Florida Bad Faith Insurance Claims: What You Need to Know

Last checked against the Florida Statutes and official sources on October 24, 2026. This is general information, not legal advice.

A Florida first-party property bad faith claim concerns an insurer's legally actionable handling of its own insured's claim, rather than simply disagreement about coverage or repair costs. For extracontractual claims under section 624.155(1)(b), current law requires an adverse court adjudication of breach and a final judgment against the property insurer, along with the applicable civil remedy notice and cure process (sections 624.155 and 624.1551, Florida Statutes).

What is a bad faith insurance claim in Florida?

Section 624.155(1)(b) addresses failure to attempt settlement in good faith when, considering all the circumstances, the insurer could and should have settled while acting fairly, honestly and with due regard for its insured's interests. It also addresses payments without identifying coverage and certain failures to settle under one coverage to influence settlement under another.

Section 624.155(1)(a) separately incorporates specified unfair insurance practices, including provisions of section 626.9541(1)(i). A contract claim asks whether benefits were owed under the policy. A bad faith claim asks whether the insurer committed an actionable statutory violation causing damage. An incorrect denial can be a coverage dispute without automatically satisfying the bad faith standard.

What claim-handling conduct should you document?

Section 626.9541 identifies practices such as misrepresenting coverage-related facts or policy provisions, denying claims without reasonable investigation, and failing to explain a denial in relation to the policy and facts. Document the actual words, dates, information supplied and unanswered questions. These are issues to investigate, not automatic findings of bad faith.

A file should include the policy and endorsements, loss photographs, repair estimates, the insurer's written decision, information requests, delivery records and a dated communication timeline. Pair each alleged problem with evidence showing what happened. Section 624.155(1) does not require a general business practice for the ordinary civil remedy; punitive damages have a different rule.

What are Florida's claim-handling deadlines?

For residential property insurers, section 627.70131(1) requires review and acknowledgment within 7 calendar days after receiving a claim communication, unless payment occurs within that time or qualifying factors beyond the insurer's control prevent acknowledgment. The subsection does not apply to claimants represented by counsel except for necessary forms and instructions.

Under subsection (7), the insurer must pay or deny the claim or a portion within 60 days after receiving notice of an initial, reopened or supplemental claim, subject to qualifying exceptions. It must explain a payment or denial in writing by connecting policy provisions to facts or law. That subsection also covers specified commercial structural, contents and tenant claims involving premises of 10,000 square feet or less; it excludes policies covering nonresidential commercial structures or contents in multiple states.

These periods are subject to statutory tolling during mediation or contractual alternative dispute resolution. Another toll applies when requested material information is not supplied within 10 days after receipt of the request, provided the request was sent at least 15 days before the payment deadline; it ends upon receipt. Qualifying OIR orders can extend the payment period by no more than 30 days. Fraud, lack of cooperation or intentional misrepresentation that reasonably prevents compliance can also qualify as beyond-control factors. Failure to comply with the payment-decision subsection alone does not establish a private cause of action.

How do you challenge a denial or underpayment?

Identify whether the dispute concerns coverage, the cause of damage, repair scope or price. Submit specific contrary evidence and request a written response addressing it. For a practical letter structure, see how to contest a denied Florida property claim. Reconsideration does not itself satisfy statutory litigation notices.

DFS mediation under section 627.7015 is available for eligible personal-lines and commercial-residential disputes. It is nonbinding unless the parties reach a binding settlement. The insurer pays conference costs, with a policyholder no-show/rescheduling exception. A written settlement can be rescinded within 3 business days unless the policyholder has cashed or deposited the settlement check. Eligibility exclusions include agreed facts establishing no coverage, a reasonable basis to suspect fraud, a reasonable basis to believe an intentional material misrepresentation caused denial of the entire payment request, losses not complying with section 627.70132 and disputes below $500 unless the parties agree.

Appraisal depends on the policy and addresses valuation disputes. It differs from mediation and does not establish the adverse breach adjudication required by section 624.1551. Consider the policy appraisal procedure before choosing an escalation path. DFS's standard mediation intake excludes claims already in appraisal or litigation; the statute separately permits court referrals.

What notice is needed before suing under the policy?

Where section 627.70152 applies, the claimant must submit the prescribed DFS notice of intent to initiate litigation after the insurer's coverage determination and at least 10 business days before filing suit. A counterclaim is expressly exempt. After a denial, the notice includes an estimate of damages if known; for other alleged acts or omissions, it includes an itemized demand and disputed amount.

