Mold Claim Property Insurance Guide – Hollywood, Florida

Introduction: Mold Damage & Property Insurance in Hollywood, Florida

For Hollywood homeowners, year-round humidity, proximity to the Atlantic, and an active hurricane season create ideal conditions for mold growth inside homes and condominiums. According to the National Oceanic and Atmospheric Administration, South Florida averages more than 60 inches of annual rainfall, and flooding after tropical storms is common along Hollywood’s Intracoastal Waterway and low-lying neighborhoods such as North Central Hollywood and Highland Gardens. When mold follows water intrusion, property owners often turn to their insurers for help—only to find their claims delayed, underpaid, or denied altogether. This guide explains, step by step, what a policyholder in Hollywood, Florida should know and do after receiving a property insurance claim denial for mold damage. The information is grounded exclusively in Florida law, Florida Department of Financial Services (DFS) procedures, and published court opinions, and it slightly favors protecting the homeowner’s interests while remaining strictly factual.

Understanding Your Rights in Florida

The Insurance Contract

Your policy is a contract governed by Florida law. Under Fla. Stat. § 627.428, if an insurer wrongfully denies or underpays a claim and you obtain a judgment in court, the insurer may be required to pay your reasonable attorney’s fees. This fee-shifting provision is a powerful tool for homeowners because it helps level the playing field against well-funded insurers.

Prompt Investigation & Payment

Fla. Stat. § 627.70131(5)(a) requires carriers to pay or deny a property claim within 90 days after receiving notice, unless factors beyond their control prevent them from doing so. If your carrier missed that deadline without valid justification, the failure can be evidence of bad faith.

Right to Prompt Acknowledgment

The Florida Administrative Code also addresses timelines. Fla. Admin. Code R. 69O-166.024 states insurers must acknowledge communications within 14 calendar days. If you reported mold damage and your insurer went silent, reference this rule in your correspondence.

Statute of Limitations

You have limited time to file suit. For breach of a property insurance contract, Fla. Stat. § 95.11(2)(e) provides a five-year limitations period from the date of loss. Waiting too long can forfeit your rights entirely.

Right to Repairs That Meet Code

Florida’s building code has stringent mold-resistant material requirements for certain repairs. Under the Florida Building Code, contractors must follow water intrusion mitigation standards. Insurers must pay for code-compliant repairs if your policy includes Ordinance & Law coverage.

Common Reasons Property Insurance Companies Deny Claims in Florida

Exclusions for Long-Term or Repeated Seepage Many homeowners policies exclude mold resulting from repeated or continuous leakage lasting more than 14 days. Carriers often point to this exclusion even when the actual cause was sudden roof damage from a windstorm. Failure to Mitigate Under most policies, the homeowner must take “reasonable measures” to prevent further damage. Insurers may allege you waited too long to dry out affected areas. Late Notice Florida courts have held that delayed reporting can create a rebuttable presumption of prejudice against the insurer (Castillo v. People’s Trust Ins. Co., 45 Fla. L. Weekly D2542, Fla. 4th DCA 2020)). However, the homeowner can overcome this presumption with evidence that the delay did not hinder the investigation. Disputed Cause of Loss Insurers may argue that mold developed from a maintenance issue rather than a covered peril like wind-driven rain. Independent experts can help clarify causation. Policy Sub-Limits Some policies cap mold remediation at $10,000. Carriers may initially deny or drastically limit payment because of these sub-limits even when other parts of the loss—such as water damage to drywall—should be paid outside the mold cap.

Florida Legal Protections & Regulations

Applicable Statutes

• Fla. Stat. § 627.70152 (pre-suit notice requirement): Before filing a lawsuit over a residential property insurance claim denial, the insured must serve a detailed pre-suit notice on the insurer at least 10 business days before suit. The notice triggers an opportunity for the insurer to resolve the dispute and tolls the limitations period.

• Fla. Stat. § 627.7152 (Assignment of Benefits): Allows homeowners to assign insurance benefits to remediation companies, but sets strict requirements. Understanding this statute helps avoid disputes if you assigned benefits to a mold-remediation contractor.

Bad Faith Remedies

When an insurer unreasonably denies or delays a claim, you may pursue a bad-faith action under Fla. Stat. § 624.155, but only after the underlying claim is resolved. You must first file a Civil Remedy Notice (CRN) with DFS and wait 60 days for the insurer to cure the violation.

