Insurance Lawyer Guide: Property Insurance in Hollywood, Florida

Introduction: Why Hollywood, Florida Homeowners Need This Guide

Nestled between Miami and Fort Lauderdale, Hollywood, Florida is famous for its seven-mile Broadwalk, historic districts, and proximity to the Atlantic Ocean. Yet that enviable location also puts local homes and condos in the path of hurricanes, tropical storms, and sudden summer downpours. According to the Florida Office of Insurance Regulation, Broward County—where Hollywood sits—records thousands of property insurance claims every year, especially after hurricanes like Irma (2017) and Ian (2022). When those claims are underpaid or flatly denied, homeowners in zip codes 33019, 33020, 33021, 33024, and 33026 are left facing roof leaks, mold, and structural damage without the money they need to repair their property.

This comprehensive guide is written with a homeowner-friendly perspective, empowering you to understand Florida-specific insurance laws, common insurer tactics, and practical steps to challenge a denial. Whether you own a historic bungalow in Hollywood Lakes, a beachfront condo on Ocean Drive, or a single-family home west of I-95, the information below will help you stand up for your rights under Florida law.

Understanding Your Property Insurance Rights in Florida

Key Protections in Your Homeowner’s Policy

• Replacement Cost Coverage: Most standard Florida HO-3 policies promise payment at replacement cost, not just depreciated value.

• Additional Living Expenses (ALE): If storm damage makes your home temporarily uninhabitable, the insurer must reimburse reasonable hotel and food costs up to policy limits.

• Loss Assessment: Condo owners in Hollywood Beach may claim up to $2,000 (or higher, if endorsed) to cover special assessments imposed by the association after a covered peril.

Florida Statutory Rights

Florida Statutes Chapter 627 gives policyholders several substantive rights:

• Prompt Acknowledgment: Under Section 627.70131(1)(a), the insurer must acknowledge your claim in writing within 14 calendar days.

• Timely Payment: Section 627.70131(5)(a) requires insurers to pay or deny a residential property claim within 60 days after receipt of proof-of-loss—unless factors beyond their control make it impossible.

• Reasonable Explanation: Florida Administrative Code Rule 69O-166.024 compels carriers to provide a written, fact-based explanation for any denial or partial payment.

• Right to Independent Appraisal: Many Hollywood homeowners’ policies contain an appraisal clause that allows each side to pick an appraiser and, if necessary, an umpire to resolve value disputes.

Statute of Limitations

Under Section 95.11(2)(e), a lawsuit for breach of a property insurance contract must be filed within five years from the date of loss. For hurricane or windstorm claims, Section 627.70132 sets a separate notice deadline: policyholders must give written notice to the insurer within three years after the storm first made landfall in Florida.

Common Reasons Property Insurance Companies Deny Claims in Florida

While every loss is unique, insurers often rely on repeat explanations—some legitimate, others questionable—to avoid paying full benefits. Hollywood homeowners frequently see these justifications:

• Late Notice: Carriers argue that you failed to report damage "promptly," even if you contacted them within days of discovering hidden roof leaks.

• Wear and Tear vs. Sudden Peril: Insurers label long-term water intrusion as "maintenance" instead of hurricane-caused damage.

• Pre-Existing Damage: Older houses east of U.S. 1 may be blamed for cracks or spalling that pre-dated a storm, shifting responsibility to the homeowner.

• Excluded Perils: Standard policies exclude flood; claims arising from the Intracoastal Waterway often spark disputes over whether wind or storm surge caused the primary damage.

• Failure to Mitigate: Section 627.701(4)(a) requires policyholders to take reasonable steps to protect property after a loss. Carriers sometimes misuse this clause to deny coverage when, in reality, the homeowner acted diligently.

Remember: Florida law requires an insurer to prove an exclusion applies. Never accept a cursory denial letter that merely lists policy sections without evidence.

Florida Legal Protections & Insurance Regulations

The Homeowner Claims Bill of Rights

Enacted in 2014, the Florida Homeowner Claims Bill of Rights (Section 627.7142) mandates that insurers send the Bill of Rights within 14 days of receiving any residential property claim. Highlights include:

• Free DFS mediation availability.

