Insurance Bad Faith Claims in St. Petersburg, FL

Insurance Bad Faith Claims in St. Petersburg, FL

When you file an insurance claim after an accident, property damage, or injury, you expect your insurance company to handle it honestly and promptly. Florida law imposes a legal duty on insurers to act in good faith toward their policyholders. When an insurer violates that duty—by unreasonably delaying payment, wrongfully denying a valid claim, or offering a settlement far below what the claim is worth—you may have grounds for a bad faith insurance lawsuit in St. Petersburg.

Bad faith claims are separate from and in addition to the underlying insurance dispute. They can result in damages that exceed the original policy limits, making them a powerful tool for policyholders who have been mistreated by their insurers.

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 occurs when your own insurance company treats you unfairly. Examples include a homeowner whose property insurer refuses to pay a legitimate hurricane damage claim, or an injured driver whose uninsured motorist carrier lowballs a serious injury settlement.

Third-party bad faith arises when an insurer fails to protect its own insured from a judgment that exceeds the policy limits. If an insurance company refuses a reasonable settlement demand within policy limits and a jury later returns a verdict above those limits, the insurer can be held liable for the excess judgment.

Florida Statute § 624.155 governs bad faith claims and identifies specific insurer conduct that qualifies, including:

• Failing to attempt in good faith to settle claims when liability is clear
• Not attempting to settle claims promptly, fairly, and equitably
• Compelling policyholders to initiate litigation to recover amounts clearly owed
• Failing to acknowledge and act on communications about claims within a reasonable time
• Misrepresenting pertinent facts or policy provisions
• Conducting incomplete investigations of claims

The Civil Remedy Notice Requirement

Before filing a statutory bad faith lawsuit in Florida, policyholders must follow a specific procedural step that catches many claimants off guard. Under § 624.155, you must file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and serve a copy on the insurer.

The CRN identifies the insurer, the policy number, the claim number, and the specific statutory violations alleged. Once the notice is filed, the insurer has 60 days to cure the violation—meaning it can pay the full amount owed or correct the conduct described. If the insurer cures within that window, the bad faith claim is extinguished.

This 60-day cure period makes timing critical. Filing the CRN too early, before the underlying claim dispute is mature, can be premature. Filing too late can complicate or bar your bad faith claim entirely. In St. Petersburg and throughout Pinellas County, an experienced attorney can help you determine the right moment to file and ensure the notice contains all required information.

Common Bad Faith Tactics Used by Insurers in St. Petersburg

Insurance companies operating in the Tampa Bay area—including major carriers handling homeowners, auto, and commercial policies in St. Petersburg—have been known to use tactics that may constitute bad faith. Recognizing them is the first step in protecting your rights.

• Unreasonable delays: Sitting on a claim for months without a legitimate reason, particularly after a hurricane or flood event when adjusters are overwhelmed but still obligated to act promptly.
• Low-ball offers: Offering a fraction of what the claim is worth without a reasonable basis, then refusing to negotiate in good faith.
• Denying claims without investigation: Closing a claim as "no coverage" before adequately reviewing the facts, photos, or expert opinions.
• Misrepresenting policy language: Citing exclusions or provisions that do not actually apply to your situation in order to avoid payment.
• Requesting excessive documentation: Repeatedly demanding duplicate records, irrelevant documents, or unnecessary examinations under oath as a delay tactic.
• Ignoring communications: Failing to return calls, respond to emails, or acknowledge written correspondence from the policyholder or their attorney.

Damages Available in a Florida Bad Faith Claim

One of the most significant aspects of a successful bad faith claim is the damages available. Unlike a standard breach of contract claim for unpaid insurance benefits, a bad faith judgment can include:

• The full amount of the underlying claim, regardless of policy limits in some third-party contexts
• Consequential damages caused by the insurer's delay or denial, such as loss of property, additional living expenses, or medical complications from delayed treatment
• Attorney's fees and costs under Florida's fee-shifting statutes
• Punitive damages in cases involving particularly egregious, intentional, or reckless conduct

Florida courts have upheld multi-million dollar verdicts against insurers who deliberately stonewalled valid claims. In the St. Petersburg area, where property values are high and hurricane exposure is significant, the stakes in bad faith litigation can be substantial.

Steps to Take If You Suspect Insurance Bad Faith

If you believe your insurer is handling your claim in bad faith, acting methodically will protect your legal rights and strengthen any future lawsuit.

• Document everything: Save every letter, email, text message, and voicemail from your insurer. Note dates and the substance of every phone call.
• Get your claim denial in writing: If an adjuster verbally denies your claim or tells you coverage does not apply, request the denial in writing with the specific policy provisions cited.
• Obtain an independent appraisal or estimate: A contractor, public adjuster, or expert opinion can counter the insurer's low valuation with objective evidence.
• Request your claims file: Florida law entitles policyholders to obtain a copy of the claims file, which can reveal whether the insurer's internal notes contradict its stated reasons for denial.
• Consult an attorney before signing anything: Signing a release or accepting a settlement payment, even a partial one, can waive your right to pursue further claims including bad faith.

Time limits matter. Florida's statute of limitations for bad faith claims is generally five years from the insurer's violation, but practical deadlines—including the CRN filing and the resolution of the underlying claim—can shorten your effective window considerably. Do not wait until the situation becomes urgent to seek legal advice.

Need Help? If you have questions about your case, call or text 833-657-4812 for a free consultation with an experienced attorney.

Related Articles

• Tallahassee Mold Damage Attorney
• Toxic Mold Insurance Claims Lawyer Naples FL
• Insurance Denied Your Mold Claim in Orlando