Insurance Bad Faith Claims in Orlando, FL

Insurance Bad Faith Claims in Orlando, FL

Florida policyholders pay their premiums expecting their insurer to act honestly and fairly when a claim arises. When an insurance company deliberately delays, undervalues, or denies a legitimate claim without reasonable basis, it may be engaging in insurance bad faith — a serious legal violation that can expose the insurer to damages well beyond the original policy limits.

Orlando residents dealing with unresponsive or dishonest insurers have powerful legal tools available under Florida law. Understanding how bad faith claims work is the first step toward holding an insurer accountable.

What Constitutes Insurance Bad Faith in Florida

Florida recognizes two types of bad faith claims: first-party bad faith and third-party bad faith. First-party bad faith involves your own insurer failing to deal fairly with you under a policy you purchased — homeowner's insurance, health insurance, or uninsured motorist coverage, for example. Third-party bad faith occurs when an insurer defending its policyholder refuses to settle a claim within policy limits, exposing that policyholder to excess judgment.

Under Florida Statute § 624.155, an insurer commits 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. Specific conduct that courts and juries in Orlando have found to constitute bad faith includes:

• Denying a valid claim without conducting a reasonable investigation
• Misrepresenting policy language or coverage terms to the insured
• Offering a settlement amount grossly below the value of the claim
• Unreasonably delaying payment after liability becomes clear
• Failing to communicate settlement offers to the policyholder
• Compelling an insured to litigate to recover amounts clearly owed

The Civil Remedy Notice: A Critical Florida Requirement

One of the most important procedural requirements distinguishing Florida bad faith law from other states is the Civil Remedy Notice (CRN). Before filing a bad faith lawsuit against an insurer under § 624.155, a Florida claimant must first file a CRN with the Florida Department of Financial Services and serve it on the insurer.

The notice must specifically describe the alleged violation and the facts supporting the claim. Once served, the insurer has 60 days to cure the violation — typically by paying the full amount owed. If the insurer cures the violation within that window, the bad faith claim is extinguished. If it does not, the claimant may proceed to court.

This procedural step is a trap for the unwary. Missing the CRN requirement or filing an incomplete notice can sink an otherwise strong bad faith case before it begins. An experienced Orlando insurance attorney will ensure this notice is drafted precisely and served correctly.

Damages Available in a Florida Bad Faith Case

The financial stakes in a successful bad faith case are significantly higher than in a standard coverage dispute. When an insurer is found to have acted in bad faith, Florida law allows recovery of damages that can exceed the original policy limits. Available damages typically include:

• The full value of the underlying claim, without cap at the policy limit
• Consequential damages caused by the insurer's bad faith conduct, such as lost income or additional property damage from delayed repairs
• Emotional distress damages in appropriate circumstances
• Attorney's fees and court costs under Florida Statute § 627.428
• Punitive damages in cases involving willful, wanton, or malicious conduct

Florida Statute § 627.428 is particularly significant — it entitles prevailing policyholders to recover attorney's fees from the insurer. This provision levels the playing field against insurance companies with vast litigation resources and makes it financially viable to pursue legitimate bad faith claims.

Common Bad Faith Scenarios in Orlando

Orlando's insurance landscape creates fertile ground for bad faith conduct across several claim types. Hurricane and storm damage claims frequently give rise to bad faith disputes, particularly when insurers dispatch adjusters who systematically undervalue structural damage or attribute damage to pre-existing conditions rather than the covered storm event.

Auto accident cases involving uninsured or underinsured motorist (UM/UIM) coverage are another common source of bad faith litigation. When a seriously injured Orlando driver submits a UM claim and the insurer delays for months, demands excessive documentation, or makes an unreasonably low offer knowing the medical bills far exceed it, bad faith may be at play.

Homeowner's insurance claims — covering fire damage, water intrusion, and theft — often involve insurers invoking disputed policy exclusions without conducting thorough inspections or consulting qualified experts. When an adjuster's report contradicts the findings of the insured's own licensed contractor, and the insurer denies the claim based on that report alone, courts have found such conduct indicative of bad faith.

In Orlando's competitive real estate market, title insurance bad faith has also become more prevalent, particularly when title insurers fail to defend against known encumbrances or improperly disclaim coverage on technical grounds.

Steps to Take if Your Insurer Is Acting in Bad Faith

If you believe your insurer is not dealing with you honestly or fairly, taking immediate, deliberate action protects your rights and builds your case.

• Document everything. Keep copies of every letter, email, and text message exchanged with your insurer or its adjuster. Note the date, time, and content of every phone call.
• Get your claim denial or undervaluation in writing. Do not accept verbal explanations — ask the insurer to confirm all decisions in writing with the specific policy language supporting their position.
• Obtain independent evaluations. Hire a licensed public adjuster or contractor to assess your claim independently. This creates a documented record showing the gap between the insurer's valuation and the actual loss.
• Review your policy carefully. Understand what coverage you purchased and what obligations the insurer has under the contract, including required timeframes for acknowledging and paying claims.
• Consult an attorney before the CRN deadline. Given the 60-day cure window and the precision required in the Civil Remedy Notice, waiting too long can compromise your leverage and your legal rights.

Florida law imposes its own timeframes on insurers — generally requiring acknowledgment of a claim within 14 days and a coverage decision within 90 days. An insurer that repeatedly misses these deadlines without explanation is exhibiting the kind of pattern courts look at when evaluating bad faith conduct.

Insurance companies are sophisticated businesses with legal teams dedicated to minimizing payouts. When you are dealing with a denied or undervalued claim in Orlando, having an attorney who understands Florida's bad faith statutes and the local court landscape is not a luxury — it is a practical necessity.

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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