Property Insurance Claim Denial Guide – Starke, Florida

Introduction: Why Claim Denials Matter in Starke, Florida

Between Starke’s humid summers, the proximity to the Santa Fe Swamp, and periodic tropical storm systems that cross Bradford County, local homeowners face a higher-than-average risk of mold damage inside walls, attics, and crawl spaces. When a burst pipe, roof leak, or flood leaves moisture behind, spores can spread quickly. Unfortunately, insurance carriers frequently deny or underpay mold-related claims, leaving policyholders to shoulder remediation costs that can reach tens of thousands of dollars. This guide explains how Florida insurance law protects Starke homeowners, what to do after a denial, and when to involve a licensed Florida attorney.

Understanding Your Rights in Florida

Your Policy Is a Contract

A homeowners policy issued in Florida is a legally binding contract. Under Florida Statutes §95.11(2)(e), you generally have five years from the date the insurer breaches that contract (by denying or underpaying) to file a lawsuit. Knowing this deadline is critical because missing it can permanently bar recovery.

Prompt Payment Requirements

Florida Statutes §627.70131 requires insurers to acknowledge communications within 14 days, begin an investigation within 10 days after proof-of-loss, and pay undisputed amounts within 60 days after receiving a “sworn proof.” If your carrier drags out the process, you can cite this statute in correspondence or a complaint filed with the Florida Department of Financial Services Consumer Assistance Division.

Bad-Faith Protections

When an insurer fails to settle claims in good faith, it may violate §624.155 and §626.9541 (Unfair Claim Settlement Practices). Before suing for bad faith, policyholders must file a Civil Remedy Notice (CRN) with DFS and give the carrier 60 days to cure the violation.

Common Reasons Insurers Deny Claims in Florida

1. Mold Exclusions or Sublimits

Many Florida policies contain mold exclusions or limit coverage to $10,000 or less. Insurers often issue blanket denials citing these provisions even when the source of water damage—a covered peril—caused the mold. Florida courts have held that if the initial peril is covered, ensuing mold damage may also be covered unless explicitly excluded (American Home Assurance Co. v. Sebo, 208 So.3d 694, Fla. 2016).

2. Late Notice

Carriers frequently argue that policyholders failed to provide “prompt notice.” While timely notice is required, Florida law shifts the burden to the insurer to show prejudice from the delay (Klausner v. Fire & Cas. Ins. Co., 703 So.2d 361, Fla. 3d DCA 1997).

3. Pre-Existing or Gradual Damage

Insurers may claim the mold existed before the policy period or resulted from gradual neglect. Thorough maintenance records and photographs dated before the loss can rebut this argument.

4. Misrepresentation

If the insurer believes you overstated damage or concealed information, it may deny. Provide honest, detailed documentation to avoid this pitfall.

Florida Legal Protections & Regulations

Policyholder Bill of Rights

Adopted in 2014, Florida’s Policyholder Bill of Rights (codified in part under §627.7142) emphasizes transparency, including the right to receive a free copy of your policy and to participate in DFS mediation.

Mediation Program – §627.7015

For residential property claims—other than sinkhole—DFS offers a free, non-binding mediation program. Insurers must give written notice of this option within five days of the claim decision. Many disputes settle at mediation, saving time and litigation costs.

Appraisal Clause

Most Florida policies include an appraisal provision that allows each party to select an independent appraiser, with a third “umpire” deciding if the appraisers disagree. Appraisal resolves amount of loss disputes but not coverage questions.

Licensing of Florida Attorneys & Public Adjusters

Only members of the Florida Bar may provide legal advice or represent you in court. Public adjusters must be licensed by DFS under §626.854 and cannot charge more than 20% of reopened or supplemental claims.

Steps to Take After a Denial in Florida

Review the Denial Letter Carefully Identify every policy provision the carrier cites. Request a Certified Copy of the Policy Under §627.4137, you have the right to receive one upon request. Gather Evidence

• Photos/videos of mold growth and water source

• Moisture meter readings

• Remediation invoices

• Expert reports from licensed mold assessors (Chapter 468 Part XVI)

File a Notice of Intent (NOI) to Litigate Effective 2021, §627.70152 requires pre-suit notice with an itemized estimate and supporting documents. Consider DFS Mediation File Form DFS-I4-1793 online or call 877-693-5236.

• Consult a Florida Attorney

When to Seek Legal Help in Florida

If the disputed amount exceeds the mold sublimit, the carrier ignores statutory deadlines, or you receive a “coverage denial,” consult a Florida attorney experienced in property insurance. Attorneys can:

• Draft the NOI to Litigate and CRN

• Conduct depositions of the field adjuster and corporate representative

• File suit in Bradford County Circuit Court (8th Judicial Circuit)

• Pursue attorney’s fees under §627.428 if you obtain a judgment or settlement greater than the insurer’s offer

Florida courts have routinely awarded fees to prevailing insureds, which can incentivize carriers to settle sooner.

Local Resources & Next Steps

Bradford County Building & Zoning

Mold remediation often triggers permitting if structural work is required. Contact Bradford County Building & Zoning for local code requirements aligned with the Florida Building Code.

Flood & Humidity Concerns

Sections of Starke near Alligator Creek fall within FEMA Flood Zone AE. A separate flood policy through the National Flood Insurance Program (NFIP) is typically required for water intrusion from rising waters, which can also cause mold.

State and Non-Profit Assistance

Florida Division of Emergency Management – disaster grants

• United Way of North Central Florida – temporary housing during remediation

Florida Department of Financial Services Complaint Process

1. Call the DFS helpline (877-693-5236) or file online. 2. Provide the denial letter, claim number, and all correspondence. 3. DFS contacts the insurer for a written response. 4. If unresolved, request mediation under §627.7015. DFS does not replace a court, but many Starke homeowners obtain settlements through this process.

Conclusion

A mold-related property insurance claim denial can be financially devastating, but Florida statutes, DFS programs, and a strong legal strategy offer robust protections. Act quickly, document thoroughly, and do not hesitate to engage professional help.

Legal Disclaimer: The information in this article is for educational purposes only and is not legal advice. For advice regarding 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.