When you purchase an insurance policy, you expect your insurer to act fairly, honestly, and in your best interests when a claim is filed. Unfortunately, many Florida policyholders discover that insurance companies do not always honor this obligation. Instead, insurers may engage in bad faith insurance practices—delaying, underpaying, or wrongfully denying valid claims to protect their profits.
At Insurance Dispute Law Group, based in Central Florida, we represent homeowners and injured individuals facing unfair insurance tactics. This article explains what insurance bad faith is under Florida law, common warning signs, and how policyholders can pursue justice and full compensation.
Complete our free case evaluation form or call us now at 407-573-5402 to protect your rights.
What Is Insurance Bad Faith in Florida?
Insurance bad faith occurs when an insurer fails to handle a claim honestly and fairly, placing its own financial interests above those of the policyholder. Florida law requires insurers to act in good faith by:
- Promptly investigating claims
- Communicating clearly and honestly
- Paying valid claims within a reasonable time
- Avoiding deceptive or unfair settlement practices
When an insurer violates these duties, it may be held legally accountable.
Common Examples of Bad Faith Insurance Practices
Bad faith can take many forms. Some of the most common insurance bad faith practices in Florida include:
Unreasonable Claim Delays
Delaying investigations or payments without justification is a classic bad faith tactic. Insurers may request unnecessary documentation or repeatedly reassign adjusters to stall the process.
Wrongful Claim Denials
Denying claims without a proper investigation or misapplying policy exclusions is a common bad faith strategy.
Lowball Settlement Offers
Offering far less than the value of the claim—hoping the policyholder accepts out of desperation—may constitute bad faith.
Failure to Communicate
Ignoring phone calls, emails, or written correspondence can violate an insurer’s duty to communicate promptly and honestly.
Misrepresentation of Policy Language
Insurers may misquote or selectively interpret policy provisions to justify denying or underpaying a claim.
Refusal to Settle When Liability Is Clear
In injury-related claims, failing to settle when liability and damages are obvious may expose the insurer to bad faith liability.
Florida Laws Governing Insurance Bad Faith
Florida has strong statutory and case law protections for policyholders.
Florida Statute §624.155
This statute allows policyholders to file a bad faith claim against an insurer for:
- Not attempting to settle claims in good faith
- Failing to promptly settle when obligated to do so
- Engaging in unfair claim settlement practices
Florida Statute §626.9541
This law prohibits unfair and deceptive insurance practices, including:
- Misrepresenting policy provisions
- Failing to adopt proper claims handling standards
- Denying claims without reasonable investigations
Violations of these statutes may expose insurers to damages beyond the original policy benefits.
Types of Claims Where Bad Faith Commonly Occurs
Bad faith insurance practices frequently arise in:
- Homeowners insurance claims
- Hurricane and storm damage claims
- Roof damage and water loss claims
- Fire and mold damage claims
- Auto insurance injury claims
- Uninsured/underinsured motorist claims
Florida’s high volume of weather-related claims makes policyholders especially vulnerable to bad faith tactics.
How Bad Faith Insurance Claims Differ From Coverage Disputes
A coverage dispute involves disagreement over whether the policy covers a loss. A bad faith claim, on the other hand, focuses on the insurer’s conduct.
Typically:
- The underlying claim must be resolved first (coverage established or benefits owed).
- A bad faith claim may then be pursued if the insurer’s conduct violated Florida law.
An experienced insurance dispute attorney can determine whether both claims apply.
Signs Your Insurance Company May Be Acting in Bad Faith
You may be dealing with bad faith if your insurer:
- Repeatedly changes reasons for denial
- Ignores evidence supporting your claim
- Delays without explanation
- Refuses to provide documentation
- Pressures you to settle quickly
- Fails to follow Florida claim deadlines
Trust your instincts—if something feels unfair, it often is.
What to Do If You Suspect Insurance Bad Faith
1. Document Everything
Keep records of all communications, estimates, denial letters, and timelines.
2. Request Written Explanations
Force the insurer to put its reasons for denial or delay in writing.
3. Avoid Accepting Inadequate Settlements
Accepting a low offer may limit your ability to pursue further claims.
4. File a Civil Remedy Notice (CRN)
Florida law often requires filing a Civil Remedy Notice before pursuing a bad faith lawsuit. This gives the insurer an opportunity to cure the violation.
5. Consult an Insurance Dispute Lawyer
Bad faith claims are complex and highly technical. Legal representation is essential to protecting your rights.
Damages Available in Florida Bad Faith Insurance Claims
If successful, policyholders may recover:
- Full policy benefits
- Interest on delayed payments
- Attorney’s fees and costs
- Consequential damages caused by delay
- Potential punitive damages in extreme cases
Bad faith claims are designed to punish misconduct and deter future abuse.
How Insurance Dispute Law Group Can Help
At Insurance Dispute Law Group, we aggressively advocate for policyholders by:
- Analyzing insurer conduct for bad faith violations
- Handling Civil Remedy Notices
- Negotiating and litigating claims
- Holding insurance companies accountable in court
We know the tactics insurers use—and how to fight them.
Serving Central Florida Policyholders
As a Central Florida-based law firm, we proudly represent homeowners and injury victims throughout Orlando and surrounding communities. We understand Florida insurance law and the challenges policyholders face when insurers act unfairly.
Speak With a Florida Insurance Bad Faith Lawyer Today
If you believe your insurance company is acting in bad faith, you may have legal options beyond accepting denial or delay.
Complete our free case evaluation form to discuss your case, or call us now at 407-573-5402 to speak with our legal team today.
Sources
- Florida Statute §624.155 – Civil Remedies Against Insurers
Explains the legal framework for bad faith insurance claims in Florida.
https://www.leg.state.fl.us/statutes - Florida Statute §626.9541 – Unfair Insurance Trade Practices
Defines prohibited insurance practices and consumer protections.
https://www.leg.state.fl.us/statutes - Florida Office of Insurance Regulation (FLOIR)
Provides consumer resources and regulatory oversight of insurance companies.
https://www.floir.com
