Boynton Beach Bad Faith Insurance Lawyer — When Your Insurer Breaks the Law, We Fight Back

You paid your premiums. You filed your claim honestly. And then your insurance company denied it, delayed it for months without explanation, or offered a settlement so low it barely covers your actual losses. What you may not realize is that in Florida, insurers have legally enforceable obligations to their policyholders — and when they violate those obligations, you may be entitled to far more than just the benefits they originally owed you.

Florida Statute §624.155 gives policyholders the right to sue their insurer for bad faith — a legal cause of action that goes beyond the original claim and can include extra-contractual damages and, in egregious cases, punitive damages. Wolf & Pravato’s Boynton Beach bad faith insurance lawyers have handled these claims throughout Palm Beach County, fighting back against insurers who put their financial interests ahead of their legal duties to the people they insure.

If you believe your insurer has treated you unfairly, contact us for a free consultation. We will tell you honestly whether you have a viable bad faith claim — and what it could be worth.

What Is Bad Faith Insurance Under Florida Law?

Insurance bad faith is the legal doctrine that holds insurers accountable when they fail to handle claims honestly, promptly, and fairly. In Florida, this right is codified in Florida Statute §624.155, which allows a policyholder — or a judgment creditor in certain third-party scenarios — to bring a civil action against an insurer for violating its good faith obligations.

Florida law also imposes broader duties on insurers through §626.9541, which governs unfair and deceptive insurance practices — including misrepresenting policy terms, failing to acknowledge claims promptly, and refusing to pay claims without conducting a reasonable investigation. Violations of §626.9541 can serve as the foundation for a §624.155 bad faith action.

At its core, bad faith law exists because insurers hold a position of significant power over their policyholders. When you file a claim, you are dealing with a sophisticated corporation with experienced claims adjusters, legal teams, and a financial incentive to minimize payouts. Florida’s bad faith statutes are designed to level that playing field — and the damages available in a successful bad faith case reflect that policy goal.

First-Party Bad Faith vs. Third-Party Bad Faith

Florida bad faith claims fall into two distinct categories, each with different legal standards, procedures, and available remedies:

• First-party bad faith: Your own insurer fails in its duties to you under your own policy. Common examples include a homeowner’s insurer that wrongfully denies a hurricane damage claim, a health insurer that refuses to authorize necessary treatment, a disability insurer that terminates benefits improperly, or an auto insurer that refuses to pay a legitimate uninsured motorist (UM) claim. In Palm Beach County, first-party bad faith claims frequently arise from homeowners and auto UM policies.
• Third-party bad faith: Your liability insurer fails in its duty to protect you from an excess judgment by refusing to settle a claim against you within your policy limits. When an insurer refuses a reasonable settlement demand within policy limits — forcing a trial that results in a verdict exceeding those limits — the insurer can be held liable for the entire judgment, including the amount in excess of policy limits. The claimant who obtained the excess judgment can then pursue the bad faith claim directly against the insurer.

The distinction matters procedurally: first-party claims require a Civil Remedy Notice (CRN) before suit can be filed; third-party claims involve different procedural requirements. Our attorneys evaluate which framework applies to your situation in the initial consultation.

How Florida’s 2023 Insurance Reform (SB 2A) Changed Bad Faith Law

Florida’s insurance landscape changed substantially in 2023. Senate Bill 2A, signed into law in March 2023, made sweeping changes to Florida insurance and bad faith law that every policyholder needs to understand before pursuing a claim.

Elimination of One-Way Attorney Fees

Prior to SB 2A, Florida’s one-way attorney fee statute (§627.428 F.S.) allowed a prevailing policyholder to recover attorney fees from the insurer in litigation. This provision was a powerful deterrent against insurer misconduct and a practical tool enabling policyholders of modest means to retain experienced counsel. SB 2A eliminated one-way attorney fees for most insurance disputes filed after the effective date. The practical effect is that attorney fee recovery in bad faith cases is now governed primarily by §624.155’s own fee provisions and general bad faith damages — making it more important than ever to work with a firm that handles bad faith cases on a contingency basis, as Wolf & Pravato does.

