What Every Florida Property Insurance Policyholder Should Know About Bad Faith
Insurance companies are supposed to provide financial protection and peace of mind by honoring their policy commitments. However, when insurers fail to act in good faith, policyholders may face undue stress and economic hardship. Understanding the signs of bad faith insurance practices can help you identify when an insurer is acting improperly and take appropriate action. This blog explores common indicators of bad-faith behavior by insurance companies and how policyholders can address these issues.
What Is Bad Faith Insurance in Florida?
Bad faith insurance occurs when an insurance company fails to uphold its legal duty to act fairly and honestly when handling claims. Under Florida Statute 624.155, policyholders have the right to sue their insurer if it unfairly denies or delays a claim without proper cause.
There are two main types of bad-faith insurance claims:
First-Party Bad Faith
When an insurance company refuses to investigate correctly, underpays, or wrongfully denies a policyholder’s claim.
Third-Party Bad Faith
When an insurer fails to protect its policyholders from liability, it exposes them to financial losses beyond their policy limits.
Common Signs of Bad Faith Insurance Practices
Florida property insurance companies are required to handle claims promptly and reasonably. However, signs of bad faith may include:
- Unreasonable Delays: The insurer takes excessive time to investigate or respond to your claim.
- Lowball Settlement Offers: Offering significantly less than the claim’s fair value without justification.
- Failure to Investigate: The insurance company does not properly inspect the damage or ignores critical evidence.
- Unjustified Denial: Denying a valid claim without a legitimate reason.
- Misrepresentation of Policy Terms: The insurer provides misleading or incorrect information about coverage.
- Refusal to Provide a Reason: The company fails to explain why it denied your claim.
- Threatening or Intimidating Behavior: Pressuring policyholders into accepting an unfair settlement.
Legal Protections for Florida Policyholders
Florida law provides several protections for policyholders dealing with bad-faith insurance practices:
Florida’s Bad Faith Law
Under Florida law, insurers have a duty to act in good faith when handling claims. The key statutes and legal principles include:
- Statutory Framework: Florida Statutes §624.155 and §626.9541 outline the requirements for insurers to act in good faith and provide remedies for bad faith practices.
- Civil Remedies: Policyholders can seek damages for bad faith, including compensatory damages, punitive damages, and reimbursement for legal fees.
Don’t Let Your Insurance Company Take Advantage of You
If you’re dealing with a delayed, denied, or underpaid property insurance claim in Florida, don’t wait to take action. Insurance companies are required by law to handle claims fairly, and you have rights when they don’t. A bad-faith insurance lawyer can help you hold them accountable and recover the compensation you deserve.
Why Is Hiring a Florida Insurance Lawyer Important?
Our experienced Florida insurance claim lawyers can provide significant advantages when dealing with bad-faith insurance:
- Expert Evaluation: We can assess whether the insurer’s actions constitute bad faith and advise on the best action.
- Effective Negotiation: Our job is to negotiate with insurers and advocate for a fair settlement on your behalf.
- Legal Representation: If necessary, we can represent you in court or legal proceedings, pursuing remedies for bad faith and protecting your rights.
- Guidance on Procedures: An attorney can guide you through the legal process, including filing a Civil Remedy Notice and understanding Florida’s insurance laws.
Protect Your Rights Against Bad Faith Insurance Practices
If you’re struggling with a delayed, denied, or underpaid property insurance claim in Florida, don’t let your insurance company take advantage of you. Insurance companies are legally required to handle claims fairly, and you have rights when they don’t.
Need Legal Help for a Florida Bad Faith Insurance Claim?
Contact Williams Law, P.A. today for a free consultation. Our experienced Florida bad faith insurance attorneys fight for policyholders facing unfair claim denials and insurance company misconduct. Call 1-800-451-6786 to protect your rights and get the settlement you deserve.