Understanding Bad Faith Claims in Florida

Most of us faithfully pay our insurance premiums with the expectation that if something goes wrong — a car accident, property damage, or other covered loss — our insurer will step in and honor the policy. Unfortunately, that doesn’t always happen.

When an insurance company unreasonably delays, denies, or underpays a valid claim, it may be acting in bad faith. And under Florida law, policyholders have rights.

What Does “Bad Faith” Mean?

Insurance companies have a legal duty to handle claims fairly, honestly, and promptly. This is known as the duty of good faith. It requires insurers to put the policyholder’s interests on equal footing with their own when evaluating and resolving claims.

Bad faith can occur when an insurer:

• Unreasonably denies a valid claim

• Fails to properly investigate before denying coverage

• Delays payment without justification

• Misrepresents policy language

• Offers far less than the claim is worth without explanation

• Ignores communications or fails to respond within required timeframes

Not every denied claim is bad faith. However, when there is no reasonable basis for the insurer’s actions, the situation may cross the line.

Florida’s Bad Faith Protections

Florida law provides strong consumer protections against unfair insurance practices. Under Florida Statute §624.155, policyholders may pursue a bad faith claim when an insurer fails to settle a claim in good faith under circumstances where it should have done so.

Before filing a lawsuit, Florida law typically requires the insured to file a Civil Remedy Notice with the Florida Department of Financial Services. This gives the insurance company a limited time (usually 60 days) to correct the issue. If the insurer fails to remedy the violation, a bad faith lawsuit may proceed.

Common Warning Signs

You may want to speak with an attorney if you notice:

• Repeated requests for the same documents

• Long periods of silence after submitting required information

• Shifting explanations for denial

• Low settlement offers that do not reflect documented damages

• Pressure to accept less than what your policy provides

Insurance companies are businesses — and like any business, they seek to limit payouts. But they cannot ignore their legal obligations.

Why Acting Quickly Matters

Bad faith claims are complex and time-sensitive. Documentation is critical. Keep copies of your policy, correspondence, claim submissions, denial letters, and any communications with adjusters. An experienced attorney can review your policy, evaluate the insurer’s conduct, and determine whether you have grounds for a bad faith action.

Protecting Your Rights

If you believe your insurance company is not honoring its obligations, you are not without options. Florida law was designed to hold insurers accountable and protect policyholders from unfair practices.

You paid for coverage. If your insurer refuses to stand by its promises without a valid reason, it may be time to explore whether a bad faith claim is appropriate. Understanding your rights is the first step toward protecting your financial recovery.

For more information, contact our office at Askew & Associates, P.A. by calling 954-546-2699.

Disclaimer: this blog post is not intended to be legal advice. We highly recommend speaking to an attorney if you have any legal concerns.