Property Insurance Claim Guide – Hollywood, Florida

Introduction: Mold Damage & Property Insurance in Hollywood, Florida

Hollywood, Florida’s year-round humidity, proximity to the Atlantic Ocean, and frequent tropical storms create perfect conditions for mold growth inside homes and condominiums. When excess moisture from roof leaks, plumbing failures, or hurricane-driven rain feeds spores hidden behind drywall, the cleanup cost can climb into the tens of thousands of dollars. Homeowners therefore rely heavily on property insurance to cover remediation, damaged building materials, and any necessary relocation expenses.

Unfortunately, insurers often label mold a maintenance problem or apply strict policy sub-limits, leaving Hollywood policyholders shocked when they receive a denial letter. This guide explains, step-by-step, how Florida law protects you, why mold-related claims are frequently rejected, and what actions you can take—locally and statewide—to challenge an improper decision.

Understanding Your Rights in Florida

1. The Policy Is a Contract

Under Florida contract law, an insurance policy is a legally binding agreement. When you pay premiums, your carrier owes a duty of good faith to investigate and pay covered losses. Florida courts have repeatedly affirmed that ambiguous provisions must be interpreted in favor of the insured. See Fayad v. Clarendon Nat’l Ins. Co., 899 So. 2d 1082 (Fla. 2005).

2. Timely Claim Handling

Florida Statutes § 627.70131(1)(a) requires insurers to begin investigating a property claim within 14 days of notice. Subsection (5)(a) then compels the carrier to pay or deny coverage within 90 days unless caused by factors beyond its control. Missing either deadline may constitute unfair claim practices.

3. Statute of Limitations

You have five years from the date of breach to sue for unpaid benefits (Florida Statutes § 95.11(2)(e)). Waiting too long hands insurers an easy technical defense, so act promptly.

4. Replacement Cost vs. Actual Cash Value

Florida Statutes § 627.7011 mandates that if you purchased Replacement Cost Value (RCV) coverage, the carrier must pay the cost to repair or replace damaged property without a deduction for depreciation, once repairs are completed and properly documented.

5. Mold Sub-Limits

Many Florida policies contain a $10,000 mold cap. However, if the underlying cause of loss—like a sudden broken pipe—is covered, courts sometimes require insurers to pay the full water damage plus the mold remediation up to other applicable limits. Always review both the mold endorsement and the water damage provision.

Common Reasons Property Insurance Companies Deny Claims in Florida

• Late Reporting – Carriers argue you waited too long, allowing mold to spread. Yet Florida statutes only require you to give notice promptly; what is prompt depends on circumstances. If you discovered mold weeks after a hidden leak, you may still be within a reasonable timeframe.

• Excluded Cause of Loss – Insurers often claim that long-term seepage, condensation, or wear and tear are excluded. However, sudden and accidental discharges are typically covered, and the burden is on the carrier to prove exclusion.

• Failure to Mitigate – Policies require policyholders to take reasonable steps to prevent further damage. Hiring a local remediation firm and documenting efforts (photos, receipts, moisture readings) helps defeat this argument.

• Mold Sub-Limit Exhausted – As noted, many policies cap mold at $10,000. But adjusters sometimes apply the cap to every part of the claim—including tearing out walls—when policy language may only limit remediation. Careful reading is critical.

• Pre-Existing Damage – Hollywood’s warm climate means spores can lie dormant for years. Insurers claim growth pre-dated policy inception. Independent lab testing, prior inspection reports, and realtor disclosures can rebut that assertion.

Florida Legal Protections & Regulations

Florida Statutes & Administrative Code

• § 624.155, Florida Statutes – Allows civil actions for insurer bad faith when the carrier fails to settle claims fairly.

• § 626.9541(1)(i) – Defines unfair claim-handling practices, such as misrepresenting policy provisions or failing to acknowledge communications.

• Florida Administrative Code Rule 69O-166.055 – Requires insurers to maintain written claim files documenting all communications, estimates, and payments, ensuring transparency during litigation.

