Insurance Delay Tactics in Florida Claims

When you file an insurance claim after suffering a loss, you expect your insurance company to process your claim promptly and fairly. Unfortunately, many Florida policyholders experience frustrating delays that can span months or even years. These delay tactics often constitute bad faith under Florida law, entitling you to additional compensation beyond your original claim amount.

Understanding common delay tactics used by insurance companies can help you recognize when your insurer has crossed the line from legitimate claim investigation into actionable bad faith conduct. Florida law provides specific protections for policyholders and imposes strict obligations on insurers regarding claim handling timelines.

Florida's Legal Framework for Timely Claim Processing

Florida Statutes Section 627.70131 establishes clear deadlines for insurance companies handling claims. Within 14 days of receiving notice of a claim, insurers must acknowledge the claim and begin their investigation. They must notify you whether your claim is accepted or denied within 90 days after receiving proof of loss, unless they have a valid reason for additional time.

Additionally, Florida Administrative Code Rule 69O-170.0155 requires insurers to make claim payments within 90 days of reaching an agreement or receiving proof of loss. When an insurer violates these statutory timeframes without reasonable justification, they may be engaging in bad faith conduct that violates Florida Statutes Section 624.155.

These laws exist because delays can devastate policyholders. When your home is damaged, your business is interrupted, or you're facing medical expenses, you need your insurance benefits promptly. Delay tactics can force policyholders into financial hardship, pressure them to accept inadequate settlements, or even abandon valid claims entirely.

Common Delay Tactics Used by Florida Insurance Companies

Insurance companies employ numerous strategies to postpone claim resolution. Recognizing these tactics is the first step toward holding insurers accountable:

• Excessive documentation requests: Repeatedly asking for additional documents, photos, or information that has already been provided or is unnecessary to evaluate the claim
• Slow-walking investigations: Taking unreasonably long periods to inspect damage, interview witnesses, or review medical records
• Reassigning adjusters: Repeatedly changing which adjuster handles your claim, forcing you to restart communications and explanations
• Scheduling conflicts: Failing to schedule inspections promptly or repeatedly canceling and rescheduling appointments
• Ignoring communications: Not returning phone calls, emails, or letters for extended periods
• Unjustified examinations under oath: Requiring multiple depositions or examinations when one would suffice
• Unnecessary litigation threats: Forcing policyholders into appraisal or mediation processes to delay resolution
• Lowball offers followed by silence: Making an unreasonably low settlement offer then becoming unresponsive to counteroffers

In Orlando and throughout Florida, hurricane damage claims particularly suffer from delay tactics. After widespread catastrophic events, insurers sometimes deliberately slow their response, knowing that desperate homeowners may eventually accept inadequate settlements just to begin repairs.

How Delays Constitute Bad Faith Under Florida Law

Not every delay constitutes bad faith. Insurers have the right to conduct reasonable investigations and may need additional time in complex cases. However, when delays lack legitimate justification or when an insurer fails to diligently investigate and process your claim, bad faith may exist.

Florida courts have established that bad faith occurs when an insurer fails to act promptly on communications regarding claims or fails to investigate claims properly. The key question is whether the insurer's conduct was reasonable under the circumstances. Factors courts consider include:

• Whether the delay served any legitimate business purpose
• The complexity of the claim and investigation required
• Whether the insurer provided reasonable explanations for delays
• The insurer's responsiveness to your communications
• Whether similarly situated claims were processed more quickly
• The financial hardship imposed on you by the delay

When an insurance company's delay is deemed bad faith, you may recover not only the benefits owed under your policy but also consequential damages, attorney's fees, and in some cases, punitive damages designed to punish the insurer's misconduct.

Documenting Delay Tactics to Protect Your Rights

If you suspect your insurance company is using delay tactics, thorough documentation becomes essential to proving bad faith. Create a detailed timeline of all interactions with your insurer, including dates, times, names of representatives, and summaries of conversations.

Maintain copies of all written correspondence, including emails, letters, text messages, and online portal communications. When speaking by phone, follow up with an email confirming what was discussed and any commitments made by the adjuster or other insurance representative.

Document all deadlines your insurer misses and note each time you must make repeated requests for information about your claim status. If inspections are delayed or cancelled, record these incidents with dates and any explanations provided. Photograph any worsening damage that occurs during delays, as insurers sometimes become liable for additional deterioration caused by their failure to act promptly.

Keep records of financial hardships caused by the delay, such as temporary housing costs, repair expenses you had to cover personally, or business income losses. This documentation can support claims for consequential damages in a bad faith lawsuit.

Taking Action Against Insurance Company Delay Tactics

When facing unreasonable delays, take proactive steps to protect your interests. Send written demands to your insurance company noting the delay, referencing Florida's statutory timeframes, and requesting immediate action on your claim. This creates a paper trail demonstrating your diligence and the insurer's unresponsiveness.

Consider filing a complaint with the Florida Department of Financial Services, which regulates insurance companies. While this may not immediately resolve your claim, it creates an official record of the insurer's conduct and may prompt regulatory scrutiny.

Most importantly, consult with an experienced bad faith insurance attorney who understands Florida law. Many delay tactics only become apparent to legal professionals familiar with insurance industry practices. An attorney can evaluate whether your insurer's conduct constitutes actionable bad faith and can send a demand letter that often prompts insurers to take your claim seriously.

Florida law allows you to recover attorney's fees in successful bad faith cases, meaning the insurance company pays your legal costs rather than you. This fee-shifting provision levels the playing field between individual policyholders and large insurance corporations.

Time limits apply to bad faith claims under Florida law, so don't wait indefinitely while your insurer drags out your claim. The statute of limitations for breach of insurance contract claims is typically five years from the loss, but bad faith claims have different timing considerations that make early legal consultation important.

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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