Florida’s Bad Faith Insurance Laws: How Difficult Is It to File a Claim?

Insurance companies are expected to settle claims in good faith. Failure to do so is a violation of state law. Florida’s law states that insurance companies must act “fairly and honestly toward its insured and with due regard for her or his interests.” So, what happens when this expectation is not met? Those who feel their insurance company failed to meet this obligation may consider filing a bad faith claim against it.

In Florida, insurance companies are legally obligated to act in good faith when handling claims. However, when an insurer fails to meet these obligations, policyholders may need to file a bad-faith insurance claim. This process can be complex and challenging. Understanding Florida’s bad-faith insurance laws can help you navigate these issues more effectively. Here’s a detailed look at what you need to know:

Understanding Bad Faith Insurance

Bad faith insurance occurs when a company does not act in good faith towards its policyholders. This includes failing to honor valid claims, delaying payments, or offering less than the owed amount. Florida law provides a framework for addressing these issues and seeking legal recourse.

Florida’s Bad Faith Insurance Laws

Florida’s bad faith insurance laws are designed to protect consumers from unfair practices by insurance companies. The primary laws and regulations include:

• Florida Statutes §624.155: This statute outlines the process for filing a bad faith claim. It allows policyholders to sue insurers for damages if they prove the insurer acted in bad faith. The statute also mandates that insurers act promptly and reasonably in handling claims.
• Florida Statutes §627.7011: This law governs the handling of property insurance claims, including requirements for timely payments and procedures for disputes over claims.

Common Examples of Bad Faith Practices

Insurance companies may engage in bad faith practices in various ways, including:

• Unreasonable Delays: Failing to process claims or make payments within a reasonable timeframe.
• Underpayment: Offering less compensation than what is due under the policy.
• Failure to Investigate: Not conducting a thorough investigation into the claim or disregarding relevant evidence.
• Misrepresentation: Providing misleading information about policy coverage or claim processes.

The Challenges of Filing a Bad Faith Claim

Filing a bad faith insurance claim in Florida can be challenging due to several factors:

• Burden of Proof: The policyholder must prove that the insurer acted in bad faith. This involves demonstrating that the insurer failed to meet its contractual obligations or acted unreasonably.
• Legal Complexities: Bad faith claims often require legal expertise to navigate. Understanding insurance laws, proving bad faith, and calculating damages can be complex.
• Insurance Company Defenses: Insurers may argue that their actions were justified or that the claim was handled appropriately. They may also challenge the evidence presented by the policyholder.
• Time Constraints: There are deadlines for filing bad faith claims. Failing to act within these timelines can affect your ability to seek compensation.

Steps to Take If You Suspect Bad Faith

If you believe your insurer is acting in bad faith, consider the following steps:

• Document Everything: Keep detailed records of all communications, claims, and evidence related to your insurance policy and claim.
• File a Complaint: You can file a complaint with the Florida Department of Financial Services, which oversees insurance companies and can investigate your concerns.
• Seek Legal Advice: Consult a lawyer specializing in bad faith insurance claims. An experienced attorney can help you understand your rights, gather evidence, and navigate the legal process.