New Pre-Suit Demand Requirements

SB 2A introduced new pre-suit demand procedures for certain insurance disputes. Policyholders pursuing certain property insurance claims must now comply with specific pre-suit notice and demand letter requirements before filing suit. Failure to comply can result in claim dismissal. Our attorneys track these evolving procedural requirements carefully and ensure every bad faith action we file is procedurally airtight.

Assignment of Benefits (AOB) Restrictions

SB 2A eliminated the Assignment of Benefits (AOB) for property insurance claims. AOB — a mechanism where policyholders assigned insurance benefits to contractors — had been widely used and widely abused in Florida. Its elimination does not affect most direct policyholder bad faith claims, but it has changed the litigation landscape for contractors and restoration companies. Policyholders pursuing their own claims directly are largely unaffected by this change.

The bottom line on SB 2A: Florida’s 2023 reforms made the insurance litigation landscape more complex and more favorable to insurers in some respects. This makes experienced bad-faith counsel — attorneys who understand the post-reform procedural requirements — more important than ever for policyholders.

The Civil Remedy Notice: Your Required First Step in a Florida Bad Faith Claim

Before you can file a bad faith lawsuit against your insurer under Florida Statute §624.155, you must first file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services (DFS). This is not optional — it is a mandatory pre-suit procedural step, and failing to file a proper CRN before suing will result in dismissal of your bad faith claim.

What the CRN Must Include

A properly drafted CRN must identify with specificity:

• The insurer and the specific policy at issue
• The claim number and a description of the insured loss
• The specific statute(s) the insurer allegedly violated — most commonly §624.155 and/or §626.9541
• The specific acts or omissions by the insurer that constitute the alleged violation
• The damages claimed as a result of the violation

Generic or vague CRNs that do not specifically identify the statutory violations and supporting conduct are insufficient. Drafting a CRN that will survive judicial scrutiny requires legal knowledge of both the substantive bad faith standards and the procedural requirements. This is not a document to prepare without an attorney.

The 60-Day Cure Period

Once a valid CRN is filed with the DFS, the insurer has 60 days to “cure” the violation by paying the full amount of damages identified in the notice. If the insurer cures within 60 days, the bad faith claim cannot proceed, but you receive what you are owed. If the insurer fails to cure, the statutory waiting period expires, and you may file suit for bad faith.

The 60-day window is strategically important: a well-crafted CRN that documents serious violations and substantial damages creates meaningful pressure on insurers to resolve claims they might otherwise continue to fight. Our attorneys have used the CRN process effectively to achieve pre-suit resolutions in Palm Beach County bad faith cases without the time and expense of full litigation.

CRN Timing and Deadlines

The CRN must be filed before the statute of limitations expires on the underlying bad faith claim. Under Florida’s current limitations framework (post-HB 837, effective March 24, 2023), civil actions based on written contracts have a 5-year limitations period, but the bad faith cause of action itself accrues when the underlying claim is resolved. Given the complexity of these timing rules, contact an attorney as soon as you believe your insurer is acting in bad faith — do not wait until your claim has been fully resolved.

Signs Your Boynton Beach Insurer May Be Acting in Bad Faith

Under §624.155 and §626.9541, insurers have specific obligations at every stage of the claims process. The following conduct — when it cannot be justified by legitimate claims investigation — may constitute actionable bad faith under Florida law:

During the Claims Investigation

• Failing to acknowledge receipt of your claim within a reasonable time after receiving notice
• Failing to begin a prompt investigation of your claim after receiving proof of loss
• Requiring you to submit duplicative or excessive documentation not required by your policy
• Using biased or unqualified experts (engineers, appraisers, adjusters) to evaluate your claim
• Ignoring evidence that supports your claim while cherry-picking evidence that supports denial
• Conducting a cursory investigation and denying the claim without adequate grounds

During the Claims Decision

• Denying your claim without a specific written explanation identifying the policy provision relied upon
• Misrepresenting the scope or terms of your policy coverage to justify a denial
• Delaying a coverage decision beyond a reasonable time period without explanation
• Claiming a policy exclusion applies that plainly does not apply to your loss
• Denying a claim based on the wrong policy period or the wrong named insured

