How Long Do You Have To File a Bad Faith Claim in Florida?

Sometimes, insurance companies act unfairly or wrongfully deny claims. If this has happened to you, you may be eligible to file a bad faith claim and seek compensation. One of the most vital things to understand if your insurance company has acted in bad faith is how long you have to take legal action. Florida law imposes strict deadlines for filing an insurance bad faith claim, and failing to adhere to the law can mean losing your right to compensation. Below, we look at the time limits for filing a bad faith claim in Florida, notice requirements, and how to protect your rights. This article is intended to provide general background information on the time-limits that may apply to your potential claims. Insurance bad faith law is a complicated area, and the analysis of when a particular statute of limitations begins to run is not always straightforward. If you think you may have a claim of Insurance Bad Faith, you should consult with an experienced Florida Bad Faith Attorney, like the attorneys at Gunn Law Group, without delay.

Statute of Limitations for Bad Faith Claims in Florida

In Florida, insurance policies are considered contractual agreements between insurers and insureds. Generally, if an insurance company acts in bad faith, that is treated as a breach of contract. Such cases have a five-year statute of limitations. This means you generally have five years from when your claim accrued to file it.

So, when does an insurance bad faith claim accrue? In Florida, a bad faith claim generally accrues after there has been a determination of liability and the extent of damages, and the insurer failed to settle the claim or act in good faith. Once your case is over, the clock starts ticking.

Notice Requirements

Under Florida law, specific notice requirements must be met before you can file a claim for statutory bad faith. According to Florida Statutes section 624.155, you must provide written notice of the violation to your insurance company and the Florida Department of Financial Services (DFS) before suing. The notice must contain, among others, the following information;

• The statute that the insurer allegedly violated
• The facts and circumstances giving rise to the violation
• The name of the person involved in the violation

Once you send the notice, your insurance company has 60 days to fix the problem or “cure.” If your insurer corrects the issue within this time, you may not have grounds to proceed with your claim. If they fail to cure, you may have grounds to proceed to file a lawsuit.

Claims of insurer bad faith arising under the common law are not subject to the notice requirements of Florida Statutes section 624.155.

The Safe Harbor

In 2023, Florida passed HB 837. This bill brought sweeping reforms, and eliminated many rights of consumers under Florida law. The changes to section 624.155, among other things, created a safe harbor from bad faith liability for insurance companies. If an insurer pays the lesser of the amount demanded by the plaintiff or the policy limits within 90 days of receiving notice of a claim along with “sufficient evidence to support the amount of the claim,” you cannot proceed with your bad faith claim.

How To Protect Your Rights

Here are steps you can take to protect your rights if you have been a victim of insurance bad faith;

• Act fast
• Maintain detailed records
• Work with a skilled attorney

An attorney can guide you through the complex legal process, protect your rights, and maximize your recovery.

Contact Us for Legal Help

If you’ve been a victim of insurance bad faith, contact our skilled Tampa insurance bad faith lawyer at Gunn Law Group, P.A. for legal help.

Source:

flsenate.gov/Session/Bill/2023/837/BillText/er/PDF