Do I Have a Bad Faith Property Damage Claim in Florida?
Updated: Oct 11
When your insurer drags out a claim, ignores your calls, or pays far less than the repair estimates, it is natural to ask whether that is "bad faith." The honest answer is that it depends. Florida does allow policyholders to hold insurers accountable for unfair claim handling, but these claims follow strict steps, and recent reforms changed when and how they can be brought.
In this article
This article explains what bad faith means in plain words, how the civil remedy notice works, and what you can do now to protect your options.
What "bad faith" means for a homeowner
Your policy is a contract. Beyond paying what the contract covers, Florida law expects insurers to act fairly and honestly toward their insureds when settling claims (section 624.155(1)(b)1., Florida Statutes). A bad faith claim is a separate legal claim that the insurer fell short of that duty.
Under Florida's civil remedy statute, a person damaged by an insurer may sue if the insurer did not attempt in good faith to settle a claim when, under all the circumstances, it could and should have done so had it acted fairly and honestly toward its insured and with due regard for the insured's interests. The statute also covers making claim payments without a statement of the coverage the payment is made under, and, outside liability coverage, failing to promptly settle a claim under one part of the policy, once the obligation to pay is reasonably clear, in order to influence settlement under another part (section 624.155(1)(b)). It also covers violations of certain other listed insurance statutes (section 624.155(1)(a)). Those include Florida's unfair claim settlement practices, such as failing to adopt and implement standards for properly investigating claims; misrepresenting facts or policy provisions about the coverage at issue; failing to acknowledge and act promptly on claim communications; denying a claim without a reasonable investigation; failing to promptly explain in writing the policy basis for a denial or compromise offer; and failing to pay undisputed amounts under a property policy within 60 days after the insurer receives notice of a residential claim, determines the amount owed, and agrees to coverage (section 626.9541(1)(i)3. and 4., Florida Statutes).
Bad faith is different from a simple disagreement. An insurer can be wrong about the amount owed without acting in bad faith. Courts generally look at the whole picture of how the claim was handled.
First-party and third-party bad faith
A first-party claim involves your own coverage. For a homeowner, that usually means how your insurer handled your property damage claim.
A third-party claim usually arises when someone sues you, and your insurer fails to properly defend you or settle within your policy limits. This article focuses on first-party property claims, which work differently in several important ways.
Recent reforms changed the landscape
Florida's 2023 insurance reforms amended the bad faith statute (section 624.155, as amended by chapter 2023-15, Laws of Florida). If you read older articles online, some of what they say may no longer apply.
For property insurance, a 2022 law added a major step. A bad faith claim against a property insurer under section 624.155(1)(b) cannot proceed until the policyholder has established, through an adverse adjudication by a court, that the insurer breached the insurance contract, and a final judgment has been entered against the insurer. Accepting an offer of judgment or receiving payment of an appraisal award does not count. The difference between the insurer's appraiser's estimate and the appraisal award may be evidence of bad faith, but it does not by itself create a claim (section 624.1551, Florida Statutes). Separately, section 624.155 now says that in any bad faith action, mere negligence alone is not enough to show bad faith. It also says the policyholder and the policyholder's representatives have a duty to act in good faith in providing claim information, making demands, setting deadlines, and trying to settle, and a jury may reduce the damages awarded if they did not (section 624.155(5)).
Recent reforms also changed the attorney's fee rules for homeowners suing their insurers, including repeal of the prior one-way fee provisions (section 627.428(4), Florida Statutes). That affects the cost and risk of litigation, so it is worth discussing with a lawyer early.
The order of events usually matters
The Florida Supreme Court has long held that a first-party bad faith claim does not arise until the underlying claim for insurance benefits is resolved in the policyholder's favor (Blanchard v. State Farm Mutual Automobile Insurance Co., 575 So. 2d 1289 (Fla. 1991)). For property insurance, section 624.1551 now requires that resolution to be a court judgment finding the insurer breached the policy; an appraisal award or an accepted offer of judgment is not enough.
This means your first focus is usually the claim itself. Getting the property claim properly documented and resolved is often the foundation for anything that follows.
What a civil remedy notice is
Before a bad faith lawsuit under the statute can be filed, the Department of Financial Services and the insurer must be given 60 days' written notice of the violation, on a form the department provides. The department sends the notice to the insurer (section 624.155(3)(a), Florida Statutes). This is called a civil remedy notice.
Think of it as a formal warning. The notice must state with specificity the statute the insurer allegedly violated, including its specific language; the facts and circumstances giving rise to the violation; the name of any individual involved; any relevant policy language; and that the notice is given to perfect the right to pursue the civil remedy (section 624.155(3)(b)).
The insurer then has 60 days to cure the problem. If, within 60 days after the insurer receives the notice from the department, it pays the damages or corrects the circumstances giving rise to the violation, no action may be brought on that notice (section 624.155(3)(c)). In a residential property claim, a civil remedy notice also may not be filed within 60 days after any party invokes appraisal (section 624.155(3)(f)).
Practical steps to protect your options
Whether or not your situation ever becomes a bad faith claim, good records help. Here is where to start:
Keep a claim log. Write down every call, email, and inspection, with the date, the person's name, and what was said.
Get everything important in writing. Follow up phone calls with a short email confirming what you discussed.
Save every document. Keep the policy, declarations page, estimates, photos, payment letters, and denial letters together.
Respond promptly to reasonable requests. Your own cooperation may be considered later, so meet deadlines for documents and inspections.
Watch the claim deadlines. Florida generally requires notice of a new or reopened claim within 1 year of the date of loss, and a supplemental claim within 18 months (section 627.70132, Florida Statutes).
Do not file a civil remedy notice on your own without advice. Its content and timing can affect your rights later.
Why this is worth a careful look
Delay, low payments, and unanswered calls are frustrating. They may point to a problem worth addressing, but they do not automatically mean you have a bad faith claim. Each case turns on its own facts, the policy language, and the current law.
Kimberly Innocent spent years defending insurance companies before representing policyholders. That background helps her look at a claim file the way the other side will and give you a realistic view of your options. If your insurer has delayed, underpaid, or denied your claim, request a free claim review or call (954) 903-1737.
About the author. Kimberly Innocent is a Florida attorney who represents homeowners in first-party property insurance disputes, including claim delay, underpayment, and bad faith claims. She has practiced law since 2015 and has focused her practice on insurance litigation for over a decade.
This article provides general information and is not legal advice. Reading it does not create an attorney-client relationship. Every policy and claim is different; consult a lawyer about your specific situation.
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