You paid your premiums expecting your insurance company to be there when a loss occurred. Instead, your claim was denied, left unresolved, or paid for far less than you believe it was worth. Although these outcomes do not always amount to bad faith, the insurer’s reasons and how it handled the claim may tell a different story.

When a Claim Is Denied

An insurance company can deny a claim when the policy does not cover the loss or when an exclusion applies. A denial becomes more concerning when the insurer fails to conduct a reasonable investigation, misrepresents the policy, overlooks relevant evidence, or offers no meaningful explanation for its decision.

For example, an insurer may attribute roof damage entirely to wear and tear without properly considering evidence of wind damage. In another case, it may rely on an exclusion that does not fit the circumstances described in the claim.

A denial can be incorrect without amounting to bad faith. Florida law provides that negligence alone is not enough to establish bad faith. For a property-insurance bad-faith action seeking damages beyond the policy benefits, Florida Statutes § 624.1551 generally requires the insured to first establish through a final court judgment or decree that the insurer breached the insurance contract. An appraisal award, standing alone, does not satisfy that requirement.

When an Insurer Unreasonably Delays the Claim

Some insurance investigations take time, particularly after a hurricane or another event that produces thousands of claims. An insurer may need additional documents, inspections, estimates, or expert opinions before reaching a decision.

However, repeated requests for the same information, unexplained periods of silence, missed communications, and investigations that make little progress can raise legitimate concerns. Florida’s unfair claims practices law addresses conduct such as failing to acknowledge and act promptly on claim communications or denying coverage without conducting a reasonable investigation.

A delay can leave a homeowner unable to make repairs or a business unable to reopen. Keep a written timeline showing when you reported the loss, submitted documents, spoke with adjusters, and received responses. This record can show whether the insurer was actively investigating the claim or simply letting it stall.

When the Insurance Payment Is Too Low

An underpaid claim may be just as damaging as a denial. The insurer may agree that coverage exists but issue a payment based on an estimate that leaves out damaged rooms, uses unrealistic repair prices, or fails to account for the full scope of the loss.

Still, not every disagreement over value is bad faith. Repair costs, depreciation, deductibles, policy limits, and the cause of damage can create genuine disputes. Warning signs arise when an insurer ignores reliable estimates, applies policy provisions inconsistently, or refuses to explain how it calculated the payment.

Before signing a release or accepting a payment offered as a “full and final” settlement, review the estimate and accompanying correspondence carefully. Resolving the claim may affect your ability to seek additional benefits later.

What Does Florida Consider Bad Faith?

Under Florida Statutes § 624.155, an insurer can face liability when it fails to attempt a good-faith settlement under circumstances in which it could and should have settled the claim. Courts consider the claim as a whole rather than treating every mistake or unfavorable decision as bad faith.

Florida also imposes procedural requirements before certain bad-faith lawsuits can proceed. These can include filing a detailed Civil Remedy Notice and allowing the insurer 60 days to correct the stated violation. Because an incomplete or premature notice can create problems later, consider speaking with an experienced insurance attorney before starting that process.

Talk to Abraham Law Group About Your Insurance Claim

If your claim has been denied, delayed, or underpaid, save your policy, photographs, estimates, receipts, inspection reports, and every communication with the insurer. Avoid guessing about coverage or accepting a settlement before you understand what the policy provides.

The attorneys at Abraham Law Group understand insurance claims from both sides of the process. They can review how your claim was handled, explain whether you are facing a coverage dispute or potential bad-faith insurance claim, and determine what options remain available.

Contact Abraham Law Group today to find out whether your denied, delayed, or underpaid insurance claim is a coverage dispute or something more.