Insurance Bad Faith Hollywood Florida

Insurance Bad Faith Claims in Hollywood, FL

When you file a claim after an accident, property damage, or injury, your insurance company has a legal duty to handle it fairly and in good faith. Florida law imposes strict obligations on insurers—and when they violate those obligations, policyholders in Hollywood and throughout Broward County have the right to pursue a bad faith claim. These cases can result in damages well beyond the original policy limits, including compensation for attorney's fees and emotional distress.

What Is Insurance Bad Faith Under Florida Law?

Florida recognizes two types of insurance bad faith claims: first-party bad faith and third-party bad faith. First-party bad faith arises when your own insurer fails to deal fairly with your claim—for example, when your homeowner's insurer unreasonably denies hurricane damage or your auto insurer lowballs a PIP claim. Third-party bad faith occurs when a liability insurer fails to reasonably settle a claim against its insured, exposing that insured to a judgment exceeding policy limits.

The governing statute is Florida Statute § 624.155, which allows policyholders to sue insurers who fail to attempt in good faith to settle claims when it could and should have done so under the circumstances. Before filing suit, however, you must follow a specific pre-suit process—a critical procedural requirement many claimants miss.

Common Examples of Bad Faith Conduct by Insurers

Insurance companies engage in bad faith through a wide range of tactics. Hollywood residents dealing with property damage from storms, flooding, or fires frequently encounter these abusive practices:

• Unreasonable claim denials — Rejecting a valid claim without a legitimate basis, or misrepresenting policy language to justify denial
• Lowball settlement offers — Offering far less than the documented value of a loss, forcing claimants into prolonged disputes
• Failure to investigate — Not conducting a prompt, thorough, and objective investigation of the claim
• Excessive delays — Stalling the claims process without valid reason, leaving policyholders without payment for months
• Misrepresentation of coverage — Making false or misleading statements about what the policy covers
• Refusing to communicate — Failing to respond to calls, letters, or documentation requests in a timely manner

Florida's Department of Financial Services and the Florida Insurance Code set clear timelines for claim acknowledgment, investigation, and payment. Insurers are generally required to acknowledge a claim within 14 days and pay or deny within 90 days of receiving proof of loss. Violations of these timelines can support a bad faith claim.

The Civil Remedy Notice: Florida's Required Pre-Suit Step

One of the most important—and often misunderstood—aspects of Florida bad faith law is the Civil Remedy Notice (CRN). Before filing a lawsuit under § 624.155, you must file a CRN with the Florida Department of Financial Services and serve it on the insurer. The CRN identifies the specific violations, the policy at issue, and the facts supporting your claim.

Once the CRN is filed, the insurer has 60 days to cure the violation. This means they can avoid a bad faith lawsuit by paying the full amount owed or otherwise correcting the misconduct. If the insurer fails to cure within 60 days, you may proceed with litigation. Missing this step or filing a defective CRN can forfeit your right to pursue bad faith damages entirely—which is why working with an experienced attorney from the outset is essential.

Damages Available in a Florida Bad Faith Lawsuit

A successful bad faith claim in Florida can yield substantially more than a standard breach of contract action. Under § 624.155 and Florida common law, damages may include:

• The full amount owed under the policy, including amounts previously denied or underpaid
• Consequential damages — Financial harm caused by the insurer's delay or denial, such as lost income or additional repair costs
• Attorney's fees and court costs
• In third-party cases, the entire judgment entered against the insured—even if it exceeds policy limits
• Potentially, damages for emotional distress and financial hardship in egregious cases

Florida courts have made clear that insurers cannot simply pay the claim at the last minute to escape accountability. If an insurer's bad faith conduct caused you harm during the delay—even if they eventually paid—you may still have a viable claim for those consequential losses.

What Hollywood Policyholders Should Do Right Now

If you believe your insurer has acted in bad faith, acting promptly protects your rights. Florida has a five-year statute of limitations for statutory bad faith claims under § 624.155, but waiting can harm your case as documents disappear, witnesses become unavailable, and claim records are harder to reconstruct.

Take these steps immediately:

• Document everything — Save all written communications, denial letters, adjuster reports, and notes from phone calls with dates and times
• Get an independent estimate — If your property claim was underpaid, obtain a public adjuster's assessment or contractor estimates to establish the true value
• Request your claim file — Florida law entitles you to a copy of your complete claim file, including internal notes and communications
• Consult an attorney before responding — Statements you make to your insurer can be used against you; legal guidance before further communication is critical
• Do not accept a partial settlement without legal review — Signing a release may bar you from pursuing bad faith damages even if the payment was inadequate

Hollywood's proximity to the coast means property claims—particularly for wind, water, and hurricane damage—are common. Insurers know that many policyholders are unfamiliar with their rights and will accept whatever they are offered. That dynamic is exactly what Florida's bad faith statutes were designed to correct.

Broward County courts have seen a steady volume of bad faith litigation, and juries in South Florida understand the power imbalance between insurers and policyholders. A well-documented bad faith case, supported by the insurer's own claim file and internal communications, can be extremely compelling.

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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