DFS Mediation & Neutral Evaluation

The Florida Department of Financial Services offers free or low-cost mediation for disputed property claims under Fla. Stat. § 627.7015. Either party can request mediation within 60 days after a denial. For sinkhole-related cases (sometimes mislabeled as mold in older structures), DFS also provides Neutral Evaluation.

Regulations on Mold Assessors & Remediators

Fla. Stat. § 468.8419 requires mold assessors and remediators to carry at least $1 million in general liability coverage. Hiring licensed professionals strengthens your proof of loss.

Steps to Take After a Denial in Florida

1. Read the Denial Letter Carefully

The insurer must cite specific policy language supporting the denial. Compare the cited exclusions with the actual facts of your loss.

2. Gather Documentation

• Photos and videos of mold growth and the original water intrusion source.

• Moisture meter readings, if available.

• Invoices and reports from licensed mold assessors/remediators.

• All correspondence with the insurer, including emails and phone logs.

3. Obtain an Independent Expert Opinion

A licensed Florida mold assessor can determine cause and scope. Their report can rebut the insurer’s findings, especially where the insurer relied on an in-house adjuster.

4. Comply with Policy Conditions

Most policies require a sworn proof of loss within 60 days of request. Failure to comply can bar recovery (State Farm Fla. Ins. Co. v. Fernandez, 211 So. 3d 113, Fla. 3d DCA 2017).

5. Request DFS Mediation

File Form DFS-I4-2007 online or call the Consumer Helpline (1-877-693-5236). Mediation usually occurs within 30 days and can lead to quick settlements without litigation costs.

6. Serve Pre-Suit Notice

Under § 627.70152, send the required notice detailing the amount in dispute, attorney’s fees, and any expert reports. The insurer has 10 business days to respond with an offer, demand appraisal, or request inspection.

7. Consider Appraisal

If your policy contains an appraisal clause, either party can invoke it for disputes over amount of loss (not coverage). Appraisal decisions are binding and can avoid protracted lawsuits.

8. File a Lawsuit (If Necessary)

If the insurer still refuses to pay, file suit in Broward County Circuit Court. Remember the five-year statute of limitations from § 95.11(2)(e).

When to Seek Legal Help in Florida

Although homeowners may navigate early claim stages alone, legal counsel becomes crucial when:

• The denial cites complex exclusions (e.g., “fungi or bacteria” endorsements with carve-outs for storm-created openings).

• The amount in dispute exceeds the policy’s mold sub-limit and there are intertwined water or structural damages.

• The insurer alleges fraud or material misrepresentation.

• You need to file a CRN for bad faith under § 624.155.

• Deadlines for proof of loss, pre-suit notice, or lawsuit filing are approaching.

Florida attorneys must be admitted to the Florida Bar under Chapter 4 of the Rules Regulating The Florida Bar. Verify any lawyer’s status on the Bar’s website.

Local Resources & Next Steps for Hollywood Homeowners

Broward County Building Code Services

Before repairs, verify whether permits are needed by contacting Broward County Building Code Services. Code-compliant repairs support your claim for full reimbursement.

Flood Zone & Elevation Information

Hollywood participates in FEMA’s Community Rating System. Check your address on the FEMA Flood Map Service Center to understand flood risk and potential policy exclusions.

DFS Consumer Helpline & Mediation

Call 1-877-MY-FL-CFO or visit the DFS Consumer Services Portal to file a complaint, request mediation, or download forms.

Keep a Claim Diary

Record every interaction with your insurer: dates, names, and summaries. Detailed logs often become critical evidence in litigation or mediation.

Stay Ahead of Mold

While pursuing your claim, hire licensed remediators to prevent health hazards. Save receipts; reasonable emergency mitigation costs are typically reimbursable even under a denial, per the “Reasonable Repairs” provision found in most HO-3 policies.

Conclusion

A mold damage claim denial can feel overwhelming, but Hollywood homeowners possess strong rights under Florida’s property insurance laws. By understanding statutory protections, meeting every procedural requirement, and leveraging resources offered by the Florida Department of Financial Services, policyholders can often overturn wrongful denials or secure fair settlements. Keep meticulous records, act within statutory deadlines, and do not hesitate to seek legal counsel when the stakes are high.

Legal Disclaimer: This guide provides general information about Florida property insurance law. It is not legal advice and does not create an attorney-client relationship. For advice about your specific situation, consult a licensed Florida attorney.

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