Florida Insurance Bad Faith Demand Letter

Sample Language

[Your Name]
[Your Address]
[City, State, ZIP]

[Date]

[Insurance Company Name]
[Claims Department / Legal Department]
[Address]

RE: Notice of Bad Faith - Formal Demand for Payment
Policy No.: [POLICY NUMBER]
Claim No.: [CLAIM NUMBER]
Date of Loss: [DATE]
Insured: [YOUR NAME]

Dear Claims Manager / Legal Counsel:

This letter constitutes formal notice of your bad faith handling of my insurance claim in violation of Florida Statute § 624.155, § 627.70131, and common law duties of good faith and fair dealing.

CLAIM BACKGROUND:

On [DATE OF LOSS], I suffered [describe covered loss - e.g., "catastrophic Hurricane damage to my home," "total vehicle loss in accident," "major water damage from pipe burst"]. I timely reported the claim on [CLAIM DATE] and have continuously cooperated with your investigation.

My policy, number [POLICY NUMBER], provides [$ COVERAGE LIMIT] in coverage for [covered peril]. The loss clearly falls within covered perils with no applicable exclusions. Despite clear coverage and overwhelming evidence of damages, you [denied the claim / offered grossly inadequate settlement / delayed payment for [X] months].

YOUR BAD FAITH CONDUCT:

1. Failure to Investigate (§ 627.70131): You failed to complete investigation within 90 days of receiving proof of loss on [DATE]. You ignored my submitted evidence including [contractor estimates, expert reports, photos] and relied exclusively on your biased adjuster who [describe inadequate investigation].

2. Wrongful Denial / Lowball Offer (§ 624.155(1)(b)1): [If denied] Your claim denial lacks any reasonable basis and contradicts clear policy language providing coverage for [cite provision]. [If lowball offer] Your $[AMOUNT] offer is grossly inadequate when damages clearly exceed $[AMOUNT] per [licensed contractor / engineer / medical provider] assessment.

3. Failure to Settle in Good Faith (§ 624.155): Under all circumstances, you could and should have settled this claim fairly. Liability and damages are clear, yet you refuse to act fairly toward your insured or show due regard for my interests.

4. Delay Beyond Statutory Timeframes (§ 627.70131): You failed to [acknowledge claim within 14 days / complete investigation within 90 days / pay within 20 days of agreeing on amount], violating Florida's prompt payment statute.

5. Misrepresenting Policy Terms: You claim [stated exclusion/limitation] applies, but this misrepresents the policy. The policy clearly states [quote actual language] which provides coverage.

6. Ignoring Supporting Evidence: Despite receiving [engineer report confirming covered cause of loss / independent appraisal of $X / medical records proving injuries], you refuse to consider evidence contradicting your denial.

EVIDENCE OF COVERAGE & DAMAGES:

I have obtained independent documentation proving both coverage and full damage amount:

- [Licensed contractor/engineer] estimate: $[AMOUNT]
- [Independent adjuster/appraiser] assessment: $[AMOUNT]
- [Expert opinion] confirming cause of loss is covered peril
- Policy language analysis proving coverage
- [Code compliance costs / ordinance upgrades] required: $[AMOUNT]

Total Claim Value: $[AMOUNT]

DAMAGES FROM YOUR BAD FAITH:

Your bad faith denial/delay has caused catastrophic harm beyond the claim itself:

- Full Claim Amount: $[AMOUNT]
- Consequential Damages:
* [Mortgage foreclosure proceedings / foreclosure]: $[AMOUNT]
* [Medical expenses for untreated conditions]: $[AMOUNT]
* [Business losses / lost income]: $[AMOUNT]
* [Additional property damage from unrepaired condition]: $[AMOUNT]
* [Temporary housing costs]: $[AMOUNT]
- Emotional Distress: [Severe]
- Attorney Fees & Costs: [Accruing under § 627.428]

LEGAL REMEDIES AVAILABLE:

Under Florida law, your bad faith subjects you to:

1. FL Stat § 624.155: Damages in excess of policy limits, consequential damages, and all amounts recovered by prevailing party
2. FL Stat § 627.428: Mandatory attorney fees and costs for prevailing parties
3. FL Stat § 627.426: Interest on overdue claim amounts
4. Common Law Bad Faith Tort: Economic damages, emotional distress, and potential punitive damages for egregious conduct

SETTLEMENT DEMAND:

This is your final opportunity to resolve this matter before litigation. Within 15 days, you must:

1. Reverse your claim denial / Increase settlement offer to fair value
2. Pay the full claim amount of $[POLICY LIMIT or ACTUAL DAMAGES]
3. Pay $[AMOUNT] in consequential damages already incurred
4. Pay interest pursuant to § 627.426 from [DUE DATE]
5. Provide written confirmation of payment timeline

Total Settlement Demand: $[CLAIM + CONSEQUENTIAL + INTEREST]

CONSEQUENCES OF CONTINUED BAD FAITH:

Failure to comply will result in:

1. Filing civil action in [COUNTY] Circuit Court seeking:
- Full policy limits
- Consequential damages exceeding policy limits
- Common law bad faith tort damages
- Emotional distress damages
- Punitive damages (if applicable)
- Attorney fees and costs under § 627.428
- Interest under § 627.426

2. Formal complaint with Florida Department of Financial Services documenting violations of §§ 624.155, 627.70131

3. Referral to Florida Insurance Consumer Advocate

4. Public disclosure of your bad faith practices

Your liability will far exceed the policy limits if you continue this bad faith conduct. Florida juries award substantial damages against insurers who deny valid claims. Settle now while you can contain the damage.

I expect your response within 15 days.

Sincerely,
[Your Signature]
[Your Name]
[Phone Number]