Florida Bad Faith Insurance Practices Demand Letter

When a Florida insurance company unfairly delays, denies, or underpays a valid claim, state law gives policyholders a powerful tool: the Civil Remedy Notice and bad faith demand letter. Florida Statute § 624.155 creates a statutory cause of action against insurers that fail to settle claims in good faith, and recent reforms under HB 837 (2023) have reshaped how these claims work. Before you can sue your insurer for bad faith, you must give the company a formal opportunity to fix the problem. A properly drafted demand letter starts the 60-day clock, preserves your legal rights, and signals to the carrier that you understand Florida's specific bad faith framework. Getting this letter right is critical to recovering damages beyond your policy limits.

Florida recognizes both common law third-party bad faith and statutory first-party bad faith claims. The primary statute, Fla. Stat. § 624.155, allows any person to bring a civil action against an insurer that fails to attempt in good faith to settle claims when, under all the circumstances, it could and should have done so had it acted fairly and honestly toward its insured. The statute incorporates the unfair claim settlement practices listed in Fla. Stat. § 626.9541(1)(i), which prohibits conduct such as misrepresenting policy provisions, failing to acknowledge communications promptly, denying claims without reasonable investigation, and failing to provide a reasonable explanation for denials. Before filing suit, the policyholder (or claimant) must file a Civil Remedy Notice of Insurer Violation (CRN) with the Florida Department of Financial Services and serve a copy on the insurer. The CRN must specify the statutory provisions allegedly violated, the facts supporting the violation, and the policy language at issue. The 2023 reforms (HB 837) added important requirements: mere negligence alone is no longer sufficient to constitute bad faith, and the claimant must show the insurer acted in bad faith under the totality of circumstances. The reforms also require the insured to act in good faith toward the insurer regarding furnishing information, making demands, setting deadlines, and attempting settlement. If the insurer pays the damages or corrects the violation within 60 days of filing the CRN, no bad faith action may proceed. If the insurer fails to cure, the claimant may sue and recover the full extent of damages caused by the violation, including amounts exceeding policy limits, court costs, and reasonable attorney's fees.

An effective Florida bad faith demand letter does double duty: it serves as the statutorily required Civil Remedy Notice and as a persuasive settlement tool. The letter should open by identifying the policy, claim number, and date of loss, then walk through a clear timeline of the insurer's conduct, including dates of communications, payments, denials, and any deadlines the company missed. Cite the specific subsections of Fla. Stat. § 626.9541(1)(i) and § 624.155 the insurer violated, and tie each cited provision to specific factual conduct. Attach key documents: the policy, proof of loss, correspondence, estimates, and any expert reports. State the precise amount needed to cure the violation, including the unpaid claim amount, interest, and consequential damages. Make clear that the 60-day cure period under § 624.155(3) has begun and that failure to resolve the claim will result in litigation seeking extra-contractual damages, attorney's fees, and costs. Tone matters: Florida courts and juries respond to professional, fact-driven letters rather than emotional accusations. Demonstrating that you (the insured) have cooperated fully, provided requested documentation, and acted in good faith strengthens your position under HB 837's mutual good faith requirement. File the CRN electronically through the Florida Department of Financial Services portal and keep proof of service. A well-prepared letter often prompts payment within the cure window because the carrier knows that ignoring it exposes them to liability beyond policy limits.

The Civil Remedy Notice must be filed electronically with the Florida Department of Financial Services through its online CRN system, and a copy served on the insurer. The 60-day cure period begins on the filing date. If the dispute involves amounts at or under $8,000, Florida small claims court (county court) is an option, with filing fees typically ranging from $55 to $300 depending on the amount. Larger disputes proceed in county or circuit court based on the amount in controversy. Florida's statute of limitations for breach of insurance contract is generally five years, while statutory bad faith actions must be brought within the limitations period applicable to the underlying contract. Property insurance claims have additional pre-suit notice requirements under Fla. Stat. § 627.70152.