What Is Bad Faith Insurance? A Florida Property Damage Guide

What Is Bad Faith Insurance? A Florida Property Damage Guide

You paid your premiums for years. Then a hurricane, a burst pipe, or a roof leak damaged your home, and your insurance company responded with delays, lowball numbers, or a denial letter that makes no sense. If that sounds familiar, you may be asking: what is bad faith insurance, and does it apply to me?

This guide explains the term in plain English, shows what it looks like in Florida property claims, and walks through the steps you can take right now.

What Is Bad Faith Insurance?

Bad faith insurance means an insurance company fails to handle your claim honestly and fairly. Every insurer in Florida owes policyholders a duty of good faith. That means the company must investigate promptly, communicate honestly, and pay what the policy covers. It cannot put its own financial interests ahead of yours.

Florida law backs this up. Section 624.155 of the Florida Statutes lets policyholders pursue a bad faith claim when an insurer does not attempt in good faith to settle a claim when, under all the circumstances, it could and should have done so. Section 626.9541 separately lists unfair claim settlement practices, including misrepresenting policy terms and denying claims without a reasonable investigation.

A claim that is simply denied is not automatically bad faith. Insurers are allowed to disagree with you about coverage. Bad faith is about how they handled it: carelessly, deceptively, or with an eye toward protecting their bottom line.

Common Examples of Bad Faith in Florida Property Claims

Property damage claims create many openings for unfair treatment. Warning signs include:

• Unreasonable delays. Florida law (Section 627.70131) requires insurers to acknowledge your claim within 7 days and to pay or deny it within 60 days of receiving notice, unless factors beyond their control apply. Long silences and repeated requests for the same documents are red flags.
• Lowball estimates. The adjuster's number covers a fraction of what licensed contractors say the repairs will cost, and the insurer will not explain the gap.
• A rushed or one-sided inspection. The adjuster spends minutes on the property, ignores hidden damage, or relies on an engineer who consistently sides with the carrier.
• Denial without a clear reason. You receive a vague letter that never points to the specific policy language it relies on.
• Misrepresenting your coverage. The company tells you something is not covered when your policy says it is.
• Shifting the blame. The insurer attributes storm or water damage to wear and tear or pre-existing conditions without real evidence.
• Pressuring you to settle. You are pushed to accept a quick payment before the full scope of damage is known.

No single item proves bad faith. But a pattern, especially one that leaves you unable to repair your home, is worth taking seriously.

The Civil Remedy Notice: A Key Step in Florida

Before you can file a statutory bad faith lawsuit in Florida, the law requires a formal step called a Civil Remedy Notice (CRN). Your attorney files it through the Florida Department of Financial Services website. The notice must describe the insurer's conduct and identify the policy language and statute violated.

Once the CRN is filed, the insurer has 60 days to cure the problem, usually by paying the amount owed. If it does, the bad faith claim generally ends there. That is why the CRN is often a powerful tool: it can push a company to finally pay a claim it has been dragging out.

The notice has to be specific and accurate. Errors or vague wording can sink it, which is one reason property owners should not try to file one alone.

What You Must Prove, and What Has Changed

Florida bad faith law has shifted in recent years, so it helps to know the current landscape.

In a first-party property claim (where you are suing your own insurer), you generally must first establish that the insurer owes you coverage and a specific amount of damages. The bad faith case follows after that. Recent reforms also state that negligence alone is not enough for bad faith. Instead, the question is whether the insurer acted unreasonably under the circumstances.

Florida also ended one-way attorney's fees in most property insurance disputes for policies issued after December 2022. That change makes it more important to work with a firm that evaluates your claim honestly and understands the current rules.

Time limits matter, too. Florida now requires policyholders to give notice of a property claim within one year of the date of loss, and supplemental claims within 18 months. Waiting too long can cost you your claim before bad faith even enters the picture.

What to Do If You Suspect Bad Faith

You do not have to accept an unfair outcome. Take these steps:

1. Document everything. Keep every email, letter, text, and claim number. Write down dates and names from each phone call.
2. Get independent repair estimates. Written estimates from licensed contractors show the real cost of repairs and expose lowball numbers.
3. Request your complete claim file and policy. Ask for the adjuster's report, engineer's report, photos, and the exact policy provisions behind any denial.
4. Photograph and video the damage. Keep a dated record before you make repairs, and save damaged materials when possible.
5. Make temporary repairs to prevent further damage. Keep receipts. Most policies require this, and ignoring it can hurt your claim.
6. Do not sign a release or accept a final payment without review. Cashing a check marked as full and final can close the door on additional recovery.
7. Talk to a Florida property insurance attorney early. The sooner someone reviews your file, the more options you keep.

How Louis Law Group Can Help

Insurance companies have teams of adjusters, engineers, and lawyers working for them. You should have someone on your side, too. Louis Law Group represents Florida homeowners and property owners whose claims have been denied, delayed, or underpaid. We review your policy and claim file, identify where the insurer went wrong, and push for the full payment you are owed, including pursuing bad faith remedies when the facts support them.

You do not need to prove everything before you call. Bring what you have, whether that is a denial letter, an estimate that seems far too low, or months of unanswered emails, and we will tell you where you stand.

If your Florida property damage claim was denied or underpaid, Louis Law Group fights for your full compensation. Call us for a free case review.