When an insurance company goes beyond a simple coverage dispute and engages in conduct that is unreasonable, deceptive, or designed to deprive you of benefits you are entitled to, it may be acting in bad faith under Florida law.
Insurance companies owe their policyholders a duty of good faith — to investigate claims fairly, communicate honestly, and pay what’s owed in a timely manner. When an insurer puts its own bottom line ahead of that duty, it may be acting in bad faith, and Florida law gives you a powerful tool to hold them accountable.
What Counts as Bad Faith?
Bad faith isn’t just a denied or delayed claim — it’s when an insurer’s conduct in handling your claim falls short of what the law requires. Common examples include:
- Failing to conduct a timely, thorough, or fair investigation
- Unreasonably delaying payment or a coverage decision
- Denying a claim without a reasonable basis
- Failing to communicate settlement offers or claim status
- Offering far less than a claim is reasonably worth
- Misrepresenting policy language or coverage
- Failing to properly train or supervise adjusters handling your claim
Florida’s Bad Faith Law
Under Florida Statute § 624.155, policyholders have the right to pursue a bad faith claim against their insurer when the company fails to act in good faith. This is separate from — and in addition to — the underlying coverage dispute itself. If successful, a bad faith claim can result in damages beyond your original policy limits, including amounts the insurer’s bad faith conduct caused you to lose.
Why Bad Faith Claims Matter
Filing a bad faith claim sends a clear message: insurers can’t cut corners, drag their feet, or lowball a legitimate claim without consequence. It’s one of the most effective ways to hold an insurance company accountable — and to recover the full value of what you’re owed.
Bad faith claims involve strict procedural requirements and deadlines, including a mandatory notice period before a lawsuit can be filed. Missing a step can jeopardize your claim, which is why experienced legal guidance is essential.
Frequently Asked Questions
What is insurance bad faith in Florida?
Bad faith is more than a denied or delayed claim. It is conduct in handling your claim that falls short of what the law requires, such as failing to investigate fairly, unreasonably delaying payment, or denying a claim without a reasonable basis. Fla. Stat. § 624.155 gives policyholders the right to pursue a bad faith claim in certain circumstances, and the process includes a mandatory notice period before a lawsuit can be filed. See our bad faith page.
Can I sue my insurance company if it refuses to pay my claim?
A policyholder may be able to file a lawsuit to enforce the policy, but Florida law has specific deadlines and requirements that must be met before and after a lawsuit, and the rules have changed significantly in recent years. Speak with an attorney before the deadlines pass.
Can I recover attorney’s fees from my insurance company if I win?
It depends on your policy and the type of claim. Florida law changed significantly in 2022 and generally eliminated the statutory right to recover attorney’s fees from an insurance company in lawsuits arising under residential and commercial property insurance policies. However, the law in effect when your insurance policy was issued may affect whether attorney’s fees are recoverable.
Different rules may also apply to a separate bad-faith action against an insurance company.
We handle property insurance claims on a contingency fee basis and advance the costs of pursuing the claim. An initial consultation costs you nothing. We can review your policy, the date it was issued, and the circumstances of your claim to explain how Florida’s attorney-fee laws apply to your particular situation.
How long does my insurance company have to pay or deny my claim?
Florida law generally requires an insurance company to pay or deny an initial, reopened, or supplemental property insurance claim, or a portion of the claim, within 60 days after receiving notice of the claim. The insurer must also provide a reasonable written explanation of the basis for its payment, denial, or partial denial. See Fla. Stat. § 627.70131.
Insurance companies generally must also acknowledge claim-related communications within 7 calendar days, subject to certain exceptions.
The 60-day deadline may be extended or tolled in circumstances permitted by Florida law, so a delay beyond 60 days does not necessarily mean that an insurer has violated the statute. An insurer’s failure to meet the 60-day deadline does not, by itself, establish a private cause of action against the insurer. If your claim has been pending for more than 60 days without a coverage decision or payment, consider asking your insurer in writing to explain the status of your claim.
How much does it cost to hire a property insurance attorney?
We handle property insurance claims on a contingency fee basis. This means you do not pay attorney’s fees upfront. We advance the costs of pursuing your claim, and we are paid only if we obtain a recovery for you.
If we recover money on your behalf, our attorney’s fee is a percentage of the recovery, and our fee and case costs are paid from the recovery in accordance with the written contingency fee agreement. If we do not obtain a recovery for you, you owe us nothing.
We do not charge a fee or deduct costs from insurance payments you received before hiring our firm.
Your initial consultation is free. Before you decide to hire us, we will explain the contingency fee agreement, including how attorney’s fees and costs are calculated. Contact us or call 727.896.7777 for a free consultation.
Believe Your Insurer Has Acted in Bad Faith?
Let us help you understand your rights and hold them accountable.