During Settlement

• Offering a settlement that the insurer knows is significantly below the actual value of your claim
• Refusing to negotiate in good faith toward a fair resolution
• Making a lowball offer and refusing to increase it despite receiving additional supporting documentation
• Conditioning payment on your execution of an overly broad release
• Failing to settle a third-party claim within policy limits when there is a clear opportunity to do so (third-party bad faith scenario)

Ongoing Delay Tactics

• Repeatedly requesting information already provided
• Assigning your claim to multiple adjusters without explanation, causing repeated delays
• Failing to respond to your attorney’s communications within a reasonable time
• Imposing artificial deadlines while simultaneously failing to meet its own obligations

This list is illustrative, not exhaustive. Florida’s bad faith statutes cover a wide range of insurer conduct. If your experience with your insurer doesn’t appear here, but something feels wrong, contact us — we will evaluate whether what happened to you meets the legal standard for a bad faith claim.

What Damages Can You Recover in a Florida Bad Faith Insurance Case?

The damages available in a successful bad faith insurance case are one of the most important reasons to pursue these claims — and one of the most important reasons insurers fight them aggressively. A bad faith recovery is not limited to what the insurer originally owed you under the policy. It can include substantially more.

Policy Benefits Owed

The starting point is the contractual benefits the insurer wrongfully withheld — the amount you should have received under your policy in the first place. In a property damage claim, that is the repair or replacement cost. In a personal injury UM claim, it is the policy limits. In a disability claim, it is the back benefits owed.

Extra-Contractual Damages

Beyond the policy benefits themselves, bad faith law allows recovery of consequential damages that resulted from the insurer’s wrongful conduct. These extra-contractual damages can include:

• Additional financial losses caused by the delay or denial — for example, the cost of temporary housing if your homeowners’ insurer wrongfully delayed payment on a property loss
• Interest on delayed payments
• Emotional distress damages caused by the insurer’s bad faith conduct
• Attorney fees and costs (subject to post-SB 2A framework discussed above)

Excess Judgment (Third-Party Bad Faith)

In a third-party bad faith case, where the insurer refused to settle within policy limits and an excess verdict resulted, the insurer is liable for the full judgment — including the amount exceeding the policy limits. A $100,000 policy is no protection if the insurer’s bad faith exposed the policyholder to a $1,000,000 verdict.

Punitive Damages

In cases involving particularly egregious insurer conduct — where the insurer’s actions were malicious, wanton, or showed a conscious disregard for the policyholder’s rights — punitive damages may be available under Florida law. Punitive damage claims require specific pleading and judicial approval to assert, but in appropriate cases, they are a powerful tool. The availability of punitive damages is one reason insurers take well-documented bad faith claims very seriously in settlement discussions.

Types of Bad Faith Insurance Claims We Handle in Boynton Beach

Bad faith conduct can occur across virtually every type of insurance policy. The most common bad faith claims our Boynton Beach attorneys handle include:

Homeowners and Property Insurance Bad Faith

South Florida’s exposure to hurricanes, tropical storms, and flooding makes bad faith homeowners’ insurance claims one of the most prevalent claim types in Palm Beach County. Insurers routinely underpay, delay, and dispute property damage claims after major weather events — and post-storm claim handling is exactly the context Florida’s bad faith statutes were designed to address. Common scenarios include disputed roof damage claims, underpaid contents claims, and wrongful application of policy exclusions for water intrusion or mold.

Auto Insurance Bad Faith — UM/UIM and Bodily Injury

Florida’s auto insurance environment — a no-fault state with mandatory PIP coverage and optional uninsured/underinsured motorist (UM/UIM) coverage — generates significant bad faith exposure. Insurers frequently undervalue UM claims, delay PIP payments in violation of the 30-day payment requirement, and refuse to tender bodily injury limits in third-party claims where liability is clear. If you were seriously injured in a Boynton Beach car accident and your insurer has refused to honor your UM coverage, that refusal may be actionable bad faith.

Health Insurance Bad Faith

Health insurers that wrongfully deny coverage for necessary medical procedures, impose improper prior authorization requirements, or unreasonably terminate benefits mid-treatment may be liable for bad faith. These claims are particularly important in cases involving serious injuries or chronic conditions where delayed treatment has compounded harm.

