Debunking Common Myths About Insurance Bad Faith Claims in Florida
Insurance is meant to protect the policyholder when things go wrong, and in many cases, this is how it is. However, some policyholders have a bad experience with their insurers after filing or facing a claim. When an insurance company delays, underpays, or rejects a valid claim, the issue of insurance bad faith may arise. In Florida, if an insurer fails to act reasonably and honestly toward its policyholder or does not duly consider the policyholder’s interests, the policyholder may be eligible to file an insurance bad faith claim and seek compensation for damages caused by the insurer’s conduct. However, widespread myths about these claims often cause confusion among policyholders. Below, we debunk some of the most common myths about insurance bad faith claims in Florida.
Myth #1: Insurance Bad Faith Only Applies To Extreme Misconduct
Some people believe that they can only file a bad faith claim if the insurance company engaged in extreme misconduct. This is not true. According to Florida Statutes section 624.155, insurance bad faith arises when an insurance company fails to act fairly and honestly towards a policyholder. This can involve more subtle actions such as unreasonably delaying a claim, not conducting a proper investigation, or undervaluing a claim.
Myth #2: A Claim Denial Automatically Means You Have a Claim
Not all denied insurance claims equal bad faith. Some claims are rejected due to genuine reasons, such as lack of supporting evidence or policy exclusion. In Florida, for a situation to rise to the level of insurance bad faith, an insurer must have denied a claim without a reasonable basis. You may also have a bad faith claim if the insurance company cannot provide a clear explanation for the denial.
Myth #3: It Is Impossible To Win an Insurance Bad Faith Claim
Insurance companies are well-funded, which can make policyholders feel discouraged. However, you should not assume that you cannot win your case. Many bad-faith claims are resolved successfully without even the need to involve the court. Just ensure you have clear evidence of unfair or dishonest claim handling and any other necessary evidence.
Myth #4: Handling Your Insurance Bad Faith Claim Alone Is Fine
Some people believe that they can handle a bad-faith claim on their own without legal assistance. While this might seem cost-effective, the truth is that it can cost you a lot in the end. Insurance bad faith cases are complex, involving strict deadlines and procedural rules. For example, Florida law generally requires that you first file a Civil Remedy Notice before proceeding with a first party bad faith lawsuit. An experienced insurance bad faith attorney can help ensure your case is handled correctly. They can help protect your legal rights.
Contact Us for Legal Help
If you believe you have a valid insurance bad faith claim, contact our experienced Tampa insurance bad faith lawyers at Gunn Law Group, P.A., today for legal help.
Source:
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0624/Sections/0624.155.html
