Insurance Law Guide to Property Insurance in Hollywood, Florida

Introduction: Why Hollywood, Florida Homeowners Need This Guide

Hollywood, Florida sits between Fort Lauderdale and Miami on the Atlantic coast, so its homeowners face a unique blend of coastal weather, tropical storms, and aging building stock. From hurricane-force winds off the Atlantic Ocean to sudden summer downpours that can overwhelm drainage systems along Hollywood Boulevard and North 21st Avenue, local property owners regularly confront risks that trigger insurance claims. Unfortunately, many policyholders discover that filing a property claim is only the first hurdle—collecting a fair payout can be even harder. This comprehensive guide is designed for Hollywood homeowners and small commercial property owners who want to understand their rights under Florida insurance law, avoid common pitfalls, and push back against unfair claim denials.

Written with a slight bias toward protecting policyholders, this article draws on authoritative sources such as the Florida Department of Financial Services (DFS), the Florida Statutes, and published opinions of Florida courts. You will find step-by-step instructions, local resources, and statutory citations—all tailored to the realities of South Broward County.

Understanding Your Property Insurance Rights in Florida

1. The Policy Is a Contract—You Have Enforceable Rights

Under Florida law, an insurance policy is a binding contract. If your carrier sells you coverage and collects premiums, it owes you a duty of good faith and must comply with the terms it drafted. Article I, Section 21 of the Florida Constitution guarantees access to courts, allowing you to enforce those rights if the carrier breaches the policy.

2. The Right to Receive a Copy of Your Policy

Florida Administrative Code Rule 69O-167.001 requires insurers to provide a copy of the full policy to the named insured on request. This is crucial for Hollywood residents who purchased coverage through surplus lines or admitted carriers and did not receive complete paperwork at closing.

3. The Right to Prompt Communication

Florida Statute § 627.70131 sets deadlines for insurers:

• 14 days to acknowledge your claim notice.

• 30 days to begin an investigation if you request claim documents in writing.

• 60 days to pay or deny after receiving a sworn proof of loss and all requested information.

4. The Right to Statutory Interest on Late Payments

If a carrier delays payment beyond the statutory deadline, Florida Statute § 627.70131(5)(a) requires it to pay interest from the date the claim should have been paid.

5. The Right to Civil Remedy for Bad Faith

Florida Statute § 624.155 allows policyholders to file a Civil Remedy Notice (CRN) with DFS if the insurer acts in bad faith. This is a prerequisite to filing a bad-faith lawsuit seeking extra-contractual damages, such as the costs of alternative housing along South Ocean Drive or business interruption losses on Hollywood Boulevard.

Common Reasons Property Insurance Companies Deny Claims in Florida

Recognizing recurring denial tactics helps you prepare a stronger initial claim file. According to annual complaint data published by the Florida DFS Consumer Services Division, the following are the top denial reasons:

1. Late Notice of Loss

Carriers often point to the “prompt notice” clause in most Florida HO-3 and DP-3 policies. Even though Florida courts generally look at prejudice to the insurer, late reporting remains a common pitfall. For hurricane or windstorm events, Fla. Stat. § 627.70132 now limits initial notice to 1 year from the date of loss (18 months for supplemental claims) for policies issued or renewed after January 1, 2023.

2. Alleged “Wear and Tear” vs. Sudden Damage

Roof leaks are frequent in Hollywood’s older ranch homes west of I-95. Insurers may label damage as “long-term deterioration” rather than a covered peril. Documenting fresh, sudden openings—consistent with wind uplift—using date-stamped photos can rebut this argument.

3. Failure to Mitigate

Florida policies obligate you to take reasonable steps to prevent further damage, such as tarping a roof. Denials often cite mold growth or continued water intrusion as evidence you did not mitigate. Keep receipts for fans, dehumidifiers, or emergency services (e.g., SERVPRO of Hollywood Hallandale Aventura) to prove compliance.

4. Policy Exclusions and Anti-Concurrent Causation

Many Florida policies exclude flooding, earth movement, or seepage. After Tropical Storm Eta, carriers argued that storm surge (excluded) rather than wind (covered) caused damage in East Hollywood. The anti-concurrent causation clause gives insurers leverage, but Florida Supreme Court decisions (e.g., Jones v. Federated National) instruct courts to interpret ambiguous exclusions in favor of coverage.

5. Alleged Material Misrepresentation

Insurers may void a claim if they believe you intentionally concealed facts, such as pre-existing damage from a prior hurricane (like Irma in 2017). Honest documentation and timely disclosure of all prior repairs protect you against this defense.

Florida Legal Protections & Insurance Regulations

Statute of Limitations for Property Insurance Lawsuits

The general statute of limitations for breach of an insurance contract in Florida is five years from the date the insurer breaches, per Fla. Stat. § 95.11(2)(b). However:

• First notice of loss for hurricane or windstorm events must be within 1 year (initial) and 18 months (supplemental) as stated above.

• Sinkhole coverage claims must follow separate deadlines under Fla. Stat. § 627.706.