Life Insurance Bad Faith

Life insurance claim denials — often based on alleged misrepresentations in the application or disputed cause of death — can be challenged as bad faith when the insurer fails to conduct a thorough investigation or misapplies policy terms. These claims are typically brought by surviving family members who are already navigating grief alongside a wrongful denial.

Disability Insurance Bad Faith

Long-term disability insurers — particularly large group carriers — have well-documented histories of terminating or denying claims on pretextual grounds, commissioning biased IMEs, and mischaracterizing occupational definitions to avoid paying benefits. If your disability benefits have been denied or terminated, we can evaluate whether the insurer’s conduct meets the standard for a bad-faith claim.

The Third-Party Bad Faith Scenario: When Your Insurer’s Failure Exposes You

Third-party bad faith deserves special attention because its consequences can be financially devastating for the policyholder — and because it is less understood than first-party claims.

The scenario unfolds as follows: You are involved in an accident. You have liability insurance. The injured party makes a settlement demand within your policy limits. The demand is reasonable, liability is clear, and your insurer should accept it — but they don’t. They refuse to settle, push the case to trial, and a jury returns a verdict that exceeds your policy limits by hundreds of thousands of dollars.

Under Florida law, if your insurer’s refusal to settle was unreasonable — if it constituted bad faith — your insurer can be held liable for the entire verdict, including the amount in excess of your policy limits. Florida courts have established that an insurer acting as a fiduciary for its policyholder must give equal consideration to the policyholder’s exposure when making settlement decisions, not just its own financial interests.

The injured party who holds the excess judgment can pursue the bad faith claim directly against the insurer after obtaining a final judgment. This creates a powerful incentive for insurers to settle within limits when they should — and a viable legal path when they don’t.

Why Choose Wolf & Pravato as Your Boynton Beach Bad Faith Insurance Lawyer?

There is no shortage of personal injury and insurance dispute law firms in South Florida. However, Wolf & Pravato provides a level of personal attention, experience, and litigation strength that many high-volume firms simply cannot offer. Our attorneys are licensed to practice law in Florida and have decades of combined experience representing policyholders in bad faith insurance claims throughout Palm Beach County and across South Florida.

Insurance companies are required by law to act fairly when handling claims. When they delay, deny, or underpay valid claims, our legal team takes immediate action to protect our clients’ rights and pursue the compensation they deserve.

Licensed and Verified Legal Representation

Experienced Florida personal injury and bad faith insurance attorney Richard Paul Pravato, a member in good standing with The Florida Bar since 1996, leads Wolf & Pravato. Attorney licensing and credentials can be verified through the official Florida Bar profile:

https://www.floridabar.org/mybarprofile/86150

Richard Pravato is also a Board Certified Civil Trial Attorney, a distinction awarded by The Florida Bar to attorneys who demonstrate exceptional knowledge, skill, and professionalism in civil trial law. This certification reflects our firm’s commitment to high-level advocacy, especially in complex insurance bad faith cases.

When insurance companies fail to act in good faith, having a board-certified trial lawyer on your side can make a significant difference in the outcome of your case.

What Our Clients Say About Us

“Brian and Vernae and Mr Pravato all did an excellent job handling my case in a timely manner! They also kept me informed and fought until the end! Brian was very informative!! The whole team, I couldn’t have asked for a better firm! HIGHLY RECOMMENDED.”

— Ja Morant

“Back in February I had an unfortunate accident, and I had the pleasure of having Jayne work on my case. She was amazing! I never had to wonder what was going on because she always kept me updated by phone and email. The insurance and hospital billing issues became complicated, but Wolf & Pravato fought for me every step of the way. They refused to let the insurance company take advantage of me, and we won. I would highly recommend them to anyone who needs a personal injury or insurance dispute attorney. They were fast, fair, and always kept me informed throughout the process.”

— Madison Pando

Reference: https://share.google/vIaFmIWLh3vVcy1op

Contact Our Boynton Beach Bad Faith Insurance Lawyers — Free Consultation

If your insurance company has denied your claim, delayed payment without justification, or offered you a settlement you know is unfair, you may have rights under Florida law that go far beyond your original claim. Wolf & Pravato’s bad faith insurance attorneys will review your claim, evaluate the insurer’s conduct against Florida’s §624.155 standards, and give you an honest assessment of your options.