Department of Financial Services (DFS) Oversight

The Florida Department of Financial Services Consumer Services Division regulates property insurers. Homeowners may file a Consumer Complaint online. DFS will contact the carrier for a written explanation within 20 days. While DFS cannot order payment, its involvement often prompts faster reconsideration.

Submit complaints at: Florida DFS Consumer Services.

Building Codes & Hollywood’s Local Ordinances

Broward County enforces the Florida Building Code and requires mold remediation contractors to follow strict containment standards. Non-compliant work can void coverage or delay payments. Verify your contractor’s license at the Florida Department of Business & Professional Regulation.

Steps to Take After a Denial in Florida

1. Review the Denial Letter Line-by-Line

Florida Statutes § 627.70131(7)(a) requires insurers to explain the specific policy language supporting denial. If the letter merely cites a broad exclusion, request clarification in writing.

2. Gather Documentation

• Full insurance policy (including endorsements).

• All correspondence with the carrier.

• Photographs and video of mold damage.

• Moisture mapping, air sampling, or lab reports.

• Receipts for remediation, hotel stays, and damaged contents.

3. Obtain an Independent Damage Assessment

Licensed Florida public adjusters or industrial hygienists can provide an unbiased estimate. Under Florida law, public adjuster contracts must state fees (typically capped at 20% of recovered amounts, reduced to 10% during declared emergencies).

4. Invoke the Appraisal Clause (If Available)

Many policies allow either party to demand appraisal to resolve disputes about the amount of loss. Appraisal is usually faster than court, but you still need to preserve rights regarding coverage issues.

5. File a DFS Complaint

If negotiations stall, submit a consumer complaint through DFS’s online portal. Attach the denial letter and any expert reports. DFS data shows insurers often reopen files after state inquiry.

6. Serve a Civil Remedy Notice (CRN)

Before filing a bad-faith lawsuit under § 624.155, you must submit a CRN via DFS’s database. The insurer then has 60 days to cure. Omitting this step can bar later bad-faith claims.

7. Litigation

If the carrier still refuses payment, you may sue for breach of contract and, if bad faith is proven, seek extra-contractual damages. Florida’s federal Southern District courthouse in Fort Lauderdale and the Broward County Circuit Court both hear insurance disputes originating in Hollywood.

When to Seek Legal Help in Florida

While some homeowners handle disputes alone, mold claims often involve scientific evidence and dense policy language. You should consult a licensed Florida attorney when:

• The denial cites complex exclusions (e.g., “long-term seepage,” “fungi, wet rot, or bacteria” clauses).

• The insurer questions the cause of loss or alleges fraud.

• You face significant uncovered expenses (structural tear-outs, HVAC replacement, or relocation costs).

• The carrier’s 90-day decision deadline has passed with no payment.

Florida attorneys typically work on contingency fees for property claims. Under § 627.428 (repealed prospectively but still applicable to older claims) and successor fee-shifting provisions, courts may order insurers to pay reasonable attorney’s fees when the insured prevails.

Verify your lawyer’s standing via the Florida Bar Lawyer Directory.

Local Resources & Next Steps

Hollywood-Specific Contacts

• City of Hollywood Building Division – Permits and inspection records that may corroborate repair history.

• Broward County Environmental Protection – Guidance on indoor air quality and mold.

South Florida Water Management District – Flood zone data affecting coverage decisions; view maps at SFWMD Official Site.

Prepare for the Next Storm

After resolving your claim, conduct routine roof inspections, maintain HVAC systems, and install dehumidifiers. Insurers may offer premium credits for mitigation measures, and proper upkeep reduces future denial risks.

Stay Informed

Florida’s insurance landscape changes quickly. The Legislature amended portions of Chapter 627 in both 2022 and 2023 to address rising premiums and carrier insolvencies. Monitor reputable outlets such as Insurance Information Institute for updates that could impact your policy.

Legal Disclaimer

This guide provides general information for Hollywood, Florida homeowners. It is not legal advice. Laws and regulations change, and every claim is unique. Consult a licensed Florida attorney for advice regarding your specific situation.

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