Should an insurer act in bad faith or if they choose to deny your claim, as a policyholder you may be able to sue to receive your policy benefits as well as attorney fees. Florida Statute section 627.428 requires an insurance company to pay its policyholder’s reasonable attorneys fees and court costs if the policyholder obtains a judgment against the insurance company. However, what happens should the insurer deny a claim in good faith because of an incorrect report? A recent Supreme Court case suggests that the policyholder may still be able to receive attorney fees for denial of a claim.
The case involved a homeowner who filed a claim with her homeowner’s insurance provider to cover sinkhole damage. The insurer investigated and determined that no sinkholes were found on the property, resulting in claim denial. The homeowner sued, alleging breach of contract and the insurer subsequently ordered a second property evaluation, which did in fact show sinkhole activity, contradicting the first report. The insurer agreed to pay the claim but chose not to reimburse the homeowner for the cost of hiring an attorney. The court decided otherwise.
If you have questions about your insurance or are considering a dispute, make sure to speak with a lawyer to help you determine the best steps to take.
This information is provided by Miami insurance attorney Alonso, Perez & Santos, LLP. Our areas of practice include bankruptcy, insurance litigation, debt harassment, credit card defense, foreclosure defense, immigration law, condominium law, business start-ups, and more. Call 305-676-7545 to speak with one of our attorneys and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.