Delaying Property Insurance Claims: A Profitable Strategy for Insurers
Delays in insurance claim payments have become an alarming trend across Florida. As homeowners struggle to recover from storm damage, water leaks, or hurricane destruction, many are left waiting—weeks, months, or even years—to receive compensation that should have been issued promptly. These delays are not random. Florida property insurance companies often use intentional stalling tactics to reduce payouts and increase profit margins.
Filing a property insurance claim can be a stressful experience, especially when you’re dealing with damage to your home or business. The last thing you want is to face unnecessary delays from your insurance company. Unfortunately, delays are common and can leave policyholders feeling frustrated and uncertain about when, or even if, they’ll receive the compensation they need to make repairs.
So why do insurance companies delay property insurance claims or ignore policyholders? Understanding the reasons behind these delays can help you navigate the process more effectively and take steps to ensure your claim is handled as swiftly as possible.
Common Reasons for Florida Home Insurance Claim Delays
Requesting Repetitive or Unnecessary Documentation
After you’ve submitted estimates, receipts, and photographs, the insurer may ask for:
- Additional, redundant forms
- Multiple recorded statements
- Re-inspections by “neutral” adjusters
- Verification of receipts already submitted
These requests often aim to create procedural hurdles, not improve claim accuracy.
Failing to Respond Within Florida’s Statutory Deadlines
Under Florida Statute § 627.70131, insurers must:
- Acknowledge receipt of the claim within 14 days
- Begin investigation within 14 days
- Provide a claim decision within 60 days (unless exceptional circumstances apply)
Insurers frequently miss these deadlines despite these rules and rarely face consequences unless you retain legal counsel.
Sending Biased Engineers or Adjusters
Insurance carriers often hire third-party experts to justify a denial or underpayment. These individuals may:
- Downplay the extent of damage
- Attribute the cause to uncovered events
- Use vague terminology to question the claim
Their reports are not truly independent and are frequently designed to support the insurer’s bottom line.
Complexity of the Claim
Not all claims are straightforward. For example, if your home has sustained extensive or multiple types of damage (e.g., wind and water), the insurance company may need more investigation time. Additionally, claims involving high-value items or unique circumstances may require more scrutiny.
- What You Can Do: Understand that complex claims might take longer to process. Stay in regular contact with your claims adjuster to keep the process moving and to get updates on any developments.
High Volume of Claims
Insurance companies often receive a surge in claims after a natural disaster, such as a hurricane or wildfire. This influx can overwhelm adjusters and slow down the processing time for each claim. Unfortunately, this is a common situation in areas prone to natural disasters.
- What You Can Do: Be patient, but don’t be afraid to follow up with your insurer regularly. Document all communications and keep a log of the dates and details of your conversations.
Internal Investigations
Sometimes, the insurance company may delay your claim because they are conducting an internal investigation. This can happen if there are questions about the cause of the damage, the extent of the loss, or if fraud is suspected. While such investigations are necessary to prevent fraudulent claims, they can also lead to delays for legitimate claims.
- What You Can Do: Cooperate fully with the investigation, promptly providing any requested documentation or information. If the investigation is unjustified or taking too long, consider seeking a Florida insurance claim lawyer.
Blaming Damage on Excluded Perils
One of the most common delay tactics is blaming the loss on a non-covered peril, such as:
- Wear and tear
- Pre-existing damage
- Flooding (when not covered)
- Negligence by the homeowner
The insurer drags out the process by shifting liability while forcing the homeowner to gather additional proof.
Adjuster Workload or Availability
Adjuster Issues: The insurance adjuster is key in evaluating the damage and determining the payout. However, changes in adjusters, inexperienced or overwhelmed adjusters, or poor communication can lead to delays. Sometimes, the adjuster may also work in the insurance company’s favor by dragging out the process to minimize the payout.
Negotiation Tactics
In some cases, insurance companies may delay a claim as a negotiation tactic. By postponing the payout, they may hope to pressure policyholders into accepting a lower settlement than they are entitled to.
Statute 627.4265 states that if “a person and an insurer have agreed in writing to the settlement of a claim, the insurer shall tender payment according to the terms of the agreement no later than 20 days after such settlement is reached.
How to Avoid This: If you suspect the insurance company is stalling to force a low settlement, it’s crucial to stand firm and not settle for less than you deserve. Consulting with an insurance claim attorney at Williams Law, P.A. can help you push back against these tactics and get your claim paid.
Understanding Bad Faith Practices
Sometimes, an insurance company may engage in bad faith practices, which are illegal and unethical actions designed to avoid paying out claims. Examples of bad faith practices include:
- Unreasonable Delays: Deliberately delaying the processing of your claim without a valid reason.
- Misrepresentation of Coverage: Providing misleading information about your policy to avoid paying your claim.
- Lowball Offers involve offering significantly less compensation than your claim is worth, hoping you will accept it out of frustration.
Your Rights as a Policyholder in Florida
In Florida, policyholders have certain rights when processing insurance claims. The Florida Office of Insurance Regulation outlines specific timeframes that insurance companies must adhere to:
- Acknowledgment of Claim: The insurance company must acknowledge your claim within 14 days of receiving it unless they have already paid the claim.
- Decision on the Claim: The insurance company must pay or deny your claim within 90 days of receiving it unless factors beyond their control prevent them from deciding.
- Prompt Payment: If your claim is approved, the insurance company must pay you within 20 days of the decision.
Why Hire a Florida Insurance Claim Lawyer to Help?
- Expediting the Claims Process: Williams Law, P.A. can help expedite the process by ensuring all necessary documentation is complete and accurate. We can also follow up with the insurance company to push for a timely resolution.
- Handling Disputes: We can negotiate if the insurance company disputes your claim or offers an inadequate settlement.
- Legal Representation: In some cases, disputes may escalate to the point where legal action is necessary. Our insurance claim lawyers will represent you in court, ensuring that your case is presented effectively and your interests are protected.
- Maximizing Your Settlement: Insurance companies are often motivated to minimize payouts. Our lawyers can help you understand the full extent of your coverage and work to ensure you receive the maximum compensation for your claim.
Taking Action Against Property Insurance Claim Delays
If your property is damaged and your insurance company is delaying payment without justification, you’re not alone. Thousands of Florida homeowners face the same frustrating roadblocks. The key is to act quickly, document everything, and bring in legal professionals who can apply pressure.
By working with our expert Florida property insurance claim lawyers, you can ensure that your claim is handled fairly and efficiently, and you can focus on getting your life back to normal. If you’re struggling with a delayed claim, don’t wait; our experienced insurance claim lawyers are here to provide the support and guidance you need. Call us at 1-800-451-6786 or fill out our online contact form.