The consultation is free. If we take your case, you pay nothing unless we win. Contact our Boynton Beach office today.

Frequently Asked Questions: Bad Faith Insurance Claims in Boynton Beach

1. How do I know if my insurer is acting in bad faith or just taking a long time?
   Legitimate claims investigation takes time — but there are limits. Florida’s Prompt Payment statute requires insurers to acknowledge claims within 14 days, begin investigation within 10 days of proof of loss, and pay or deny within 90 days in most cases. Delays beyond these windows without explanation, combined with other conduct like biased adjusters or pretextual denials, begin to look like bad faith. If you are uncertain, contact us for a free evaluation. We will tell you whether what you are experiencing crosses the legal threshold.
2. What is the Civil Remedy Notice, and do I need one before I can sue?
   Yes — for most first-party bad faith claims under §624.155, filing a CRN with the Florida Department of Financial Services is a mandatory pre-suit step. The CRN must specifically identify the statutory violations and the insurer’s conduct. After filing, the insurer has 60 days to cure. If they don’t, you may proceed with a lawsuit. Failing to file a proper CRN before suing will result in dismissal of the bad faith claim. Our attorneys handle the CRN drafting and filing process as part of every bad faith representation.
3. What can I recover beyond my original denied claim?
   A successful bad faith claim can recover the original policy benefits owed, plus extra-contractual damages (consequential losses caused by the denial or delay), interest, and attorney fees under applicable provisions. In egregious cases, punitive damages are available. In third-party bad faith cases involving an excess judgment, the insurer can be liable for the entire verdict above policy limits. The total recovery in a bad-faith case often substantially exceeds what the insurer originally owed.
4. How did Florida’s 2023 SB 2A reform affect my bad faith claim?
   SB 2A eliminated one-way attorney fees for most insurance disputes filed after its March 2023 effective date, which previously allowed prevailing policyholders to recover attorney fees from insurers. It also introduced new pre-suit notice requirements for certain property insurance claims. The changes generally favor insurers procedurally, but the substantive right to bring a bad faith claim under §624.155 remains intact. Working with a firm that handles these cases on contingency — as Wolf & Pravato does — remains the practical path forward for most policyholders.
5. My homeowners’ insurer underpaid my storm damage claim. Is that bad faith?
   It may be, depending on how the underpayment occurred. If the insurer used a biased adjuster, improperly applied exclusions, ignored supporting evidence, or failed to conduct a reasonable investigation before valuing your loss, those facts may support a bad faith claim in addition to a breach of contract claim for the underpayment. South Florida insurers have been aggressive in minimizing storm-related property claims — we evaluate these cases regularly and can tell you quickly whether your situation has bad faith dimensions.
6. How long do I have to file a bad faith insurance claim in Florida?
   The limitations period for a bad faith claim under §624.155 is generally 5 years for claims based on a written contract. However, the claim accrues when the underlying insurance dispute is resolved — not when the bad conduct occurred — and the CRN must be filed before the limitations period expires. Given the procedural requirements and the time needed to build a solid case, contact an attorney as soon as you believe bad faith is occurring, not after your claim is fully resolved.
7. Can I file a bad faith claim if my insurer eventually paid, just very late?
   Potentially, yes. Unreasonable delay in paying a valid claim can constitute bad faith even if the insurer eventually pays. The question is whether the delay was justified by legitimate investigation needs or was instead a tactic to pressure you into accepting less or simply to defer payment for the insurer’s financial benefit. We evaluate the full timeline and conduct of the claims process — not just the outcome — when assessing a bad faith claim.
8. What if the Florida Department of Financial Services (DFS) already investigated my complaint?
   A DFS complaint and a private bad faith lawsuit are separate proceedings with different standards and remedies. The DFS can investigate insurers and impose regulatory sanctions, but it cannot recover damages for you personally. A §624.155 bad faith lawsuit is a private civil action that can recover your actual damages, extra-contractual damages, and potentially punitive damages. A DFS investigation may produce useful documentation for your civil case, but it does not replace it.