Insurance Bad Faith Claims in Hollywood, Florida

Insurance Bad Faith in Hollywood, Florida: What Policyholders Need to Know in 2026

When a Florida homeowner files a property insurance claim, they trust their insurer to investigate thoroughly, communicate promptly, and pay what is owed under the policy. When an insurer falls short of those obligations — dragging out an investigation, grossly undervaluing a claim, or flat-out denying a legitimate loss — the conduct may cross the line into insurance bad faith. Hollywood homeowners in Broward County have specific statutory rights under Florida law to hold insurers accountable for that misconduct, including the right to seek damages that go beyond the underlying policy limits.

Understanding how bad faith works, what the law requires, and when to act can mean the difference between recovering full compensation and walking away with far less than you are owed. If you believe your insurer has treated you unfairly, call or text (833) 657-4812 for a free consultation.

What Florida Law Says About Insurance Bad Faith

Florida's primary bad faith statute is Fla. Stat. § 624.155. It creates a civil remedy against insurers that fail to settle claims in good faith when, under all the circumstances, they could and should have done so. The statute covers first-party claims — meaning claims you file against your own insurer under a homeowners, wind, flood, or property policy — as well as third-party liability contexts.

For a first-party bad faith action, the law requires the policyholder to file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and serve it on the insurer before filing a lawsuit. The insurer then has 60 days to cure the alleged violation. If the insurer fully remedies the problem within that window, the bad faith claim is extinguished. If it does not, the policyholder may proceed to circuit court.

Bad faith under § 624.155 can include:

• Not attempting in good faith to settle claims when the insurer could and should have done so
• Failing to promptly investigate a claim or denying without reasonable basis
• Making a low-ball settlement offer that does not reflect the actual loss
• Misrepresenting policy provisions to avoid paying a valid claim
• Delaying payment without a legitimate factual or legal basis

Importantly, a bad faith claim is only ripe after the underlying coverage dispute has been resolved in the policyholder's favor — either by verdict, appraisal award, or settlement. The insurer must first be found liable for the underlying claim before extra-contractual damages are available.

Florida's Claim-Handling Deadlines and the 2022–2023 Reforms

Florida law under Fla. Stat. § 627.70131 imposes strict timelines on property insurers handling claims:

• The insurer must acknowledge receipt of a claim within 14 days
• Begin investigation within 10 days of proof-of-loss submission
• Pay or deny the claim within 90 days of receiving proof of loss

Violations of these deadlines are relevant evidence in a bad faith action. Repeated, pattern violations can strengthen a § 624.155 claim considerably.

The 2022 and 2023 Florida property insurance reform legislation — particularly SB 2A (2022) and HB 837 (2023) — significantly changed the landscape. The reforms eliminated one-way attorney fees in most property insurance contexts and largely repealed the Assignment of Benefits (AOB) framework under § 627.7152. They also tightened the standards for bad faith claims, raising the bar slightly for what constitutes actionable insurer misconduct. For Hollywood homeowners, this means having an attorney who understands the post-reform environment is more important than ever.

Common Bad Faith Tactics Hollywood Homeowners Face

Bad faith does not always look like an obvious refusal. In practice, Hollywood policyholders often encounter subtler tactics that can be just as financially devastating:

Inadequate investigation. An adjuster spends less than an hour on a roof damaged by a hurricane, misses obvious storm-related damage, and issues a lowball estimate. When the policyholder contests the amount, the insurer stalls rather than reinspect.

Misclassifying the cause of loss. An insurer attributes wind-driven water intrusion to "pre-existing wear and tear" or "maintenance deficiency" rather than storm damage — even when a licensed contractor's report clearly links the damage to a named storm event.

Lowball appraisal estimates. The insurer's preferred contractor estimate is tens of thousands of dollars below actual repair costs. When the homeowner gets an independent estimate, the insurer refuses to reconcile the discrepancy and proceeds to close the claim at the lower figure.

Prolonged delays without explanation. The insurer requests documentation repeatedly, claims to have never received it, and extends the investigation past statutory deadlines with no substantive updates — effectively wearing down the claimant.

Denial without written explanation. Florida law requires insurers to provide a written denial with the specific policy provisions relied upon. A denial that merely says "not covered" without citation or analysis is itself a red flag.

If any of these patterns sound familiar, see if you qualify to work with Louis Law Group on your claim.

The Statute of Limitations: Do Not Miss Your Window

Florida's general statute of limitations for property insurance contract claims is five years under Fla. Stat. § 95.11(2)(e) for written contracts — though the 2023 reforms reduced this to five years for new claims, and policies issued or renewed after January 1, 2023 may be subject to stricter contractual time limits. A separate bad faith action under § 624.155 accrues once the underlying claim is resolved, but the 60-day CRN cure period must still be satisfied before suit.

