Insurance Bad Faith Claims in Tallahassee, FL

When you file an insurance claim after an accident, illness, or property loss, you expect your insurer to handle it fairly and promptly. Florida law requires nothing less. But insurance companies sometimes delay, underpay, or outright deny valid claims — conduct that crosses the line from mere negligence into bad faith. In Tallahassee and throughout Florida, policyholders have powerful legal tools to hold insurers accountable when they fail to honor their obligations.

What Constitutes Insurance Bad Faith in Florida

Florida recognizes two distinct categories of bad faith claims: first-party bad faith and third-party bad faith. First-party bad faith occurs when your own insurer — the company you pay premiums to — wrongfully handles your claim. Third-party bad faith arises when an at-fault party's liability insurer refuses to settle within policy limits, exposing their insured to a judgment that exceeds coverage.

Under Florida Statute § 624.155, an insurer acts in 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. Courts look at the totality of the insurer's conduct, not just isolated decisions. Common examples of bad faith conduct include:

• Unreasonably delaying claim investigations or payment decisions
• Denying a claim without a reasonable basis in the policy language or facts
• Failing to communicate promptly with the insured about claim status
• Misrepresenting policy terms or coverage provisions
• Offering a settlement far below the claim's documented value
• Conducting a biased or incomplete investigation
• Failing to defend a policyholder against a covered lawsuit

The Civil Remedy Notice: Florida's Mandatory First Step

Before filing a bad faith lawsuit in Florida, policyholders must follow a critical procedural requirement. Florida Statute § 624.155 requires that you file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and serve a copy on the insurer. This notice formally identifies the alleged bad faith violations and gives the insurer 60 days to cure the violation by paying the claim or taking corrective action.

This step is not optional — skipping it will result in dismissal of your lawsuit. The CRN must be specific. It should identify the statutory provisions violated, the facts supporting the violation, and the damages suffered. Tallahassee attorneys handling bad faith cases understand that a poorly drafted CRN can undermine an otherwise strong case, so precision matters from the outset.

If the insurer cures the violation within 60 days by paying the full amount owed, the bad faith claim is extinguished. If the insurer fails to cure, you may then proceed with a civil lawsuit seeking not just the original claim amount, but additional damages.

Damages Available in a Florida Bad Faith Case

One of the most significant aspects of Florida bad faith law is the range of damages available to prevailing policyholders. Unlike a standard breach of contract claim — where recovery is typically limited to the policy benefits owed — a successful bad faith claim can yield substantially greater compensation.

Damages in a Florida bad faith case may include:

• The full amount of the underlying claim, including any amount that exceeds policy limits in third-party cases
• Consequential damages caused by the insurer's delay or denial — such as financial hardship, loss of property, or medical complications from delayed treatment
• Attorney's fees and court costs under Florida Statute § 627.428, which applies to life and health insurers, and § 626.9373 for property and casualty insurers
• Punitive damages in cases involving particularly egregious or intentional misconduct

The attorney's fees provision is especially significant. Florida law requires insurers who lose bad faith cases to pay the policyholder's legal fees, removing a major financial barrier that might otherwise deter valid claims.

Tallahassee-Specific Considerations for Bad Faith Claims

As Florida's capital city, Tallahassee sits in Leon County, within the Second Judicial Circuit. The local courts handle a significant volume of insurance litigation, including cases involving state employee insurance plans and policies regulated by Florida agencies headquartered in the capital. Many of Florida's largest insurance regulators — including the Department of Financial Services and the Office of Insurance Regulation — operate out of Tallahassee, giving local attorneys unique familiarity with regulatory frameworks that often intersect with bad faith claims.

Tallahassee residents frequently encounter bad faith issues in the context of homeowner's insurance claims following severe weather events, auto insurance disputes after accidents on I-10 or US-27, and disability or health insurance denials. The region's vulnerability to hurricanes and tropical storms means that property insurance bad faith claims — particularly those involving delayed storm damage assessments or lowball settlement offers — are especially common.

It is also worth noting that Florida has undergone significant insurance reform legislation in recent years. Changes enacted in 2022 and 2023 affected aspects of attorney fee shifting and assignment of benefits rules. Working with an attorney who tracks these legislative developments is essential, as the legal landscape continues to evolve.

Steps to Take If You Suspect Bad Faith

If you believe your insurer is handling your claim improperly, act quickly. Insurance bad faith cases are built on documentation, and the evidence you gather early can determine whether your claim succeeds.

• Document everything: Save all correspondence, denial letters, emails, and recorded statements. Note the dates of every communication and who you spoke with.
• Request your claim file: Under Florida law, you have the right to obtain your complete claim file from the insurer, including adjuster notes and internal communications.
• Get an independent appraisal: For property claims, a licensed public adjuster or independent appraiser can establish the true value of your loss, creating a benchmark against which the insurer's offer can be measured.
• Track your damages: Keep records of any financial harm caused by the insurer's delay — missed mortgage payments, out-of-pocket medical costs, temporary housing expenses, or income lost due to a delayed disability payment.
• Consult an attorney before filing the CRN: Because the Civil Remedy Notice is a prerequisite to suit and must be accurate and specific, having an experienced attorney draft or review it is strongly advisable.

Time limits also apply. Florida's statute of limitations for bad faith claims is generally five years from the date the cause of action accrues — typically when the insurer denies the claim or the bad faith conduct becomes clear. However, this deadline can shift depending on the circumstances, and waiting too long risks losing your rights entirely.

Insurance companies employ teams of adjusters, lawyers, and experts whose job is to minimize what they pay. Leveling the playing field requires experienced legal representation from an attorney who understands both the substantive law and the procedural requirements specific to Florida bad faith litigation.

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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