Bad faith denials occur when an insurance company in Florida unjustifiably denies or undervalues a legitimate insurance claim, violating its duty to act in good faith.

Determining whether your insurance company is acting in bad faith requires thoroughly evaluating your claim's specific facts and circumstances. Here are some signs that may indicate potential bad-faith conduct by an insurance company:

  • Unreasonable Delay: It could be a sign of bad faith if your insurance company unnecessarily delays processing your claim without valid justification. Insurance companies are generally required to handle claims promptly and efficiently.
  • Unfair Denial or Undervaluation: If your valid claim is denied outright or undervalued without a reasonable basis, it may indicate bad faith. The insurance company should have valid grounds for denying or undervaluing your claim, supported by the policy terms.
  • Inadequate Investigation: Insurance companies must conduct a reasonable investigation into your claim. It could indicate lousy faith if they fail to thoroughly investigate the facts or ignore relevant evidence.
  • Misrepresentation or Deceptive Practices: Misleading or dishonest practices by the insurance company, such as providing false information about your policy coverage, can be signs of bad faith.
  • Failure to Provide Reasoning: Insurance companies should provide clear and specific reasons for claim denials. If the company fails to provide a valid explanation or provides vague or contradictory reasons, it may suggest bad faith.
  • Breach of Duty of Good Faith and Fair Dealing: Insurance policies include an implied duty of good faith and fair dealing, which means the insurance company must act reasonably and honestly in handling your claim. It may be considered a breach of this duty if they act unreasonably, unfairly, or dishonestly.

If  Your Home Insurance Company Has Acted in Bad Faith, There Are Several Steps to Take:

  • Consult an Attorney: It's advisable to consult with an attorney who specializes in insurance law. At Williams Law, P.A., we can help you understand the specific rules and regulations in Florida, assess the strength of your case, and guide you through the process.
  • Document Everything: Keeping thorough records of all communications with your insurance company and documenting the details of your claim is essential for building a solid case.
  • Negotiation: An attorney will work with you to negotiate with the insurance company for a fair resolution. In most cases, a settlement can be reached without going to court.
  • Legal Proceedings: If negotiations fail, your attorney can initiate legal proceedings on your behalf, potentially involving filing a lawsuit. They will represent your interests in court.

Proving Bad Faith in an Insurance Claim

Proving bad faith in an insurance claim can be challenging, as insurance companies often have teams of lawyers working to protect their interests. However, you can build a strong case with the proper evidence and legal representation. It's crucial to consult with an experienced insurance claim attorney who can assess the specific facts of your case and provide legal advice. Our expert insurance claim lawyers will review your policy, correspondence, and evidence to determine if there are grounds for a bad faith claim. We can guide you through the process and help protect your rights when dealing with the insurance company.

Some insurance claims denials result from honest mistakes that can be uncovered by an attorney and corrected. Others are conscious, willful breaches of contract that may constitute actionable insurance bad faith and require a lawsuit targeting a just settlement of the claim and additional damages. At Williams Law, P.A., we take decisive action for policyholders throughout West Central Florida when claims are wrongfully denied based on the following:

  • Denial that the loss was a covered event under the policy terms
  • An allegation that information was omitted or other errors were made on the original insurance application
  • “Post-claim underwriting” directed at finding a pre-existing condition or other reason for claim denial
  • The insurer’s inadequate investigation of the claim
  • Any of a wide array of other invalid excuses offered up by insurers focused on profit at the expense of their policyholders

Understanding the Rights of Property Insurance Policyholders in Florida

As a policyholder in Florida, it's essential to understand your rights when dealing with insurance companies. Florida has specific laws to protect policyholders from unfair treatment and bad faith practices. These laws include the Florida Insurance Code, which outlines policyholders' and insurance companies' rights and responsibilities.

Under the Florida Insurance Code, policyholders have the right to be treated fairly and in good faith by their insurance company. Insurance companies must act honestly, promptly, and somewhat in handling claims. They must also provide policyholders with clear and accurate information about their policies, including the coverage and exclusions.

Are You Being Victimized by a Bad Faith Claim Denial?

Led by a 27-year practicing lawyer and Million Dollar Advocates Forum member, K.C. Williams, we will review your insurance claim denial and gather the necessary information to determine whether it is justified. If we find mistakes, we will attempt to resolve the matter directly with the insurer. If your situation suggests a bad faith claim denial, you will have a proven trial lawyer on your side in your quest to get the benefits you deserve.

Has Your Home Insurance Company Denied or Undervalued Your Property Damage Claim in Florida?

If your insurance company is dragging its feet regarding your property damage claim, you should speak with an experienced insurance claim lawyer as soon as possible. Please contact us online or call our Florida law office at 800.451.6786 to schedule your free consultation. We help Florida residents like you fight the big insurance companies who fail to abide by their policies. Remember, we work on a contingent basis, meaning you don't pay us anything until we win your case. 

K.C. Williams III
Managing Partner who has spent his entire career representing Florida insurance and personal injury claims.