Bad Faith and Insurance Claims
Florida is a state prone to hurricane damage each year due to its proximity to the Gulf of Mexico, the Atlantic Ocean, and the Caribbean Ocean, along with the hurricanes and tropical storms that regularly form in these bodies of water. Because of this, Florida has some of the highest insurance claims in the country.
When a person insures his home and other personal property, he tends to assume that since he has faithfully paid, his insurance claim will be satisfied without a problem. However, some insurance companies do not always act in good faith and will complicate an already stressful situation due to unfair insurance practices.
What is bad faith?
After you file your Florida insurance claim, your insurer may tell you that your policy is ambiguous or open to several possible meanings, or that the policy does not cover the type of property for which you are making a claim. Another reason your claim may be denied is because the insurance company may claim that the property was not damaged, that the damage was the result of the owner’s negligence, or that the damage was the result of another reason not covered by the insurance policy. sure.
Insurance companies are required to act in good faith and in a timely manner during this process. Unfortunately, sometimes an insurer will delay payment or settlement of a claim or even violate the laws of the state of Florida. When this happens they are acting in bad faith.
Some types of bad faith an insurer may engage in may include unfair claims settlement practices or a refusal to insure for discriminatory reasons.
Unfair claims settlement practices can mean that an insurance company:
• Failure to adopt or implement standards for the proper investigation of claims,
• Misrepresentation of facts or provisions of insurance policies,
• Deny claims without conducting a reasonable investigation,
• Failure to adequately explain the information in the policy, or
• Failing to pay any undisputed amount of full or partial benefits promptly and in a timely manner.
It is illegal for an insurer to refuse to insure a person based on their race, color, creed, marital status, sex, or national origin. Also, an insurer cannot deny a person based on where they live, their age, or where they work.
There are several laws within the Florida Revised Statutes that relate to bad faith insurance claims and illegal business practices.
Florida Statute § 626.9541(1)(i) – Engaging in unfair claims settlement practices;
Florida Statistical § 626.9541(1)(o) – Unlawful dealing in premiums;
Florida Statistical § 626.9541(1)(x) – Refusal to insure for discriminatory reasons;
Florida Statistical § 626.9551 – Requirements to have a particular agent or insurer not allowed;
Florida Statistical § 627.7283 – Refund of premium required for canceled insurance policies.
What should you do if your insurance company denies your claim?
If you believe your insurance company is acting in bad faith regarding an insurance policy claim, the first step many take is to contact an experienced insurance attorney. An insurance attorney can help you decide the proper steps to take when dealing with an insurance company that is acting in bad faith.
Your insurance attorney may suggest that you file a civil lawsuit against your insurer for damages. When you file a lawsuit for damages, you may be able to receive all of your policy benefits, court costs, and attorney fees.
With competent legal counsel and a firm understanding of how the law requires your insurance company to act, the Florida property damage claims process will be much easier to navigate, increasing your chances of obtaining a favorable outcome and just.