Insurance protects you when the unexpected happens. For example, homeowners’ insurance helps if someone is injured on your property, while health insurance helps cover medical bills. Insurance companies have a duty to investigate claims filed by their insured and accident victims. They have the right to deny invalid claims.
However, some insurance companies act in bad faith to deny valid claims and undervalue damages. When an insurance company acts in bad faith, it may be liable for damages for a bad faith claim. Read on to learn more about bad faith claims.
What Is Meant By “Bad Faith” Insurance Claims?
Bad faith occurs when an insurance company unreasonably denies, delays, or undervalues a valid claim. This can include failing to settle a claim when it’s clear they should or acting dishonestly during the process.
That does not mean an insurance company must accept and pay all claims. For example, an insurance company may deny a claim because the insurance policy does not cover the circumstances that led to the loss. The company could deny a claim when there is insufficient evidence that the insured caused the loss.
Determining whether an insurance company acted in bad faith is case-specific. You need to examine the factors of the case to determine if bad faith existed.
Examples of Bad Faith Insurance Practices in Florida
Bad faith insurance practices can take many forms.
Examples of bad faith include, but are not limited to:
- Denying claims without valid justification
- Failing to request or communicate needed claim information
- Ignoring calls, emails, or delays in responses
- Misrepresenting policy terms or the law
- Delaying investigations or claim processing
- Offering unreasonably low settlements
- Discouraging legal representation
- Delaying or withholding agreed-upon payments
- Refusing to defend a covered lawsuit
- Changing policy terms after a claim is filed
- Demanding excessive or unnecessary documentation
- Rejecting reasonable settlement offers despite clear liability
Contact an attorney immediately if you believe you are the victim of bad faith insurance practices. You could be entitled to compensation for damages. However, the Florida statute of limitations restricts your time to file a bad faith claim against an insurance company.
What Damages Can I Receive for a Bad Faith Insurance Claim in Florida?
Florida law allows you to sue an insurance company for bad faith, but you must prove it acted intentionally. You don’t need to show a pattern—one intentional act of bad faith in your case is enough to seek compensation.
Damages for a bad faith claim can include compensation for economic and non-economic damages.
Examples of damages in a bad faith insurance claim include, but are not limited to:
- The value of the initial insurance claim
- Out-of-pocket expenses
- Interest on the amount of the initial insurance claim
- Attorneys’ fees and costs for filing a bad-faith insurance claim
- Additional damages you incurred because of the insurance company’s bad faith
- Loss of earnings, if applicable
- Emotional distress, mental anguish, and anxiety caused by the company’s actions
The amount of a bad faith claim depends on the unique circumstances and factors of the case. An attorney can discuss how much your case is worth during a free case review.
We Handle All Types of Bad Faith Insurance Claims
Bad faith insurance practices are not limited to a specific type of claim.
An insurance company may act in bad faith in all types of claims, including claims related to:
- Car insurance claims
- Health insurance
- Fire insurance
- Homeowner’s insurance
- Life insurance
- Business liability insurance
- Hurricane insurance
- Personal injury protection (PIP) insurance
- Flood and wind insurance
- Disability insurance
- Workers’ compensation insurance
- Renter’s insurance
- Commercial insurance
- Business liability insurance
- Property damage insurance
If you have questions about how an insurance company processes a claim, please contact an attorney for help. You do not have to deal with the insurance company alone.
How Long Do I Have to File a Bad Faith Lawsuit in Florida?
In Florida, the statute of limitations for filing a bad faith insurance lawsuit varies. Statutory first-party bad faith claims typically have a five-year deadline, while third-party claims may follow a shorter timeline depending on the nature of the case.
To protect your rights and ensure your case is filed on time, contact an experienced Florida bad faith insurance lawyer as soon as possible.
Schedule a Free Consultation with Our Tampa Personal Injury Lawyers
Has the insurance company delayed, denied, or underpaid your claim without a valid reason? If so, you may be the victim of bad faith insurance practices. Our experienced Tampa bad faith insurance lawyers at Winters & Yonker Personal Injury Lawyers are here to help.
We’ll thoroughly review your case, explain your legal options, and fight to hold the insurance company accountable. Call today at (813) 223-6200 to schedule a free consultation with an attorney and take the first step toward getting the compensation you deserve.
