Guide to Property Insurance Claim Denials in Hollywood, Florida

Introduction: Mold Damage and Claim Denials in Hollywood, Florida

Hollywood, Florida, sits between Miami and Fort Lauderdale on the Atlantic coast, a zone of high humidity, frequent tropical storms, and year-round moisture. These conditions make mold growth a persistent threat for homeowners. When mold appears after water intrusion—whether from a burst pipe, roof leak, or hurricane—Hollywood residents often turn to their property insurance policies for relief. Unfortunately, many policyholders discover that their insurer denies, delays, or underpays mold-related claims. This guide explains why denials happen, what rights Florida law gives you, and the exact steps Hollywood homeowners should follow to challenge an unfair decision.

Understanding Your Rights in Florida

Key Policyholder Protections

• Prompt Claim Handling: Under Fla. Stat. § 627.70131(5)(a), an insurer must pay or deny a residential property claim within 90 days after receiving notice, unless circumstances beyond its control prevent it.

• Right to Interest on Late Payments: If the carrier misses statutory deadlines without a valid reason, interest accrues automatically from the date the insurer received the claim (Fla. Stat. § 627.70131(5)(a)).

• Attorney’s Fees for Wrongful Denials: When a policyholder wins a coverage lawsuit, the court shall award reasonable attorney’s fees and costs under Fla. Stat. § 627.428(1).

• Five-Year Suit Limitation: Most property insurance disputes are treated as contract actions, giving you up to five years to file suit under Fla. Stat. § 95.11(2)(e). Always confirm any shorter contractual limitation in your policy.

Policy Language Unique to Mold

Many Florida policies include a mold exclusion or a strict sub-limit (often $10,000) for “fungi, wet or dry rot, or bacteria.” However, state regulators require insurers to alert consumers clearly about these limits. If mold results directly from a covered peril—such as wind-driven rain from a hurricane—coverage may apply despite an exclusion. Policyholders must show proximate cause with credible evidence (e.g., moisture mapping, lab testing, or licensed adjuster reports).

Common Reasons Property Insurance Companies Deny Claims in Florida

1. Alleged Late Notice

Insurers frequently claim that homeowners waited too long to report water or mold damage. Under Fla. Stat. § 627.70132, claims arising from a hurricane must be reported within one year of the date the hurricane made landfall; all other property claims must be reported within two years of the date of loss. However, you may rebut a late-notice defense by demonstrating no prejudice to the insurer.

2. Pre-Existing or Wear-and-Tear Defenses

Carriers may argue that mold resulted from long-term moisture or maintenance issues. Florida courts have held that insurers bear the burden of proving an exclusion applies (see Castillo v. State Farm Fla. Ins. Co., 971 So. 2d 820, 824–25 (Fla. 3d DCA 2007)). You can counter with expert testimony that sudden water damage was the true cause.

3. Mold Sub-Limits or Exclusions

Even if coverage exists, insurers might cap payouts at the policy’s mold sub-limit. Review your declarations page and endorsements carefully; some policies allow you to purchase increased “Fungi” coverage up to $50,000 or more. If you paid additional premium but the carrier ignores the higher limit, raise the issue in writing.

4. Alleged Fraud or Misrepresentation

Florida Statutes permit a carrier to void coverage if it proves material misrepresentation. Always remain truthful in your application and claim paperwork. If the insurer accuses you of fraud without concrete proof, that may constitute bad faith.

5. Policy Conditions Not Met

Typical conditions include mitigating further damage, allowing inspections, and submitting a sworn proof-of-loss within 60 days of the insurer’s request. Florida courts generally require insurers to show substantial prejudice before enforcing forfeiture of coverage (American Integrity Ins. Co. v. Estrada, 276 So. 3d 905, 914–15 (Fla. 3d DCA 2019)).

Florida Legal Protections & Regulations

Consumer-Friendly Statutes

Homeowner Claims Bill of Rights (Fla. Stat. § 627.7142)

  - Requires insurers to acknowledge your claim within 14 days.

  - Obligates carriers to provide a detailed estimate of damages if requested in writing.

