Most Florida property managers know what to do when an insurer accepts a claim. Far fewer know what leverage they have when an insurer stalls, underpays, or denies without reasonable basis. Florida Statute § 624.155 is one of the most powerful policyholder tools in any state — but using it requires knowing what bad faith actually looks like, how to trigger the process, and when professional help becomes necessary.
This guide covers the legal definition of bad faith in Florida, the Civil Remedy Notice requirement, the 90-day cure window, and the damages available when insurers don't play by the rules.
What Constitutes Bad Faith Under Florida § 624.155
Florida law defines insurer bad faith broadly. Under § 624.155, an insurer commits bad faith when it fails to:
- Attempt in good faith to settle claims when it could and should have done so, given the probability of liability and the severity of the claim
- Promptly settle after liability has become reasonably clear
- Act promptly in responding to communications regarding claims
- Conduct a reasonable investigation before denying a claim
- Affirm or deny coverage within a reasonable time after receiving proof of loss
- Avoid misrepresenting policy facts or provisions
The key phrase throughout is "reasonably." Insurers have discretion in evaluating claims — but that discretion has limits. When an insurer's conduct falls outside what a reasonable insurer would do under the same circumstances, bad faith exposure begins.
The Civil Remedy Notice: Your Required First Step
Florida's bad faith statute requires a specific procedural step before you can file suit: the Civil Remedy Notice (CRN). This is a mandatory pre-suit notice filed with the Florida Department of Financial Services (DFS). You cannot file a bad faith lawsuit in Florida without first filing a CRN and allowing the insurer time to respond.
The CRN serves several purposes. It notifies the insurer precisely which conduct you claim constitutes bad faith, gives the DFS visibility into insurer behavior patterns across the state, and creates the formal paper trail that supports your eventual lawsuit if the insurer doesn't cure.
What Must Be in the CRN
The Civil Remedy Notice must specify:
- The name of the insurer and the policy number
- The specific statutory provisions the insurer allegedly violated
- A detailed description of the acts or omissions constituting the violation
- The specific damages suffered as a result
A vague CRN is not the same as no CRN — but it can weaken your position if the insurer argues it didn't have adequate notice to cure. Be specific about what the insurer did wrong and when.
The 90-Day Cure Window
Once you file the CRN with the DFS, the insurer has 90 days to cure the alleged violation. Curing typically means paying the full policy limits, paying the amount of a judgment, or otherwise remedying the specific conduct identified in the notice.
The 90-day cure period is not a negotiation window — it is a legal grace period. You cannot file a bad faith lawsuit during these 90 days. If the insurer cures within 90 days, your bad faith claim is extinguished. Document everything during this window: every communication, every payment (or lack thereof), every adjuster contact. If the insurer pays but pays insufficiently, the question of whether the violation was "cured" may itself become a dispute.
If the insurer does not cure within 90 days, you may proceed with a civil action under § 624.155. At that point, the bad faith claim is ripe and the full range of extra-contractual damages becomes available.
Damages Available in a Bad Faith Action
This is where Florida's bad faith statute has real teeth. In a successful bad faith action, policyholders can recover:
- Extra-contractual damages: damages beyond what the policy covers, including the full amount of a judgment even if it exceeds policy limits
- Consequential damages: financial harm caused by the delay in payment — lost rental income beyond the loss of rents sublimit, additional repair costs from deterioration, business interruption
- Attorneys' fees: under § 627.428, Florida policyholders who prevail against insurers are entitled to recover attorneys' fees, making it economically viable to pursue even mid-size bad faith claims
- Interest: on delayed payments, calculated from the date payment was due
The attorneys' fee provision is particularly significant. It means that qualified bad faith attorneys will often take Florida property cases on contingency — you don't pay unless you win. This changes the calculus on whether escalation is worth it.
Bad faith claims are strongest when: (1) the insurer denied a claim where liability was clear and well-documented; (2) the insurer ignored repeated written communications; (3) the insurer failed to investigate within Florida's statutory timeframes; or (4) the insurer's estimate was dramatically below multiple independent contractor bids without a credible explanation. Document all of these conditions throughout the claims process — not after the denial.
When to Escalate to a Bad Faith Attorney
Not every delay or low estimate rises to bad faith. Before escalating, ask:
- Did the insurer fail to acknowledge or investigate within statutory timeframes?
- Did the insurer deny coverage without a reasonable investigation?
- Is the insurer's estimate dramatically lower than independent contractor bids, with no credible basis for the difference?
- Has the insurer failed to pay or deny within 90 days of receiving your complete proof of loss?
- Is the insurer misrepresenting what the policy covers?
If the answer to two or more of these is yes, a consultation with a Florida bad faith attorney is warranted. Most offer free initial consultations, and given the attorneys' fee shifting provision, the economics of taking your case are favorable for qualified attorneys if the facts support bad faith.
For complex claims involving bad faith across multiple properties — common after major hurricanes — a public adjuster can also help document the pattern of conduct that supports a bad faith finding. See our guide to hiring a Florida public adjuster for what to expect from that process.
Track every insurer communication and deadline in LossHQ
The evidence for a bad faith claim is built during the claims process — not after. LossHQ helps you log every adjuster contact, track the 14-day and 90-day response windows, and keep a timestamped record of the insurer conduct that matters if you need to escalate.
Start Free — No Credit Card →The Bottom Line
Florida's bad faith statute is not just a legal theory — it is a practical tool that changes the negotiating dynamics of any disputed claim. When an insurer knows you understand § 624.155 and are prepared to file a Civil Remedy Notice, the incentive to drag out or undervalue your claim diminishes significantly. Property managers who document the process, track statutory deadlines, and escalate promptly when warranted recover more, faster.
Understanding bad faith is part of understanding Florida's property insurance landscape as a whole. The system is adversarial by design — knowing your rights is how you compete in it.