Assignment of Benefits (AOB) Reform

Florida’s AOB reforms in Fla. Stat. § 627.7152 (2019 & 2023 amendments) limit contractors’ ability to sue your insurer directly. You still may assign benefits but must follow strict notice and cancellation provisions. Hollywood homeowners often sign AOBs to get emergency water mitigation; you must read these agreements carefully because any dispute may jeopardize your claim value.

Homeowner Bill of Rights

Florida Statute § 627.4172 requires insurers to provide a policyholder Bill of Rights after receiving a claim. It outlines your right to:

• Inspect the property accompanied by an adjuster.

• Receive confirmation of coverage within 30 days.

• Get a detailed explanation of repairs if the insurer offers a preferred contractor.

Insurance Appraisal and Mediation Programs

Florida Administrative Code Rule 69J-166.031 authorizes the DFS State-Sponsored Mediation Program. Either party can request mediation for residential property claims up to $50,000. For claims above that threshold, the policy’s appraisal clause may provide an alternative. An appraisal award is binding absent fraud or collusion, but it does not address bad faith damages.

Attorney Fees and Proposals for Settlement

For policies issued before December 16, 2022, Florida Statute § 627.428 allowed a one-way attorney-fee shift if the insured prevailed. Senate Bill 2-A repealed 627.428 for property cases filed after January 1, 2023, replacing it with a discretionary fee statute (§ 57.105). Nonetheless, contracts signed earlier may still trigger fee shifting, offering homeowners crucial leverage.

Steps to Take After a Property Insurance Claim Denial in Florida

1. Review the Denial Letter Line by Line

Insurers must state specific policy language they relied upon when denying coverage (§ 627.70131(7)). Compare each cited exclusion to your policy wording. Look for undefined terms or conflicting provisions.

2. Gather Independent Evidence

• Obtain a licensed Florida public adjuster’s estimate (license prefix “P”). In Hollywood, many adjusters are headquartered near Pembroke Road and I-95.

• Hire an engineer or roofer experienced with Florida Building Code (2020 edition). Their causation report can refute an insurer’s “wear and tear” argument.

• Secure maintenance records—HVAC tune-ups, roof repairs, or previous inspections demonstrate proactive upkeep.

3. File a Detailed Sworn Proof of Loss

Most policies give you 60 days after the insurer’s request. Provide supporting invoices, photos, and expert reports. Send via certified mail to preserve proof of delivery.

4. Utilize the Florida DFS Mediation Program

Submit Form DFS-I0-510. The state assigns a neutral mediator and schedules a session at the Broward Regional Service Office in Fort Lauderdale or virtually. Insurers must pay the mediator’s fee for residential claims.

5. Serve a Civil Remedy Notice (CRN) if Bad Faith Is Suspected

File online at the DFS Civil Remedy Notice System. The insurer has 60 days to cure the violation (usually by paying all damages). Failure to cure preserves your right to extra-contractual damages.

6. Consider Appraisal—But Read the Clause

An appraisal can resolve scope or pricing disputes quickly. Ensure the clause is binding only on price, not coverage. Retain an appraiser familiar with Broward County materials pricing.

7. File Suit Within Statutory Deadlines

Consult a Florida attorney before litigation to comply with pre-suit notice requirements now codified in Fla. Stat. § 627.70152 (2023). A 10-day notice and a detailed estimate must be served on the insurer.

When to Seek Legal Help in Florida

You can handle some claim disputes on your own, but several scenarios justify immediate counsel from a licensed Florida attorney:

• Complex Denial Reasons: Allegations of fraud, misrepresentation, or coverage rescission can expose you to counterclaims.

• Significant Damage: Claims exceeding $50,000, common in Hollywood luxury condos along Ocean Drive, involve technical coverage issues.

• Bad Faith Indicators: Repeated delays, lowball offers, or request for unnecessary examinations under oath (EUOs) signal possible statutory violations.

• Upcoming Deadlines: If the five-year breach deadline or the one-year hurricane notice deadline looms, counsel can file suit to preserve rights.

Florida attorneys must be members in good standing with The Florida Bar under Rule 1-3.2. Be sure to verify any lawyer’s license at the Bar’s online portal.

Local Resources & Next Steps

Government & Non-Profit Resources

Florida Department of Financial Services (Consumer Services) – File complaints or request mediation. Broward County Clerk of Courts – Docket searches for pending insurance litigation. Florida Building Commission – Access building code details used in roof or structural disputes.

Hollywood, Florida Specific Contacts

• City of Hollywood Building Division: 2600 Hollywood Blvd.; obtain permits and inspection records to demonstrate code compliance.

• Hollywood Code Compliance: 954-921-3061 – Verify if prior damage led to violations cited by the insurer.

• Local Public Adjuster Associations: Florida Association of Public Insurance Adjusters (FAPIA) maintains a directory of adjusters based in South Florida.

Next Steps Checklist

• Secure a certified copy of your full policy.

• Request the claim file from your carrier.

• Retain independent experts (adjuster, roofer, engineer).

• File a CRN or DFS mediation request if negotiations stall.

• Consult a Florida-licensed attorney for lawsuit viability.

Legal Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Laws and regulations change, and each claim presents unique facts. Always consult a qualified, licensed Florida attorney about your specific situation.

If your property insurance claim was denied, call Louis Law Group at 833-657-4812 for a free case evaluation and policy review.