Orlando Guide to Mold Damage & Florida Property Insurance Law

12 min read

Introduction: Why Orlando Homeowners Need to Know Their Rights

Central Florida’s humid, subtropical climate makes mold damage one of the most common—and hotly contested—property insurance claims in Orlando. Whether the mold results from roof leaks after a summer thunderstorm, a hidden plumbing failure, or prolonged post-hurricane moisture, insurers often dispute the origin, scope, or cost of remediation. Unfortunately, many policyholders learn too late that delays, underpayments, or outright denials can cost thousands of dollars in repair bills and potential health impacts. This guide provides Orlando homeowners with clear, actionable information about Florida property insurance law, mold-specific policy provisions, and the legal remedies available when your claim is mishandled.

If you believe your insurer is not treating you fairly, Louis Law Group is ready to help. Call 833-657-4812 for a free case evaluation and policy review.

Understanding Florida Property Insurance Law

Key Statutes That Protect Policyholders

• Florida Statutes Chapter 627—Regulates property insurance contracts, including coverage for water and mold damage, appraisal provisions, and prompt-pay requirements.

• Florida Statutes § 624.155—Creates a civil remedy for bad-faith claim handling, permitting insureds to seek extra-contractual damages.

• Florida Statutes § 626.9541—Defines unfair claim settlement practices by insurers, such as failing to investigate promptly or misrepresenting policy provisions.

Prompt Payment & Communication Deadlines

• 14 Days—An insurer must acknowledge and respond to communications about a claim (Fla. Stat. § 627.70131).

• 30 Days—Insurer must pay or deny any undisputed coverage amount after receiving a sworn proof of loss.

• 90 Days—The carrier must accept or deny the claim in full (or in part) and pay undisputed amounts. Failure can trigger statutory interest.

Bad Faith Protections

When an insurer’s conduct is “not in good faith”—for example, refusing to pay when liability is clear—policyholders can file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services (DFS). If the insurer fails to cure within 60 days, you may pursue additional damages, including legal fees and interest.

Common Property Insurance Disputes in Florida

Mold Damage: The Orlando Reality

Mold thrives in high humidity and warm temperatures—two constants in Orlando. Roof leaks during the June-to-November hurricane season, clogged HVAC drain lines, or even minor plumbing drips can create extensive hidden mold colonies within 24–48 hours. Because mold spores can endanger health, Florida’s Building Code often requires removal down to the studs, specialized air filtration, and post-remediation clearance testing. Carriers frequently dispute:

• Causation—Was the mold caused by sudden water loss (covered) or long-term seepage (often excluded)?

• Policy caps—Many policies limit mold remediation to $10,000 or less unless a rider was purchased.

• Scope of repair—Insurers may pay for cleaning but not replacement of porous materials like drywall or insulation.

Other Frequent Disputes

• Hurricane & windstorm damage—Roof replacement vs. patching.

• Water damage—Slab leaks, appliance failures, burst pipes.

• Fire & smoke—Disagreement over smoke odor remediation.

• Sinkhole & ground settlement—Particularly relevant to Central Florida’s karst landscape.

Florida Legal Protections & Regulations

Statutory Deadlines & Suit Limitation

Under Fla. Stat. § 95.11(2)(e), homeowners generally have five years from the date of loss to file a breach-of-contract lawsuit against an insurer. Recent amendments (2023) shortened certain hurricane claim deadlines to one year to report and 18 months to reopen, but mold claims tied to water leaks remain under the five-year umbrella. Always review your policy for contractual suit-limitation clauses.

Mediation & Appraisal

The DFS offers a state-sponsored mediation program for disputed residential property claims under $50,000. Participation is voluntary but can resolve scope or pricing issues quickly. Many policies also include an appraisal clause allowing each side to hire an appraiser; if they disagree, an umpire decides. The process is faster than litigation and binding on the amount of loss, though coverage disputes may remain.

Recent Court Rulings

• People’s Trust Ins. Co. v. Tracey (Fla. 5th DCA 2022)—Held that an insurer may require its preferred contractor under a “right to repair” endorsement, but must perform within a reasonable time or pay cash value.

