Guide to Bad Faith Insurance Claims in Florida
If your insurance company has denied your claim or resolved it unsatisfactorily, you may be able to bring a bad faith claim against them in court. Of course, not every denial constitutes bad faith. As Miami insurance claim lawyers, we are experienced in determining whether an insurer has handled a claim appropriately and in recognizing bad faith insurance practices. For a policyholder, the first step is to educate yourself as to what your insurance company is obligated to do. The law requires insurers to act in good faith and to engage in fair deals. Specifically, they are obligated to: Recognize your claim; Investigate in a prompt manner; Respond quickly to your communications; Not slow down the progression with unnecessary forms; and Offer actual reasons for denial of your claim or delays in the process. There are Two Types of Bad Faith Claims A “first-party” bad faith claim arises when an insurance company unreasonably refuses to pay a claim or to properly investigate a claim. A “third-party” bad faith claim is when an insurance company unreasonably fails to defend, indemnify or settle a claim within policy limits or to investigate a claim for a different-party, such as when the insured (the first party, you) buys insurance from the insurance company to protect against claims from another (the third party). Florida Law on Bad Faith Claims The good news for bad faith claimants in Florida is that the law is quite clear. The statute provides that “any person may bring a civil […]