Named-storm deductibles add another layer of complexity for Hollywood homeowners in South Florida. Many policies carry separate hurricane or wind deductibles — often 2% to 5% of the insured value — that are distinct from the standard all-other-perils deductible. An insurer that improperly applies a higher hurricane deductible to a non-hurricane wind event may be underpaying in a way that, combined with other conduct, supports a bad faith claim.

What to Do If You Suspect Bad Faith

Taking the right steps early protects your rights and builds the evidentiary record you will need if litigation becomes necessary.

1. Document everything in writing. Confirm all conversations with the adjuster via follow-up email. Keep a log of every call, including date, time, who you spoke with, and what was said.
2. Preserve all correspondence. Every letter, email, and estimate from the insurer is potential evidence. Do not discard anything.
3. Get your own independent estimate. Hire a licensed public adjuster or contractor to provide a separate damage assessment. A large gap between that estimate and the insurer's number is significant.
4. Review your policy in full. Understand the coverage, exclusions, conditions, and any post-loss obligations. Failure to comply with post-loss obligations (such as submitting a sworn proof of loss) can give the insurer a defense, so make sure you have met every requirement.
5. Do not accept a lowball check without understanding the implications. Cashing a check marked "final settlement" or signing a release without legal review can extinguish your right to pursue additional amounts.
6. Consult an attorney before filing the CRN. The Civil Remedy Notice must be drafted carefully and served correctly. Errors in the CRN can undermine the bad faith case.

How an Attorney Can Help Hollywood Homeowners

A property insurance attorney who handles bad faith cases in Hollywood and Broward County brings several advantages to the table. First, they can analyze the insurer's entire claims file — which is discoverable in litigation — to identify whether the insurer deviated from its own internal guidelines or industry standards. Second, they can retain expert witnesses such as engineers, roofing contractors, and public adjusters to document the true scope of loss and establish that the insurer's position was unreasonable.

Third, and critically, an attorney can evaluate whether the insurer's conduct crosses the threshold for extra-contractual damages. Under Florida law, a successful bad faith plaintiff may recover damages beyond the policy limits, including consequential damages caused by the insurer's delay or denial — such as out-of-pocket repair costs, additional living expenses, and in some cases attorney fees. The threat of extra-contractual exposure often creates real pressure for the insurer to resolve the underlying dispute fairly.

Call or text (833) 657-4812 to speak with our team about your property insurance claim. There is no fee unless we recover for you.

Frequently Asked Questions About Insurance Bad Faith in Hollywood, Florida

Does my insurer's slow response automatically mean bad faith?

Not automatically, but it is a relevant factor. Under Fla. Stat. § 627.70131, insurers have specific deadlines to acknowledge claims, begin investigations, and pay or deny within 90 days of receiving proof of loss. Delays beyond those statutory windows, particularly when combined with inadequate investigation or a low settlement offer, can support a bad faith claim. Isolated delay alone, without other misconduct, may not be sufficient to prevail under § 624.155.

Can I file a bad faith claim if my insurer denied my claim entirely?

Yes, but the bad faith claim generally cannot be pursued until the underlying coverage dispute is resolved in your favor — through litigation, appraisal, or settlement. Once your right to coverage is established, you can then pursue extra-contractual damages for the insurer's bad faith conduct during the claims handling process. The Civil Remedy Notice and 60-day cure period still apply before any lawsuit can be filed.

What is a Civil Remedy Notice and why does it matter?

A Civil Remedy Notice (CRN) is a formal written notice filed with the Florida Department of Financial Services and served on the insurer before a bad faith lawsuit can proceed. It identifies the insurer's specific alleged violations and gives the insurer 60 days to cure. If the insurer fully remedies the violation within that period, the bad faith action is barred. If it does not, the policyholder can proceed to court. Filing a CRN that is vague or procedurally defective can seriously harm your case, which is why attorney involvement at this stage is important.

How have the 2022–2023 Florida insurance reforms affected bad faith claims?

The reforms, particularly HB 837 (2023), made bad faith claims more difficult to bring in some respects. They eliminated the insured's ability to recover one-way attorney fees in most circumstances and tightened the standards for establishing that an insurer acted unreasonably. However, the core § 624.155 remedy remains available. Hollywood homeowners with strong facts — documented delays, large valuation gaps, or clear misrepresentation — can still pursue bad faith claims, but the legal landscape requires careful navigation with experienced counsel.

What damages can I recover in a successful bad faith lawsuit?

In a successful first-party bad faith action under Florida law, you may recover the full value of your underlying claim (if not already paid), plus extra-contractual damages — meaning losses you suffered as a direct result of the insurer's bad faith conduct. These can include out-of-pocket repair or mitigation costs, additional living expenses incurred while displaced, and potentially consequential economic losses tied directly to the insurer's delay or denial. Attorney fees may also be recoverable in certain circumstances. Each case is fact-specific, and outcomes depend on the evidence developed.

See if you qualify for a bad faith or property damage claim review with our team.

This article is for general informational purposes only and does not constitute legal advice. Reading this content does not create an attorney-client relationship between you and Louis Law Group.