How To Prove A Florida Insurance Bad Faith Claim
In Florida, a claim of Insurance Bad Faith is defined as:
Bad faith insurance refers to an insurer’s attempt to renege on its obligations to its clients, either through refusal to pay a policyholder’s legitimate claim or investigate and process a policyholder’s claim within a reasonable period.
It simply means:
A party may sue an insurance company when it refuses to pay a legitimate claim or handle a claim in a timely manner.
There are 5 elements of the claim:
- Element 1. A policyholder’s claim was meritorious. That is, an insurer was contractually liable under an insurance policy. A policyholder’s claim was valid because the insurance company was legally obligated to cover the loss as outlined in the insurance policy, which is an important factor in proving that the insurer acted in bad faith by denying the claim.
Facts that might support this element look like:
* The policyholder submitted a claim for damages that fell within the coverage limits specified in the insurance policy.
* The insurer received all necessary documentation and evidence supporting the policyholder’s claim, including photographs and repair estimates.
* The insurer failed to provide a reasonable explanation for the denial of the claim, despite clear policy language supporting coverage.
* The policyholder had consistently paid premiums on time and maintained the policy in good standing prior to the claim.
* The insurer did not conduct a thorough investigation of the claim, relying instead on a cursory review of the submitted materials. - Element 2. There is a determination of the extent of the policyholder’s damages. In an insurance bad faith claim, determining the extent of the policyholder’s damages means figuring out how much financial loss or harm the policyholder has suffered due to the insurance company’s unfair actions or refusal to pay a valid claim.
Facts that might support this element look like:
* The policyholder submitted a detailed claim outlining damages totaling $50,000, supported by repair estimates and invoices.
* An independent adjuster evaluated the damages and confirmed that the policyholder’s losses were consistent with the reported incident.
* The insurance company received multiple expert opinions indicating that the damages were extensive and warranted full coverage under the policy.
* The policyholder provided photographic evidence of the damages, which was acknowledged by the insurance adjuster during the assessment.
* The insurer’s own internal documents reflected an acknowledgment of the policyholder’s damages exceeding the policy limits. - Element 3. The insurer was not attempting in good faith to settle claims when, under all circumstances, it could and should have done so. The insurer failed to honestly try to resolve claims when it had the opportunity and obligation to do so, showing a lack of fairness and responsibility in handling the situation.
Facts that might support this element look like:
* The insurer consistently delayed processing the claim, ignoring multiple requests for updates from the policyholder.
* Despite clear evidence of liability, the insurer offered a settlement amount significantly lower than the damages incurred.
* The insurer failed to conduct a thorough investigation, relying solely on the initial report without considering additional evidence provided by the claimant.
* The insurer did not respond to the claimant’s reasonable settlement proposals within the industry-standard timeframe.
* Internal communications revealed that the insurer prioritized profit over fair settlement practices, indicating a lack of good faith. - Element 4. The policyholder filed the required 60 days’ written notice of the violation. The policyholder officially informed the insurance company in writing, within 60 days, about the issue or violation they experienced, which is an important step in proving that the insurer acted in bad faith.
Facts that might support this element look like:
* The policyholder submitted a written notice of the violation to the insurer on January 15, 2023, which was within the required 60-day period.
* The notice included specific details about the alleged violation, ensuring compliance with the policy’s notification requirements.
* The insurer acknowledged receipt of the written notice in a response dated January 20, 2023.
* The policyholder maintained a record of all correspondence related to the violation, demonstrating timely communication.
* The insurer did not dispute the timeliness of the notice in subsequent communications with the policyholder. - Element 5. The policyholder suffered damages as a result of the insurer’s failure to settle the claim. The policyholder experienced financial losses because the insurance company did not handle their claim properly, refusing to settle it fairly, which can be seen as acting in bad faith.
Facts that might support this element look like:
* The policyholder incurred significant legal fees due to the insurer’s refusal to settle the claim within a reasonable timeframe.
* The policyholder experienced a loss of income as a direct result of the insurer’s failure to resolve the claim promptly.
* The insurer’s delay in settling the claim caused the policyholder to suffer emotional distress and anxiety.
* The policyholder was forced to accept a lower settlement amount due to the insurer’s inaction, resulting in financial hardship.
* The insurer’s failure to negotiate in good faith led to prolonged litigation, exacerbating the policyholder’s damages.
(See Florida Statute 624.155. Blanchard v. State Farm Mut. Auto. Ins., 575 So. 2d 1289, 1291 (Fla. 1991). Myers v. Provident Life and Accident Ins. Co., 564 F. Supp. 3d 1157 – Dist. Court, MD Florida 2021.)
If you’re in court without a lawyer and plan to assert a Claim of Insurance Bad Faith, having a Personal Practice of Law at Courtroom5 is essential. You’ll need to make informed decisions about what to file at each phase of your case and prepare legal documents that are supported by thorough legal research and a strong analysis of the facts. Equip yourself with the tools and knowledge to effectively navigate your legal journey.
Prove Your FL Insurance Bad Faith Claim
U.S. Civil Cases Only