Longwood FL Property Insurance: Bad Faith Attorney Guide

Introduction: Why This Guide Matters to Longwood Homeowners

Longwood, Florida sits in the heart of Seminole County—close enough to the Atlantic coast to feel the sting of hurricanes, but far enough inland to see frequent thunderstorm downpours, sinkhole activity, and the occasional tornado spawned by tropical systems. From the historic homes along West Church Avenue to newer subdivisions off State Road 434, every roof in Longwood is vulnerable to Florida’s extreme weather. After a storm or plumbing leak, you expect your property insurer to handle your claim promptly and fairly. Yet many residents discover their claims are delayed, underpaid, or denied outright. This comprehensive guide—geared specifically toward Longwood homeowners—explains your rights under Florida insurance law, the tactics insurers use, and when to involve a bad faith insurance attorney.

The information below draws exclusively from authoritative Florida sources such as the Florida Statutes, the Florida Department of Financial Services (DFS), and published opinions from Florida’s courts. It provides a slight but deliberate bias in favor of policyholders, because homeowners often face a steep power imbalance when negotiating with multi-billion-dollar insurance carriers. By the end, you will understand how to respond to a property insurance claim denial in Longwood, Florida, protect yourself from unfair practices, and take practical next steps—whether on your own or with experienced legal counsel.

Understanding Your Property Insurance Rights in Florida

1. The Contractual Right to Payment

Your homeowners policy is a contract. Under Florida contract law (section 95.11(2)(b), Florida Statutes), you normally have five years from the date of breach—usually the date of underpayment or denial—to file a lawsuit for unpaid benefits. This is separate from the three-year notice deadline for hurricane and windstorm losses found in section 627.70132.

2. The Florida Homeowner Claims Bill of Rights

Enacted in 2014, section 627.7142 requires insurers to provide a copy of the Homeowner Claims Bill of Rights within 14 days of receiving a residential property claim. Key protections include:

• Communication deadlines—insurers must acknowledge your claim within 14 days and pay or deny within 90 days (section 627.70131).

• Prohibition against using mortgage proceeds to pressure you into using a preferred vendor.

• Your right to participate in neutral evaluation for sinkhole disputes under section 627.7074.

3. Protection from Unfair Claim Settlement Practices

Section 626.9541(1)(i) defines unfair practices, such as misrepresenting policy provisions, failing to conduct a reasonable investigation, or making a low-ball offer without justification. Repeated violations can constitute bad faith under section 624.155, giving you the right to additional damages—including emotional distress—if you prevail in court.

4. The Right to Hire a Florida Attorney on Contingency

Florida Bar Rule 4-1.5(f)(4)(B) allows contingency fee agreements in property insurance cases, typically capped at 33⅓% to 40% depending on litigation stage. Attorneys must be members in good standing with The Florida Bar lawyer directory.

Common Reasons Property Insurance Companies Deny Claims in Florida

Insurers often rely on policy exclusions or alleged non-compliance with post-loss duties. Longwood residents report the following top denial reasons:

• Wear and Tear Exclusions – Florida policies exclude gradual deterioration. For example, if your 20-year-old roof leaks after a storm, the carrier may label the damage “pre-existing.”

• Late Notice – Under section 627.70132’s 3-year notice rule for hurricane losses, claims filed after the deadline are routinely denied.

• Water Damage over 14 Days – Most HO-3 policies limit coverage for “constant or repeated seepage” lasting more than 14 days.

• Failure to Mitigate – If you do not tarp a roof or dry out a leak promptly, the insurer may argue you failed to protect the property as required by the policy.

• Occupancy Misrepresentation – Vacant or tenant-occupied homes face higher scrutiny. Carriers sometimes accuse owners of misrepresenting occupancy to void coverage.

Many of these reasons are legitimate under the policy; however, insurers sometimes stretch exclusions to avoid paying. In Vazquez v. Citizens Prop. Ins. Corp., 304 So. 3d 1280 (Fla. 3d DCA 2020), the court held that Citizens wrongfully denied payment for ensuing damage even though the initial plumbing failure was excluded. The decision underscores why precise policy interpretation matters.

Florida Legal Protections & Insurance Regulations

Statutory Timelines Insurers Must Follow

• 14 Days – Acknowledge receipt of the claim (section 627.70131(1)(a)).

• 30 Days – Begin investigation and notify you of any additional information needed.

• 90 Days – Pay undisputed amount or provide written denial. Failure to meet the 90-day rule creates a presumption of delay (Talat v. Aetna, 753 So. 2d 1278, Fla. 2000).

