If you think your insurance company has treated you unfairly, it may be acting in bad faith.
If proven, the insurance company may have to may pay you damages in excess of the policy limits, including interest on unpaid benefits, costs and attorney's fees. The insurance company may also have to pay punitive damages.
What constitutes insurance bad faith?
Florida's insurance bad faith law is designed to curb unfair practices in the insurance industry. A number of actions may be considered as acting in bad faith. Here are some examples:
- Attempting to settle your claim based on an application it altered without your knowledge or consent
- Making material misrepresentations to get you to settle your claim on less favorable terms
- Misrepresenting policy provisions
- Failing to properly investigate your claim
- Failing to promptly acknowledge and act upon communications you send to the insurance company
- Denying claims without a reasonable investigation
- Failing to provide information that a claim is being investigated, affirmed or denied within 30 days of you providing proof of loss
- Failing to promptly provide a reasonable explanation in writing for a denial or offer in compromise
- Failing to promptly notify you if additional information is needed to process your claim
- Failing to pay undisputed amounts within 90 days
The distinctions between what is a legal denial of your claim by your insurance company and what is insurance bad faith can be subtle. Only an experienced insurance lawyer can advise you if you have a valid claim.