Insurance Lowball Offers & Bad Faith in Florida

After a serious accident or property loss, you submit your insurance claim expecting fair compensation. Instead, the adjuster calls with an offer that barely covers your medical bills, let alone your lost wages, pain, or the full cost of repairs. This is the lowball offer — a tactic insurance companies use routinely to protect their bottom line at your expense. In Florida, this practice can cross a legal line into what is known as insurance bad faith, and policyholders in Gainesville and across the state have legal remedies when it does.

What Constitutes a Lowball Offer in Florida?

A lowball offer is not simply a starting negotiation point. It becomes legally significant when an insurer knowingly tenders an amount that does not reflect the true value of a covered claim. Florida law imposes a duty of good faith on insurance companies — they must evaluate claims honestly, investigate thoroughly, and offer fair compensation without unreasonable delay.

Common signs that an offer is a bad faith lowball include:

• Failing to conduct a reasonable investigation before making an offer
• Ignoring documented medical records, repair estimates, or wage loss evidence
• Offering policy limits far below the insured's actual damages when liability is clear
• Using biased or unqualified appraisers to undervalue property damage
• Making an initial offer and then refusing to negotiate despite new evidence
• Delaying payment to pressure a claimant into accepting less

A single low offer does not automatically prove bad faith. The critical question is whether the insurer acted reasonably under the circumstances when evaluating and settling the claim.

Florida's Bad Faith Insurance Laws

Florida has two distinct legal frameworks that govern insurance bad faith claims. Understanding which applies to your situation is essential to pursuing recovery.

First-party bad faith arises under Florida Statute § 624.155, which governs disputes between a policyholder and their own insurance company. This covers situations involving homeowner's insurance, uninsured/underinsured motorist coverage, or personal injury protection (PIP) claims. Before filing a lawsuit under § 624.155, you must submit a Civil Remedy Notice (CRN) to the Florida Department of Financial Services and the insurer, giving the insurer 60 days to cure the violation. If the insurer fails to act in good faith during that window, you may proceed with a lawsuit.

Third-party bad faith applies when an insurer fails to settle a claim against its insured within policy limits, exposing the insured to an excess judgment. This cause of action arises under common law and has been shaped extensively by Florida court decisions. Insurers defending policyholders have a fiduciary-like obligation to accept reasonable settlement demands within limits when liability is reasonably clear.

In Gainesville and throughout Alachua County, plaintiffs have successfully pursued both types of claims. Florida courts have been particularly receptive to bad faith arguments where insurers ignore documented damages or use stall tactics to avoid fair payment.

Damages Available in a Florida Bad Faith Claim

When an insurer is found to have acted in bad faith, the financial consequences extend well beyond the original policy limits. Florida law allows bad faith claimants to recover:

• The full amount of damages suffered, even if they exceed policy limits
• Consequential damages caused by the insurer's delay or denial
• Attorney's fees and court costs
• Extracontractual damages for emotional distress in certain circumstances
• Potentially punitive damages if the insurer's conduct was particularly egregious

The availability of damages beyond policy limits is what makes bad faith litigation so significant. An insurer that refuses to settle a $500,000 claim for the $100,000 policy limit — when liability is clear — may ultimately be responsible for the entire judgment plus fees. This exposure creates a powerful incentive for insurers to act fairly, and when they do not, it creates meaningful leverage for injured Floridians.

How to Protect Yourself When Facing a Lowball Offer

If you receive an offer you believe is unreasonably low, your actions in the days and weeks that follow matter significantly. Do not accept any offer without fully understanding what you are releasing. Most settlement agreements include broad releases that permanently waive your right to seek additional compensation, even if your injuries worsen or new losses emerge.

Take these steps immediately:

• Document everything. Gather all medical records, bills, wage statements, repair estimates, and any written communications from the insurer.
• Get an independent appraisal. For property damage claims, hire your own licensed public adjuster or contractor to assess losses separately from the insurer's adjuster.
• Request a written explanation. Ask the insurer in writing to explain the basis for their offer, including the specific evidence they relied on.
• Preserve all deadlines. Florida's statute of limitations for bad faith claims and underlying tort claims can be as short as two years. Missing a deadline can eliminate your rights entirely.
• Consult an attorney before responding. An experienced insurance attorney can assess whether the offer is genuinely low and whether the insurer's conduct rises to the level of bad faith.

In Gainesville, the local court system and Alachua County juries have a demonstrated history of holding insurers accountable when their conduct is clearly unreasonable. Having local legal counsel who understands these dynamics can make a meaningful difference in outcomes.

When to File a Civil Remedy Notice

If you believe your first-party insurer has acted in bad faith — whether through a lowball offer, unreasonable delay, or inadequate investigation — filing a Civil Remedy Notice is the required procedural step before litigation under § 624.155. The CRN must identify the specific statutory violations, the facts supporting those violations, and the damages suffered.

The 60-day cure period is not just a formality. Insurers who receive a well-documented CRN sometimes respond by reassigning the claim, conducting a more thorough investigation, or increasing their settlement offer substantially. A properly drafted CRN signals that the claimant is serious and legally informed, which changes the negotiating dynamic.

If the insurer does not cure the violation within 60 days, you may file a civil bad faith lawsuit. Courts in Florida have awarded significant verdicts in cases where insurers received clear notice of their misconduct and still failed to respond appropriately.

Time is the most critical factor in any bad faith claim. Evidence fades, witnesses become unavailable, and statutory deadlines are unforgiving. If an insurer has made you an offer that does not reflect the full value of your claim, or if they have been delaying, denying, or mishandling your claim without justification, you have legal options under Florida law that you should explore immediately.

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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