• Contact information for the Florida Department of Financial Services Division of Consumer Services.

• A clear outline of deadlines for communication and payment.

Florida Department of Financial Services (DFS) Mediation

DFS oversees a no-cost mediation program under Section 627.7015 for disputed property claims (excluding flood). Mediation sessions are held virtually or at Broward County facilities in Plantation, a 20-minute drive from downtown Hollywood. Insurers must pay the filing fee; homeowners simply need to submit the DFS-I0-510 form.

Assignment of Benefits (AOB) Reform

Recent legislation (Chapter 2023-172, Laws of Florida) curbed abuses but still permits policyholders to assign benefits to licensed contractors. Review any AOB carefully—Hollywood repair companies must comply with strict notice and cancellation rules.

Attorney Fees & Bad Faith

Before 2022, Section 627.428 let prevailing insureds recover fees, encouraging fair settlements. Senate Bill 2-A (2022) repealed that statute for new policies, but claims filed before December 16, 2022 may still recover fees. Further, Section 624.155 allows civil actions for insurer bad faith after a required Civil Remedy Notice and 60-day cure period.

Steps to Take After a Property Insurance Claim Denial in Florida

1. Review the Denial Letter Line by Line

Look for references to inspection reports, policy sections, and photographs. Florida law obligates the carrier to cite specific facts supporting its decision.

2. Request a Certified Copy of Your Policy

Under Section 627.4137, an insurer must provide policy copies within 30 days of a written request. Compare exclusions to the cited denial paragraphs.

3. Document Everything

• Take time-stamped photos and videos of damaged drywall, flooring, and roof tiles.

• Keep receipts for tarps or temporary repairs (these can be reimbursed as mitigation costs).

• Maintain a communication log: dates, times, representative names, and summaries.

4. Obtain an Independent Damage Estimate

Hollywood offers many licensed public adjusters. Florida Statute 626.854 limits their fees to 10% of hurricane claims if settled within the first year, and 20% thereafter. Make sure the adjuster is properly bonded and licensed.

5. Invoke Appraisal or DFS Mediation

If your policy has an appraisal clause, send a certified letter naming your appraiser. Alternatively, file a request with DFS for free mediation—deadlines vary, so act quickly.

6. Preserve Your Legal Deadlines

Mark the five-year suit limitation on your calendar. In multi-unit dwellings, each condo owner’s claim counts separately, so don’t rely on the association’s timeline.

When to Seek Legal Help in Florida

While many straightforward disputes settle through appraisal or mediation, complex cases—such as extensive mold, structural collapse, or allegations of fraud—often require a seasoned Florida attorney experienced in property insurance litigation. You should contact counsel promptly when:

• The insurer accuses you of material misrepresentation or fraud.

• Repairs exceed policy limits and you need guidance on excess coverage or umbrella policies.

• You receive a "reservation of rights" letter.

• The carrier refuses to pay ALE, forcing you to stay with relatives or accrue hotel bills.

Florida Bar Rule 4-7.10 states that only lawyers licensed by the Florida Supreme Court may give legal advice on Florida insurance law. Verify any lawyer’s status via the Florida Bar Member Search.

Local Resources & Next Steps for Hollywood Homeowners

Government & Consumer Agencies

Florida Department of Financial Services – Consumer Services (DFS Helpline: 1-877-693-5236)

• Broward County Permitting, Licensing & Consumer Protection Division (954-765-4400) for contractor complaints.

• City of Hollywood Building Division (954-921-3335) for post-storm building inspections and permits.

Disaster Assistance & Housing

After federally declared disasters, apply for FEMA Individual Assistance at DisasterAssistance.gov.

• Broward County Emergency Management posts shelter locations; follow @ReadyBroward on social media.

Non-Profit Help

• Legal Aid Service of Broward County (954-765-8950) offers free counsel to qualifying homeowners on insurance matters.

• The United Way of Broward County’s 211 Helpline links residents to emergency grants for temporary housing.

Next Steps: Gather your documents, calculate all out-of-pocket expenses, and schedule a consultation with a qualified attorney before critical deadlines pass.

Legal Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Laws and regulations change; consult a licensed Florida attorney for advice on 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.