Florida insurance bad faith law: the Civil Remedy Notice and s. 624.155

Florida insurance bad faith law lets a policyholder recover damages caused by an insurer that fails to handle a claim in good faith, beyond the policy benefits themselves. For first-party property claims the remedy is statutory, set out in s. 624.155, Florida Statutes, and it cannot be pursued without first giving the insurer a Civil Remedy Notice and a chance to cure.

What s. 624.155 provides

Section 624.155(1) allows any person damaged by certain insurer conduct to bring a civil action. For property policyholders, the most important provision is (1)(b)1: an insurer's failure 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 and with due regard for the insured's interests. The statute also reaches violations of listed provisions of the Insurance Code, including the unfair claim settlement practices in s. 626.9541(1)(i), such as:

• Failing to adopt and implement standards for the proper investigation of claims.
• Misrepresenting pertinent facts or policy provisions relating to coverages at issue.
• Failing to acknowledge and act promptly upon communications with respect to claims.
• Denying claims without conducting reasonable investigations based upon available information.
• Failing to promptly provide a reasonable explanation in writing of the basis for a denial or compromise offer.

A plaintiff suing under (1)(b)1 does not need to prove a general business practice. Punitive damages are different: under s. 624.155(8) they require acts that occur with such frequency as to indicate a general business practice and that are willful, wanton and malicious or in reckless disregard of the insured's rights.

Filing a Civil Remedy Notice

The Civil Remedy Notice (CRN) is filed on a Department of Financial Services form, which DFS forwards to the insurer. Under s. 624.155(3)(b), it must state with specificity:

1. The statutory provision, including the specific language, that the insurer allegedly violated.
2. The facts and circumstances giving rise to the violation.
3. The name of any individual involved in the violation.
4. Reference to the specific policy language relevant to the violation, if any.
5. A statement that the notice is given to perfect the right to pursue the civil remedy authorized by the section.

A vague or boilerplate CRN invites a later argument that it was insufficient. The specificity requirement is why bad-faith notices are usually drafted by counsel.

The 60-day cure period

The insurer has 60 days after it receives the CRN to pay the damages or correct the circumstances. If it does, no bad-faith action lies on that notice. The limitations period is tolled for 60 days after the insurer receives the notice (s. 624.155(3)(e)). In a residential property claim, a CRN may not be filed within 60 days after either party invokes appraisal (s. 624.155(3)(f)).

Many insurers respond to a CRN by paying a disputed amount; others contest the notice. What counts as a “cure” in a property case is often itself disputed, and it is commonly measured against the amount owed under the policy.

When a property bad-faith claim ripens

Florida courts have long held that a first-party bad-faith action is premature until the underlying dispute is resolved in the insured's favor — that is, until the insurer's liability for coverage and the extent of the insured's damages have been determined. See Blanchard v. State Farm Mutual Automobile Insurance Co., 575 So. 2d 1289 (Fla. 1991), and Vest v. Travelers Insurance Co., 753 So. 2d 1270 (Fla. 2000). A favorable appraisal award, judgment or settlement establishing that benefits were owed can satisfy that requirement.

The practical sequence is therefore: the claim dispute first (negotiation, mediation, appraisal or a contract suit after pre-suit notice), then, where the insurer's conduct warrants it, a bad-faith action based on a CRN that was filed and not cured.

What changed in 2023

HB 837 (ch. 2023-15, Laws of Florida) amended s. 624.155. The current text adds:

• Negligence is not enough. “Mere negligence alone is insufficient” to constitute bad faith (s. 624.155(5)(a)).
• A duty on the insured side. The insured, claimant and their representatives must act in good faith in furnishing information about the claim, making demands, setting deadlines and attempting to settle (s. 624.155(5)(b)1). This does not create a separate cause of action, but the trier of fact may consider a lack of good faith and reasonably reduce the damages awarded (s. 624.155(5)(b)2).

The 2023 law also added a 90-day safe harbor for insurers that tender within 90 days, but that provision, s. 624.155(4)(a), applies to liability insurance claims, not to first-party property claims.

What can be recovered

Damages in a statutory bad-faith action are those caused by the violation, which can exceed the policy benefits. Punitive damages require the general-business-practice showing described above. Whether attorney fees are recoverable in a property-related bad-faith action after the 2022–2023 reforms is a question to raise with a lawyer for your specific case; see attorney fees after HB 837.

Conduct that prompts a closer look

None of these automatically proves bad faith, but each is worth documenting:

• No decision, or no written explanation, long after the 60-day period in s. 627.70131(7)(a).
• A denial issued without an inspection or without reviewing the evidence you submitted.
• An estimate revised downward without explanation, or an adjuster's report altered without the documentation s. 626.9541(1)(i)3.j. requires.
• Repeated requests for documents you have already provided.
• Misstatements about what your policy covers.

Keep a dated log of every call, letter and email. That record matters both in the claim and in any later bad-faith evaluation.

Frequently asked questions