Insurance Delay Tactics in Florida Bad Faith Claims

When you file an insurance claim after an accident or property loss, you expect your insurer to handle it promptly and fairly. Florida law requires exactly that. But insurance companies frequently employ deliberate delay tactics to wear down claimants, reduce payouts, or avoid paying legitimate claims altogether. Understanding these strategies — and knowing your legal rights — is critical to protecting your recovery in Orlando and throughout Florida.

How Florida Law Defines Bad Faith Insurance Conduct

Florida's Bad Faith Insurance statute, Section 624.155, Florida Statutes, establishes that insurers owe policyholders a duty of good faith and fair dealing. This means your insurance company must investigate claims promptly, communicate clearly, and make timely coverage decisions based on reasonable standards.

When an insurer unreasonably delays, denies, or underpays a valid claim, that conduct can rise to the level of statutory bad faith. Florida law also recognizes common law bad faith, which applies to third-party claims — for example, when an at-fault driver's liability insurer fails to protect you as an injured claimant.

Before filing a bad faith lawsuit in Florida, policyholders must first send a Civil Remedy Notice (CRN) to the insurer and the Florida Department of Financial Services. The insurer then has 60 days to "cure" the violation. If they fail to do so, you may proceed with a bad faith action.

Common Delay Tactics Florida Insurers Use

Insurance adjusters are trained to manage claims in ways that protect the company's bottom line. In Orlando and across Florida, the most common delay strategies include:

• Repeated requests for documentation: Asking for the same records multiple times, or demanding documents that are unnecessary or duplicative, stalls the process and frustrates claimants into abandoning their claims.
• Claiming the investigation is "ongoing": Insurers will keep a claim in limbo by citing an open investigation without any concrete timeline or explanation of what remains unresolved.
• Switching adjusters: Reassigning your file to a new adjuster resets internal timelines and forces you to re-explain your claim from the beginning.
• Disputing causation without basis: Insurers may claim that your injuries or damages were pre-existing or caused by something other than the covered event — even when the evidence clearly says otherwise.
• Low-ball settlement offers early in treatment: Presenting a quick, inadequate settlement before you know the full extent of your damages pressures claimants to settle for far less than they deserve.
• Ignoring or delaying responses to communications: Failing to return calls, respond to emails, or acknowledge written correspondence within a reasonable time is a classic delay tactic.

Florida's Unfair Insurance Trade Practices Act (Section 626.9541) specifically prohibits many of these tactics. Violations can form the basis of a bad faith claim and expose the insurer to damages beyond the original policy limits.

Florida Deadlines Insurers Must Follow

Florida law sets specific timeframes for insurance companies handling claims. Under Section 627.70131, Florida Statutes, for residential property claims, insurers must:

• Acknowledge receipt of a claim within 14 days
• Begin an investigation within 10 working days of receiving a proof of loss statement
• Pay or deny the claim within 90 days of receiving notice, unless there is a demonstrated inability to determine coverage

For auto insurance and personal injury protection (PIP) claims, similar timelines apply under Florida's No-Fault insurance laws. When insurers miss these deadlines without justification, they may owe interest on the delayed payment and can face additional regulatory penalties.

Orlando claimants should document every interaction with their insurer — including dates, names of adjusters, and the substance of each conversation. This paper trail becomes essential evidence in a bad faith case.

What You Can Recover in a Florida Bad Faith Claim

One of the most powerful aspects of Florida bad faith law is the scope of damages available to prevailing claimants. Unlike a standard breach of contract claim — which is limited to the policy benefits owed — a successful bad faith action can yield:

• The full amount of the original claim, including any amounts the insurer wrongfully withheld
• Extracontractual damages exceeding policy limits, including consequential damages that resulted from the delay
• Attorney's fees and costs under Section 627.428, Florida Statutes
• In egregious cases involving deliberate misconduct, punitive damages

Florida courts have held that when an insurer's bad faith results in an excess judgment against the insured — meaning a verdict that exceeds policy limits — the insurer can be held responsible for the entire judgment. This creates a strong incentive for insurers to handle claims properly, and a powerful remedy for policyholders who have been harmed by delay tactics.

Steps to Take When You Suspect Bad Faith in Orlando

If you believe your insurer is dragging its feet or acting in bad faith, taking prompt action protects your rights and strengthens your potential claim.

• Keep meticulous records: Save all written communications, note the date and content of every phone call, and retain copies of every document you submit to your insurer.
• Follow up in writing: When your insurer fails to respond, send a written follow-up via certified mail. Written communications create an undeniable record of your efforts and the insurer's non-responsiveness.
• File a complaint with the Florida Department of Financial Services: The DFS investigates insurer misconduct and maintains records that can support your bad faith claim.
• Send a Civil Remedy Notice: Before filing a bad faith lawsuit, Florida law requires submitting a CRN that identifies the specific violations. An attorney should draft this notice carefully — errors can waive important rights.
• Consult a bad faith attorney early: Bad faith litigation is complex and time-sensitive. Florida's statute of limitations for bad faith claims is five years for first-party claims, but certain procedural steps must be taken before that clock becomes relevant.

Many claimants in Orlando make the mistake of waiting too long, hoping the insurer will eventually do the right thing. The reality is that delay is a strategy — and the longer you wait without pushing back, the more leverage you lose.

Florida's insurance market is among the most heavily litigated in the country. Whether you're dealing with a hurricane damage claim, an auto accident dispute, or a denied disability claim, the attorneys and adjusters on the other side of your claim have handled thousands of cases. You should have experienced legal representation too.

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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