Mold Claim Denials: Property Insurance Guide – Fort Lauderdale

Introduction: Why Mold Damage Claims Matter in Fort Lauderdale

High humidity, year-round warm temperatures, and heavy summer storms make Fort Lauderdale, Florida especially susceptible to mold growth after a water event. Broward County averaged more than 60 inches of rain in 2023, according to the National Weather Service, and hurricanes such as Irma (2017) and Ian (2022) demonstrate how quickly water intrusion can occur. Unfortunately, many Fort Lauderdale homeowners discover that filing a mold damage claim is only half the battle; policyholders frequently confront a property insurance claim denial. This guide explains how Florida insurance law protects you, why insurers deny mold claims, and what specific steps you can take in Fort Lauderdale to appeal or dispute an adverse decision.

This article slightly favors homeowner rights while remaining evidence-based, citing only authoritative sources such as the Florida Statutes, Florida Administrative Code, and the Florida Department of Financial Services (DFS). Whether your home is in Victoria Park, Coral Ridge, or central Fort Lauderdale, the information below can help you understand the process and assert your rights.

Understanding Your Rights in Florida

1. Your Policy Is a Contract Governed by Florida Law

Under Florida Statutes Chapter 627, a homeowners policy is a legally binding contract. The insurer owes you duties of good faith and fair dealing (see Fla. Stat. § 624.155) and must adjust claims promptly (Fla. Stat. § 627.70131). If the insurer fails to comply, you may recover damages, interest, and in certain situations, attorney fees under Fla. Stat. § 627.428.

2. Timely Investigation and Communication

• 14 days: Insurers must acknowledge receipt of the claim in writing within 14 calendar days (Fla. Stat. § 627.70131(1)).

• 30 days: They must begin an investigation within 30 days after notification of the loss.

• 90 days: They have 90 days to pay or deny the claim in whole or in part (Fla. Stat. § 627.70131(5)(a)).

If an insurer exceeds these deadlines without a valid reason, policyholders can file a complaint with the Florida DFS.

3. Right to Attorney Fees When You Prevail

Section 627.428 Florida Statutes entitles a policyholder who obtains a judgment or decree against an insurer to reasonable attorney fees. This shifts the litigation cost burden away from homeowners and discourages baseless denials.

4. Statute of Limitations

As of 2023, Florida’s statute of limitations for a property insurance lawsuit is two years from the date of loss (§ 95.11(14), Fla. Stat.). Missing this deadline can bar recovery, so act quickly.

5. Appraisal and Mediation Rights

Most Florida policies contain an appraisal clause to resolve disputes about the amount of loss. Additionally, homeowners may request free or low-cost mediation through the DFS Residential Property Mediation Program under Rule 69J-166.031, Florida Administrative Code.

Common Reasons Property Insurance Companies Deny Mold Claims in Florida

Exclusion or Cap on Mold Coverage Many standard policies exclude mold unless the mold results from a covered peril such as a sudden pipe burst. Even when covered, some policies cap mold remediation at $10,000 or less. Long-Term Neglect Allegations Insurers often argue that the mold was caused by repeated seepage or maintenance neglect. Florida courts, including Citizens Prop. Ins. Corp. v. Munoz, 158 So. 3d 671 (Fla. 2d DCA 2014), have upheld exclusions for constant or repeated seepage exceeding 14 days. Late Notice of Claim Section 627.70132 requires notice of a hurricane or windstorm claim within one year; for non-hurricane claims, insurers may cite “prejudice” when the homeowner waits months to report damage. Pre-Existing Damage Adjusters may assert the mold existed before the policy inception, shifting responsibility to the prior owner or a different insurer. Disputed Causation Was the water intrusion caused by roof wear and tear (often excluded) or Hurricane Irma’s winds (covered)? This causation debate drives many claim denials in Fort Lauderdale.

Florida Legal Protections & Regulations

Key Florida Statutes

• Fla. Stat. § 627.7011 – Requires insurers to offer replacement cost coverage.

• Fla. Stat. § 627.70131 – Establishes claims handling deadlines and interest penalties for late payments.

• Fla. Stat. § 624.155 – Creates a civil remedy for bad-faith claim handling.

Bad-Faith Claims

If the insurer denies, delays, or underpays in violation of § 624.155, you must file a Civil Remedy Notice (CRN) with the DFS, giving the insurer 60 days to cure. Failure to cure may expose the insurer to extra-contractual damages beyond policy limits (see Time Ins. Co. v. Burger, 712 So. 2d 389 (Fla. 1998)).

Building Code Upgrades in Broward County

Fort Lauderdale follows the Florida Building Code (2023) with Broward County amendments that address water-resistant materials and ventilation. If code upgrades are required during repairs, § 627.7011(1)(a) obligates replacement cost policies to cover them, subject to policy language.

Assignment of Benefits (AOB) Reform

Florida’s 2023 reform (HB 799) further restricts AOB, meaning contractors can no longer accept full assignment of a property insurance claim without the insurer’s consent. Homeowners must sign a limited work authorization instead.

Steps to Take After a Denial in Florida

Read the Denial Letter Carefully Identify the policy provision the insurer relied on (exclusion, late notice, etc.). Florida Administrative Code Rule 69O-166.024 requires insurers to cite specific policy language. Request the Claim File in Writing Under Florida’s Claims Administration Statute, you may request your claim file and adjuster notes. Send a certified letter referencing Fla. Stat. § 627.428. Gather Evidence Take dated photos, obtain moisture meter readings, and preserve repair invoices. Independent labs can provide spore count testing—useful if the insurer disputes the extent of mold. Secure an Independent Estimate Licensed mold assessors in Florida must hold a Mold Assessor license under Fla. Stat. § 468.84. Their reports often refute low insurer estimates. File a DFS Consumer Complaint The Florida DFS Division of Consumer Services offers an online portal and phone intake. Once filed, the insurer has 20 days to respond to DFS. Many disputes resolve here without litigation. Mediation or Appraisal Request DFS mediation (free for claims ≤ $50,000) or invoke the policy’s appraisal clause. Each side selects an appraiser; an umpire issues a binding award if the appraisers disagree. Consult a Florida Attorney If the above steps fail, speak with a licensed Florida attorney experienced in property insurance litigation.

When to Seek Legal Help in Florida

Indicators You Need Counsel

• The denial cites complex exclusions or ambiguous policy language.

• Repairs exceed policy caps or the insurer refuses code upgrades.

• You suspect bad faith (e.g., adjuster misrepresentations, unreasonable delays).

• The two-year statute of limitations is approaching.

Choosing a Fort Lauderdale-Based Attorney

Florida attorneys must be licensed by the Florida Bar under Chapter 4 Rules Regulating the Florida Bar. Verify licenses at The Florida Bar Member Directory. Prefer counsel with Broward County courtroom experience and a track record in mold or water damage claims.

Local Resources & Next Steps

Florida DFS Consumer Services – File complaints, ask questions, or request mediation. Broward County Permitting & Licensing – Obtain inspection records showing code compliance. Florida Law Help – Low-income legal assistance referral.

After gathering your evidence, consider drafting a concise demand letter referencing Fla. Stat. § 624.155 and attaching your independent mold assessment. This often triggers serious reconsideration by the insurer.

Legal Disclaimer

The information provided is for educational purposes only and does not constitute legal advice. Consult a licensed Florida attorney for advice regarding your specific matter.

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