Notice of Intent to Litigate – Pre-Suit Requirements (Fla. Stat. § 627.70152)

  - You must give written notice to the insurer and Florida Department of Financial Services (DFS) at least 10 business days before filing suit.

  - The insurer then has the option to reinspect and make a better offer, promoting early resolution.

Civil Remedy Notice of Insurer Violations (Fla. Stat. § 624.155)

  - Allows policyholders to place carriers on notice for acting in bad faith.

  - Insurer has 60 days to cure after DFS accepts the notice, or risk extra-contractual damages.

Florida Administrative Code Standards

The Office of Insurance Regulation (OIR) enforces Fla. Admin. Code R. 69O-166.031, outlining unfair claims settlement practices. Examples include misrepresenting coverage provisions or compelling policyholders to litigate for fair recovery. Document any such conduct to strengthen a bad-faith claim later.

Steps to Take After a Denial in Florida

1. Review the Denial Letter Thoroughly

Florida law requires the insurer to state specific policy provisions relied upon (Fla. Stat. § 627.70131(7)(a)). Compare those sections to the actual exclusion or condition in your policy.

2. Request a Complete, Certified Copy of Your Policy

The insurer must furnish a copy within 30 days of your written request (Fla. Stat. § 627.4137). Make the request in writing so you can prove the timeline.

3. Gather Independent Evidence

• Hire a licensed mold assessor to perform air and surface testing.

• Obtain moisture readings and thermal images.

• Photograph damage areas before and after remediation.

4. File a Complaint with the Florida Department of Financial Services

The DFS Division of Consumer Services offers free mediation for property insurance disputes under Fla. Stat. § 627.7015. Submit an online form or call 877-MY-FL-CFO (693-5236). DFS will contact the insurer and arrange mediation within 30 days. Participation is non-binding; you can still sue if unsatisfied.

5. Consider an Appraisal

Many policies include an appraisal clause to resolve disagreements on the amount of loss. Each side picks an appraiser, and they select an umpire. While not mandatory in Florida law, appraisal can be faster and cheaper than litigation. Read your policy for deadlines and comply strictly.

6. Send a Notice of Intent to Litigate

Under Fla. Stat. § 627.70152, your attorney must file a Notice of Intent with DFS and the insurer before suing. The notice must include the alleged facts, disputed amount, and supporting documents.

When to Seek Legal Help in Florida

Indicators You Need a Florida Attorney

• The insurer accuses you of fraud or misrepresentation.

• You face complex causation arguments (e.g., wind vs. flood vs. ongoing leak).

• The carrier ignores statutory deadlines or refuses to communicate.

• You have extensive mold remediation costs exceeding the policy sub-limit.

Choosing the Right Counsel

Verify that your lawyer is licensed and in good standing with The Florida Bar (Florida Bar Member Search). Look for experience in first-party property litigation and familiarity with South Florida building codes, such as Broward County’s “HVHZ” (High-Velocity Hurricane Zone) roofing standards.

Local Resources & Next Steps for Hollywood Homeowners

Hollywood-Specific Risk Factors

According to the National Flood Insurance Program, large sections of Hollywood fall within AE and VE coastal flood zones. After heavy rainfall or storm surge, trapped moisture can foster mold within 48 hours. Broward County building codes (Section 9(50)-3) require mold-resistant drywall in new construction, but older homes may lack such protection, increasing claim frequency.

Community Assistance

• Hollywood Building Division: Obtain permits and inspection reports that support your claim (2600 Hollywood Blvd., Hollywood, FL 33020).

• Broward County Environmental Engineering & Permitting: Offers mold prevention tips and can provide environmental testing references.

• South Florida Water Management District: Publishes rainfall data useful for proving weather-related causes.

Helpful External Resources

Florida DFS Consumer Services Florida Statutes Chapter 627 Online Florida Office of Insurance Regulation Consumer Resources

Legal Disclaimer: This information is for educational purposes only and does not constitute legal advice. Consult a licensed Florida attorney for guidance on your specific situation.

If your property insurance claim was denied, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review.