The insurer must respond within 10 business days after receiving the notice. Following a denial, it can accept coverage, maintain the denial or elect reinspection. Reinspection gives it 14 business days after that response to reinspect and accept or deny. Other disputes can lead to a settlement offer or required appraisal or alternative dispute resolution. Additional statutory waiting periods may apply; missing a required notice or filing prematurely can produce dismissal without prejudice.

What is the civil remedy notice and 60-day cure period?

A civil remedy notice, or CRN, under section 624.155(3) is separate from the policy-suit notice. It must use the DFS form and specifically identify the statutory language allegedly violated, facts and circumstances, involved individuals, relevant policy language and intent to perfect the statutory remedy. The department and authorized insurer must receive the required notice; DFS transmits it to the insurer's designated email address.

The insurer has 60 days after receiving the notice from DFS to cure. No action lies if it pays the damages or corrects the circumstances within that period. An informal complaint or demand letter does not replace this process. In a residential property claim, no CRN may be filed within 60 days after any party invokes appraisal. Coordinate both notice systems rather than treating them as interchangeable.

Must you win the property-insurance contract case first?

For extracontractual damages under section 624.155(1)(b), section 624.1551 requires an adverse adjudication by a court that the property insurer breached the contract and a final judgment or decree against it. A paid appraisal award and an accepted offer of judgment do not qualify. A difference between the insurer's appraiser's final estimate and the award can be evidence, but it cannot establish this prerequisite on its own.

What did HB 837 change in 2023?

HB 837 enacted standards now in section 624.155(5): negligence alone is insufficient, and insureds, claimants and representatives must act in good faith in providing information, demands, deadlines and settlement efforts. Their failure can justify a reasonable reduction of damages; it does not create a separate cause of action against them.

The law also added a 90-day tender protection for liability insurance claims. That is not an extra 90-day decision period for your own first-party property-damage claim. Do not confuse it with the property's 60-day decision rule or the CRN cure period.

What damages and attorney fees are available?

Section 624.155(11) permits reasonably foreseeable damages caused by a specified violation, potentially exceeding policy limits. Section 624.155(7) provides court costs and reasonable attorney fees following adverse adjudication at trial or appeal. For valuation, see what a Florida bad faith claim may be worth.

Punitive damages require acts frequent enough to show a general business practice. Those acts must also be willful, wanton and malicious, or in reckless disregard of an insured's rights; the statute separately addresses life-insurance beneficiaries. A claimant must advance discovery costs, awarded to the insurer if punitive damages are not awarded (section 624.155(8)).

SB 2-A in 2022 removed the former one-way attorney-fee entitlement for property-policy suits; HB 837 in 2023 repealed sections 627.428 and 626.9373. The distinct bad faith fee provision remains. Section 86.121's declaratory-action fee remedy excludes residential and commercial property policies. Check policy issuance and renewal dates, the loss date and applicable amendments for older disputes.

What should you preserve while deciding next steps?

Under current section 627.70132, initial and reopened claims must be reported within 1 year after the date of loss, and supplemental claims within 18 months. A reopened claim was previously closed and is reopened at the insured's request for additional costs for previously disclosed damage; a supplemental claim concerns additional loss or damage from the same peril after adjustment or costs incurred during repairs on a timely open claim. Combat-deployment tolling and special condominium loss-assessment rules are exceptions. These are reporting limits, not lawsuit deadlines; do not assume correspondence pauses either.

Check the insurer and policy type too: Citizens has a separate statutory immunity framework under section 627.351(6)(s), so private-insurer remedies should not be assumed to transfer unchanged. This overview addresses Florida property coverage rather than health, auto or federal flood disputes. A property-insurance lawyer can review a specific claim's evidence, notices and applicable prerequisites.

Sources

• Section 624.155, Florida Statutes
• Section 624.1551, Florida Statutes
• Section 626.9541, Florida Statutes
• Section 627.70131, Florida Statutes
• Section 627.70132, Florida Statutes
• Section 627.70152, Florida Statutes
• Section 627.7015, Florida Statutes
• Section 86.121, Florida Statutes
• Section 627.351, Florida Statutes
• Florida DFS mediation programs
• Florida DFS mediation eligibility and requests
• Florida Insurance Consumer Advocate: appraisal and claim professionals
• SB 2-A (2022), enrolled text
• HB 837 (2023), enrolled text