What Does “Failure to Investigate” Mean?
When your home suffers damage—from a hurricane, burst pipe, fire, or other disaster—you expect your insurance company to act quickly, reasonably, and thoroughly in reviewing your claim. But what happens when they don’t? One of the most serious forms of insurance misconduct is failing to investigate a claim thoroughly.
In Florida, failure to investigate a home insurance claim may be considered a form of bad faith, leaving policyholders financially vulnerable at a time when they need assistance the most. In this article, we break down what failure to investigate means, how to recognize it, and what legal options you may have if your insurer is acting unfairly.
A proper investigation should include:
- Timely Response: The insurer must promptly acknowledge the claim, assign an adjuster, and initiate the investigation.
- Thorough Inspection: The insurance company should conduct a comprehensive inspection of the damaged property, often with the assistance of professionals such as adjusters, contractors, or engineers.
- Fair Assessment: The insurer should accurately assess the extent of the damage and the cost of repairs or replacement.
- Objective Review: The insurer should evaluate the claim without bias, considering all available evidence, including the policyholder’s documentation and statements.
How Failure to Investigate Impacts Policyholders
When an insurance company fails to investigate a claim properly, the impact on the policyholder can be significant:
- Delayed Claims: Without a proper investigation, the claims process can be delayed indefinitely, leaving homeowners without the necessary funds to repair their property.
- Underpayment: A poor or incomplete investigation may lead to an inaccurate assessment of the damage, resulting in a lower payout than necessary to cover repair costs.
- Claim Denial: In some cases, failure to investigate can result in the wrongful denial of a claim, leaving homeowners to bear the financial burden alone.
- Increased Stress: The uncertainty and frustration caused by an inadequate investigation can exacerbate emotional stress in an already challenging situation.
Signs That Your Insurer Failed to Investigate Properly
You may be dealing with a failure to investigate if:
- Your adjuster spent minimal time at your property or never showed up.
- The insurer provided little or no explanation for their findings.
- You submitted detailed evidence that was ignored or never acknowledged.
- You were denied or underpaid quickly, with no attempt to verify the full extent of the damage.
- You feel like you’re constantly chasing the insurer for updates, inspections, or documentation.
Why Do Inadequate Investigations Happen?
Inadequate investigations can occur for several reasons:
- Cost-Cutting Measures: Insurance companies may seek to minimize costs by conducting minimal investigations and offering lower settlements.
- Inexperienced or Overworked Adjusters: Insurers may employ adjusters who are inexperienced or handling too many claims, leading to rushed or incomplete investigations.
- Intentional Bad Faith: In some cases, insurers may act in bad faith, intentionally underestimating damages or denying claims without proper justification.
- Complexity of Claims: Some claims, particularly those involving multiple types of damage or complex policies, can be challenging to assess accurately, which may lead to errors or omissions.
Addressing Failure to Investigate
If you believe that your property insurance claim has been subject to a failure to investigate, there are several steps you can take to address the issue:
- Review Your Policy and Documentation: Carefully review your insurance policy to understand the coverage, exclusions, and procedures for filing a claim. Ensure you have provided all required documentation and evidence to support your claim.
- Request a Copy of the Investigation Report: Obtain a copy of the investigation report from your insurance company and review it for completeness and accuracy. Compare the report with your evidence to identify any discrepancies or omissions.
- Consult with an Insurance Lawyer: A Florida insurance claim lawyer can help you navigate the appeals process and address issues related to failure to investigate. Williams Law, P.A. will advocate on your behalf, negotiate with the insurance company, and take legal action if necessary.
Legal Protections for Florida Homeowners
Florida Statute § 624.155 – Civil Remedy for Bad Faith
Under this law, Florida policyholders may file a bad faith claim if the insurer fails to:
“…attempt in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for her or his interests.”
Failure to investigate is a core violation of this principle. Before suing for bad faith, homeowners must file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services, giving the insurer 60 days to correct its actions.
Why Hire an Insurance Claim Lawyer?
At Williams Law, P.A., we have over 30 years of experience standing up to insurance companies who try to delay, deny, or underpay valid home insurance claims. We help homeowners across Florida take action when insurers:
- Failure to investigate or respond
- Disregard evidence
- Offer unfair settlements
- Act in bad faith
We’ll fight to get you the full compensation you’re entitled to under your policy—and the law.
Protecting Your Rights in Florida
Failure to properly investigate a home insurance claim can be frustrating and have serious financial and emotional consequences. As a policyholder, you have the right to a fair and thorough investigation of your claim. By understanding the signs of inadequate investigation and knowing your legal rights, you can take the necessary steps to ensure your claim is handled correctly. Don’t hesitate to call us at 1-800-451-6786 or fill out our online contact form.