• Contemporary Image, LLC v. Aspen Specialty Ins. (M.D. Fla. 2021)—Clarified the burden on insurers to prove long-term, progressive damage exclusions.

• Citizens Prop. Ins. Corp. v. Manor House, LLC (Fla. 2021)—Limited extra-contractual damages for consequential lost rental income unless bad faith is proven.

Steps to Take After a Property Insurance Dispute

Document Immediately—Take high-resolution photos and video of mold staining, moisture meters, and any water source. Keep samples of damaged materials if safe.

• Secure the Property—Florida law requires mitigating further damage. Use tarps, dehumidifiers, or professional remediation as needed.

• Gather Independent Estimates—Hire a licensed mold assessor and remediation contractor to provide detailed, line-item estimates following IICRC S520 standards.

• Review Your Policy—Check for mold sub-limits, water damage exclusions, and appraisal clauses. Obtain a certified copy from your agent if necessary.

• File a Sworn Proof of Loss—Submit within the timeframe listed in your policy (often 60 days) to preserve rights.

• Keep a Claim Diary—Log dates, names, and summaries of every conversation or email with the adjuster.

Escalate Through DFS—If the insurer stalls, file a complaint with the Florida Department of Financial Services. They will assign a consumer services representative to track the claim.

• Consider Mediation or Appraisal—Request in writing. Each side pays its own appraiser; costs are usually split for the umpire.

• Send a Civil Remedy Notice—If you suspect bad faith, submit a CRN via the DFS portal outlining violations. The carrier then has 60 days to cure.

• Consult an Attorney—Before filing suit, have a lawyer review deadlines, policy language, and potential bad-faith damages.

When to Seek Legal Help in Florida

While some straightforward claims resolve without counsel, you should strongly consider hiring an Orlando insurance attorney when:

• Your claim has exceeded the 90-day statutory decision deadline.

• The insurer invokes a mold sub-limit that does not appear in your declarations page.

• You receive a reservation of rights letter citing “long-term seepage.”

• The insurer demands an Examination Under Oath (EUO) or broad financial records.

• A lowball offer cannot cover professional remediation and reconstruction.

Florida allows contingent-fee arrangements in property damage cases, meaning you pay no attorney’s fee unless the case settles in your favor. Louis Law Group’s attorneys are licensed under The Florida Bar and focus solely on first-party property disputes, including mold claims.

Call 833-657-4812 today to discuss your options. Initial consultations are free, and we only get paid when you do.

Local Resources & Next Steps

Government & Oversight Agencies

Florida Office of Insurance Regulation (FLOIR)—Regulates insurer solvency and policy forms. Ninth Judicial Circuit Court, Orange County—Venue for most Orlando property insurance lawsuits. Florida Statutes Online—Current language of Chapters 624, 626, and 627.

• Legal Aid Society of the Orange County Bar Association—Free or low-cost assistance for income-qualified homeowners.

Climate & Weather Considerations for Orlando

Summer humidity frequently exceeds 74%, and afternoon thunderstorms drop an annual average of 52 inches of rain—perfect mold conditions. Hurricane Ian (2022) caused widespread flooding, leaving many homes damp for weeks and triggering extensive spore growth. Being proactive with dehumidification and periodic roof inspections can reduce risk, but if mold sets in, swift action is crucial.

Statutory Attorney’s Fees & Bad Faith Leverage

Under Fla. Stat. § 627.428 (for policies pre-2023) or § 627.70152 (post-2023), prevailing insureds may recover reasonable attorney’s fees. This fee-shifting encourages carriers to resolve meritorious claims and gives homeowners leverage during negotiation.

Your Next Step

If your mold damage claim has been delayed, underpaid, or denied, don’t navigate Florida’s complex insurance laws alone. Contact Louis Law Group at 833-657-4812 for a free case evaluation and policy review. We fight for Orlando homeowners—so you can focus on rebuilding, not red tape.

Disclaimer: This guide is for informational purposes only, does not create an attorney-client relationship, and should not be construed as legal advice. Consult a licensed Florida attorney for advice specific to your circumstances.