What is the Time Limit for Bad Faith Demand in Florida?

In Florida, bad faith insurance law is governed by Fla. Stat. § 624.155. If your insurance company fails to fulfill its obligations to you as the policyholder in a fair and reasonable manner, it may be acting in bad faith. Bad faith encompasses the following:

• Failing to attempt to settle a claim in good faith when it could have done so had it acted fairly and honestly towards its insured and with due regard for their interests.
• Failing to conduct a reasonable investigation based upon all available information.
• Refusing to settle the claim when it is clear that the insurer should have done so if it had acted fairly and honestly toward its insured and with due regard for their interests.

Time Limits and Bad Faith Demand in Florida 

Recent changes to legislation, specifically Florida Tort Reform HB 837, are having an effect on bad-faith lawsuits in Florida. One noteworthy change has to do with time limits.  

Per HB 837 and as outlined in Fla. Stat. § 624.155, “An action for bad faith involving a liability insurance claim, including any such action brought under the common law, shall not lie if the insurer tenders the lesser of the policy limits or the amount demanded by the claimant within 90 days after receiving actual notice of a claim which is accompanied by sufficient evidence to support the amount of the claim.”

Moreover, the reform stipulates that mere negligence alone is insufficient to constitute bad faith.

What this means is that insurers now essentially have a safe harbor from bad faith demands for 90 days from when the claim was filed. They can use these approximate three months to make a claim determination and cannot be accused of acting in bad faith during this time.

Is There a Statute of Limitations for Bad Faith Claims in Florida?

Another time limit to be aware of when it comes to bad faith demand in Florida is five years – that is the statute of limitations for how long policyholders have to make a bad faith claim against their insurer. 

Importantly, however, is that the statute of limitations may vary case by case. Some may be shorter. Consult with an insurance law attorney to discuss the specifics of your case as they relate to bad faith insurance law in Florida.

Contact Us at Kandell, Kandell & Petrie for Help

To learn more about bad faith demands in Florida and ask your questions about insurance law, contact our team at Kandell, Kandell & Petrie. We have more than 50 years of combined legal expertise and are here to ensure you receive the relief you deserve for your insurance claim in Florida.