Insurance Bad Faith Fort Lauderdale Florida (182208)

Insurance Bad Faith Claims in Fort Lauderdale

Florida law imposes a duty of good faith on every insurance company operating in the state. When an insurer places its own financial interests above those of its policyholder, it may be acting in bad faith — and under Florida law, that conduct can expose the insurer to damages well beyond the original policy limits. Fort Lauderdale residents who have had valid claims delayed, underpaid, or denied without justification have legal remedies that can hold insurers accountable.

What Constitutes Insurance Bad Faith in Florida

Florida recognizes two categories of bad faith claims: first-party bad faith and third-party bad faith. First-party bad faith occurs when an insurer mistreats its own policyholder — for example, by unreasonably delaying payment on a homeowner's claim after a hurricane or refusing to pay valid medical bills under a PIP policy. Third-party bad faith arises when an insurer fails to protect its insured from a lawsuit by an injured third party, such as refusing to settle a personal injury claim within policy limits when a reasonable settlement was available.

Florida Statute § 624.155 governs first-party bad faith and provides a statutory cause of action against insurers who fail to attempt in good faith to settle claims when, under all the circumstances, it could and should have done so. Common examples of bad faith conduct include:

• Denying a claim without conducting a reasonable investigation
• Misrepresenting policy provisions to avoid paying a claim
• Failing to acknowledge communications within a reasonable time
• Offering an unreasonably low settlement amount
• Delaying payment without a valid basis after liability becomes clear
• Canceling a policy in retaliation for filing a claim

The Civil Remedy Notice Requirement

Before filing a first-party bad faith lawsuit in Florida, a policyholder must comply with a critical procedural step: filing a Civil Remedy Notice (CRN) with the Florida Department of Financial Services. This notice must identify the insurer, the specific statutory violations, and the facts supporting the claim. The insurer then has 60 days to cure the violation by paying the full amount owed or otherwise remedying the conduct complained of.

If the insurer fails to cure within that 60-day window, the policyholder may proceed with a lawsuit. Missing this step — or filing an insufficient CRN — can be fatal to a bad faith claim, which is why consulting an attorney before submitting the notice is critical. Courts in Broward County have consistently enforced this requirement strictly, and an improperly filed CRN will not preserve your right to sue.

Third-party bad faith claims under Florida common law do not require a CRN. These claims typically arise after an excess judgment has been entered against the insured — meaning the verdict exceeds the policy limits — because the insurer refused a reasonable settlement opportunity.

Damages Available in a Bad Faith Case

One of the most powerful aspects of a successful bad faith claim is the potential for damages that exceed the original policy limits. In a third-party bad faith case, an insurer who wrongfully refuses to settle can be held responsible for the entire judgment entered against its insured, regardless of what the policy limit was. If an insurer had a $100,000 policy but refused a $90,000 settlement and a jury later awarded $500,000, the insurer may owe the full $500,000.

In first-party bad faith cases, damages may include:

• The full amount of the underlying claim that was wrongfully denied or underpaid
• Consequential damages that were foreseeable at the time the policy was issued
• Attorney's fees and court costs
• In cases involving willful, malicious, or fraudulent conduct, punitive damages may also be available

Florida courts have awarded significant punitive damages in egregious cases where insurers demonstrated a pattern of misconduct or intentionally deceived policyholders. Fort Lauderdale juries have historically taken insurance misconduct seriously, particularly in property damage cases following hurricane seasons where insurers have been accused of systematic underpayment.

Proving Bad Faith Against a Fort Lauderdale Insurer

To succeed on a bad faith claim, you generally must first establish that the insurer was obligated to pay the underlying claim — meaning you must win the breach of contract case before pursuing bad faith damages. This is known as the "prerequisite" rule, and it means bad faith litigation is typically a two-step process.

Evidence that supports a bad faith claim includes internal claims notes showing adjuster decisions, communications between the insurer and its retained experts, the timeline of the claim investigation compared to statutory deadlines, and any prior complaints or regulatory actions against the insurer. Florida Statute § 627.70131 requires property insurers to acknowledge receipt of a claim within 14 days and make a coverage determination within 90 days of receiving all necessary information. Violations of these timelines are strong evidence of bad faith.

Expert testimony is often needed to establish the standard of claims handling in the industry and to demonstrate how the insurer's conduct deviated from what a reasonable insurer would have done under the same circumstances. Fort Lauderdale courts are familiar with these cases, particularly following major weather events that have generated waves of disputed property claims throughout Broward County.

Steps to Take if You Suspect Bad Faith

If you believe your insurer is handling your claim improperly, act quickly. Florida's statute of limitations for bad faith claims is five years for statutory claims under § 624.155 and four years for common law bad faith. However, delays in acting can weaken your case as evidence becomes harder to gather and deadlines approach.

Take the following steps as soon as possible:

• Document everything: Keep records of every phone call, email, letter, and adjuster visit related to your claim
• Request your claim file: Under Florida law, you are entitled to a copy of your complete claims file
• Get an independent appraisal: If the dispute is over the value of a loss, a public adjuster or independent expert can provide a second opinion
• Review your policy carefully: Understand what coverage you purchased and the deadlines for filing suit under your policy's terms
• Consult an attorney before filing a CRN: The content of the Civil Remedy Notice can define the scope of your eventual lawsuit

Insurance companies in Florida have sophisticated legal teams and experienced adjusters whose job is to minimize payouts. Policyholders in Fort Lauderdale who try to fight back without legal representation are at a significant disadvantage. An attorney experienced in Florida bad faith law can evaluate your claim file, identify violations, and build a case that puts maximum pressure on the insurer to make you whole.

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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