Bad Faith Remedies Under Section 624.155

Before filing a bad faith lawsuit, you must submit a Civil Remedy Notice (CRN) to the DFS and the insurer, giving the carrier 60 days to cure the violation. If the insurer fails, courts may award:

• Contract damages (the amount owed under the policy).

• Consequential damages (e.g., hotel costs, mold remediation).

• Punitive damages if the violation was willful.

• Statutory interest under section 55.03.

For instructions, visit the DFS Civil Remedy Notice filing portal.

Mediation & Appraisal Options

The DFS runs a free** Residential Property Mediation Program** (section 627.7015). Either party may request mediation within 90 days of a denial. If the dispute is solely about price, most policies include an appraisal clause—an alternative dispute resolution mechanism where each side selects an appraiser and a neutral umpire decides the amount.

Recent Legislative Changes Affecting Policyholders

• SB 76 (2021) – Shortened the deadline to file a supplemental or reopened claim to 2 years (was 3).

• HB 837 (2023) – Modified Florida’s comparative negligence framework and shortened the general negligence statute of limitations, although contract actions remain 5 years.

Understanding these evolving laws is essential when preparing any property insurance claim in Longwood.

Steps to Take After a Property Insurance Claim Denial in Florida

• Read the Denial Letter Carefully Under Florida Administrative Code 69O-166.031, the denial must state the specific policy language relied on. Compare the cited exclusions to your full policy—not just the declarations page.

• Request the Claim File Section 627.4137 gives policyholders the right to a certified copy of the policy and all claim-related documents. Send a written request via certified mail.

• Document All Damage Take date-stamped photos, videos, and keep receipts for repairs or temporary housing. Florida law places the burden of proof on you to establish the loss.

• Consider a Public Adjuster Licensed under Chapter 626 Part VI, a public adjuster can re-estimate the loss. Fees are capped at 10% of recovered proceeds for declared emergencies and 20% otherwise.

File a Written Complaint with DFS The DFS Division of Consumer Services opens an investigation and often forces insurers to re-evaluate claims without you going to court.

• Explore Mediation or Appraisal If the disagreement is about price rather than coverage, mediation or appraisal can be faster and cheaper than litigation.

• Send a Civil Remedy Notice If bad faith is suspected, draft a CRN under section 624.155. Describe the facts and statutes violated. Many carriers cure within 60 days to avoid extra-contractual liability.

• File Suit Before Time Runs Out Remember the 5-year statute of limitations for breach of contract (95.11(2)(b)) and 2-year deadline for supplemental claims (SB 76). Missing these windows can bar your claim forever.

When to Seek Legal Help in Florida

Signs You May Need a Bad Faith Insurance Attorney

• The insurer stops communicating despite multiple follow-ups.

• You receive a low offer that will not cover necessary repairs.

• The carrier demands a sworn proof of loss with an unreasonably short deadline or requests repetitive examinations under oath (EUOs).

• You suspect the adjuster ignored obvious damage or relied on engineers with insurer-biased reputations.

Choosing the Right Florida Attorney

Verify the lawyer’s license through The Florida Bar and confirm experience in first-party property litigation. Ask about prior jury verdicts in Seminole County and whether the firm advances litigation costs (experts, filing fees, depositions) so you pay nothing unless you win. Contingency agreements must comply with Rule 4-1.5 and be in writing.

Costs & Fee Shifting

Florida once had a fee-shifting statute (section 627.428) that required insurers to pay your attorney fees if you prevailed. Although amended in 2022 to limit automatic fee recovery, courts may still award fees where bad faith is proven. Discuss fee scenarios with your counsel.

Local Resources & Next Steps for Longwood Homeowners

Government Offices

• Seminole County Clerk of Court – 301 N. Park Ave., Sanford; file lawsuits or retrieve case dockets.

• Longwood Building Division – 175 W. Warren Ave.; obtain permits and inspection reports documenting damage.

Central Florida Disaster Recovery Center – Opens after major hurricanes; check Florida Division of Emergency Management for locations.

Consumer Advocacy

Florida CFO Consumer Helpline – 1-877-693-5236 for insurance questions.

• Non-profit United Policyholders’ "Roadmap to Recovery" webinars tailored to Florida storms.

Action Checklist

• Download a certified copy of your policy and the insurer’s denial letter.

• Collect photographs, repair estimates, and any correspondence with the adjuster.

• Call DFS Consumer Services to open a complaint.

• Schedule a free consultation with a reputable Florida attorney.

Legal Disclaimer: This guide is for informational purposes only and does not constitute legal advice. Laws change, and your situation may differ. Always consult a licensed Florida attorney before taking action.

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