Claims

Property damage claims handled by Great Lakes Insurance SE — particularly those involving wind, hurricane, water intrusion, and roof damage — are frequently disputed. Common tactics used to reduce or eliminate claim payments include:

• Blaming pre-existing conditions: Attributing legitimate storm or water damage to alleged wear and tear or prior deterioration that predates the loss event.
• Disputed causation: Claiming that damage was caused by flood rather than wind, or vice versa, to invoke policy exclusions.
• Lowball estimates: Using company-retained adjusters or preferred contractors who produce repair estimates far below actual replacement cost.
• Misapplying policy exclusions: Citing policy exclusions that do not actually apply to the facts of the loss.
• Lengthy claim investigations: Prolonging the investigation phase without reasonable cause, leaving homeowners without funds to repair their property.

Florida law requires insurers to acknowledge receipt of a claim within 14 days, begin investigation within 10 days of the proof of loss, and pay or deny the claim within 90 days of receiving the proof of loss. Violations of these statutory timeframes can support a bad faith claim and may entitle policyholders to interest on delayed payments.

Steps Florida Homeowners Should Take After a Denied Claim

If Great Lakes Insurance SE has denied or underpaid your claim, acting promptly protects your legal rights. The following steps are critical:

• Request the full claims file: You are entitled to a copy of your complete claims file, including all adjuster notes, engineering reports, photographs, and internal communications. This documentation often reveals how the insurer handled — or mishandled — your claim.
• Get an independent estimate: Hire a licensed public adjuster or independent contractor to assess the damage and provide an estimate based on current market pricing. This creates a documented basis for disputing a lowball offer.
• Review your policy carefully: Identify all coverages, exclusions, endorsements, and conditions. Great Lakes SE policies vary, and understanding the exact language is essential to challenging a denial.
• Invoke appraisal if available: Many Great Lakes policies include an appraisal clause that allows each party to select an independent appraiser to value the loss. If the two appraisers disagree, an umpire resolves the dispute. Appraisal can be an efficient way to overcome a significant valuation dispute without full litigation.
• File a Civil Remedy Notice: If bad faith conduct is evident, file a CRN with the Florida Department of Financial Services to trigger the 60-day cure period and preserve your right to pursue a bad faith action.
• Consult an attorney immediately: Florida's statute of limitations for property insurance claims is generally five years from the date of loss. However, given ongoing changes in Florida insurance law, acting sooner protects your options.

What You Can Recover in a Florida Bad Faith Case

A successful bad faith claim against Great Lakes Insurance SE in Florida can yield compensation that significantly exceeds your original policy benefits. Under Florida Statute 624.155, recoverable damages include:

• The full amount of the original claim that was wrongfully denied or underpaid
• Consequential damages flowing from the insurer's bad faith conduct — including additional living expenses, temporary repairs, or property deterioration caused by the delay
• Attorney's fees and court costs
• In cases of particularly egregious conduct, courts may also award extracontractual damages

Florida courts have made clear that the purpose of the bad faith statute is to deter insurance companies from treating claims as a business calculation — weighing the cost of paying a valid claim against the likelihood of a lawsuit. Holding Great Lakes accountable through litigation changes that calculus and protects all Florida policyholders.

If Great Lakes Insurance SE has denied your property damage claim, delayed your payment, or offered a settlement that does not reflect your actual loss, do not accept the outcome without exploring your legal options. An experienced property insurance attorney can evaluate the strength of your claim, identify any statutory violations, and pursue the full compensation you are entitled to under your policy and Florida law.

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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