Experiencing a denied insurance claim can leave you feeling frustrated and unfairly treated. You might suspect that your insurer is not acting in good faith, but what exactly does that mean, and is there legal recourse for policyholders in Florida? Let’s delve into the concept of bad faith and how Florida’s laws protect you in such situations.
Understanding Bad Faith
In simple terms, bad faith occurs when an insurance company intentionally acts unfairly or dishonestly, failing to meet its legal or contractual obligations to policyholders. This can include misleading policyholders, entering agreements without the intention or ability to fulfill them, or violating basic standards of honesty in dealing with clients. Bad faith actions can lead to significant complications and financial losses for policyholders.
The Good News: Florida’s Bad Faith Insurance Law
Florida Statute 624.155 serves as a safeguard for policyholders facing bad faith practices from insurers. Under this statute, bad faith is defined as when an insurer fails to attempt in good faith to settle claims, does not make claims payments accompanied by a statement of coverage, or fails to promptly settle claims when the obligation to do so is clear.
The Implied Covenant of Good Faith and Fair Dealing
Most states recognize the implied covenant of good faith and fair dealing, which is breached by acts of bad faith. This legal principle can be invoked in lawsuits against insurers for failing to uphold their end of the insurance contract. Bad faith may also serve as a defense in contract-related lawsuits.
Elements of Bad Faith Insurance in Florida
So, what constitutes a bad faith claim against an insurer in Florida? Here are some common examples:
- Altering an application without the policyholder’s knowledge to avoid paying out claims
- Denying claims without conducting a proper investigation
- Making misrepresentations of facts to justify lower settlements
- Delaying or failing to investigate claims promptly
- Failing to communicate timely with policyholders
- Neglecting to notify policyholders of necessary additional information for their claims
These practices, among others, can form the basis for a bad faith claim under Florida law.
Bad Faith in Property and Automobile Insurance
Bad faith can manifest in various types of insurance policies, including property (homeowners) and automobile insurance. In property insurance, bad faith may involve unjustly denying claims for damages to dwellings, other structures, personal property, or loss of use. Similarly, bad faith in automobile insurance can occur through improper denials of liability or uninsured/underinsured motorist claims, delays in processing claims, or offering inadequate settlements.
How to Pursue a Bad Faith Claim in Florida
Filing a bad faith claim against an insurer can be challenging, as insurance companies often have legal teams to contest such claims. To navigate this process effectively, it’s crucial to seek assistance from experienced legal professionals who understand the complexities of bad faith law in Florida.
At The Law Office of Matthew A. Rubner, our team is dedicated to protecting your rights and advocating for fair treatment by insurance companies. If you believe you’ve been a victim of bad faith practices, don’t hesitate to reach out to us for a free consultation and case evaluation.
Contact Matt today at 434-ASK-MATT to discuss your situation and explore your legal options. We’re here to help you fight for the justice and compensation you deserve.
Matthew Rubner