Can I Sue for Delayed Claim Payments in Miami?

Florida insurance law requires insurers to handle claims promptly and pay approved amounts within a reasonable time. When they don’t, you can sue for delayed insurance claim payments in Miami. This includes filing a lawsuit for breach of contract or bad faith conduct if all other efforts to resolve the delay have failed.

Insurance coverage for property damage is meant to provide timely financial protection, not extended battles over payment. When delays occur within the insurance claim timeline, especially without valid justification, they can leave homeowners, condo owners, and business operators in financial distress. 

If you’re in Miami and facing unexplained or prolonged delays in your insurance claim payment, a qualified Miami insurance claim attorney at The Morgan Law Group can help you explore your legal options.

Deadline for Insurance Claim Payments in Miami 

Under Florida Statutes § 627.70131(7)(a), insurance companies are required to pay or deny a claim within 60 days after receiving proof-of-loss documentation. This insurance claim timeline safeguards policyholders, ensuring they are not left in limbo after a loss. 

The law states:

“Within 60 days after an insurer receives notice of an initial, reopened, or supplemental property insurance claim from a policyholder, the insurer shall pay or deny such claim or a portion of the claim unless the failure to pay is caused by factors beyond the insurer’s control.”

This means that unless an insurer has a legitimate, documentable reason, such as a natural disaster disrupting operations or the need for additional investigation, they must issue payment within that two-month window.

The Florida Office of Insurance Regulation (OIR) may issue bulletins allowing insurers more time. However, this does not give insurers a blank check to delay. Any extension must be clearly justified and documented.

Policyholders should also be aware of the difference between claim acknowledgment, claim adjustment, and payment. The 60-day rule applies to payment decisions after proof of loss, not necessarily from the moment you file your insurance claim.

Other Remedies Before I Sue for Delayed Payments in Miami

Before moving forward with a lawsuit, it’s important to exhaust other remedies. Courts often look for evidence that a policyholder tried to resolve the issue through appropriate channels before filing suit. 

Here are the steps to take before suing:

1. Review Your Policy and Correspondence

Check your insurance policy to confirm the coverage, deadlines, and conditions. Review all correspondence from the insurer to determine whether they’ve requested additional information or cited any specific delays.

2. Follow Up with the Adjuster

Sometimes delays result from internal miscommunications or missing documentation. Keep records of all follow-up emails, phone calls, and letters. Request written explanations for any delay in payment.

3. Submit a Formal Demand

Florida law allows you to file a Civil Remedy Notice (CRN) under § 624.155, notifying the insurer of its failure to act in good faith. This gives the company 60 days to cure the violation and make payment. If they don’t respond appropriately, this becomes evidence for a potential bad faith insurance lawsuit.

4. File a Complaint with the Florida Department of Financial Services

The Florida DFS allows policyholders to submit complaints about insurance companies online. While not a legal remedy, it often prompts insurers to act quickly to avoid regulatory penalties.

These steps show the court that you made every effort to resolve the issue without litigation. If delays persist, your next option may be legal action with the support of insurance claim attorneys in Miami.

How Can I Sue for Delayed Insurance Claim Payments in Miami?

If your insurer fails to meet the required timelines, and you’ve taken all reasonable steps to resolve the issue, you may be entitled to sue for breach of contract or bad faith under Florida law.

Step 1: Hire an Insurance Claim Attorney

An experienced Miami insurance claim attorney can evaluate your case and determine whether a lawsuit is warranted. They can also calculate damages such as interest on delayed payments, consequential damages, and, in some cases, attorneys’ fees and punitive damages.

Step 2: File a Breach of Contract Lawsuit

Your insurance policy is a contract. If the insurer unreasonably delays payment, that can constitute a breach. 

In a breach of contract lawsuit, you may recover:

• The full amount owed under the claim
• Interest on delayed payments
• Court costs and legal fees

Step 3: Consider Suing for Bad Faith

If your insurer intentionally delayed your claim without a valid reason, you may also sue for bad faith. This claim goes beyond breach of contract and requires showing that the insurer acted unfairly or dishonestly. Florida’s bad faith laws allow for additional damages, including compensation for emotional distress or financial harm caused by the delay. 

In some cases, the conduct of the insurance adjuster specifically may be at issue. If the adjuster misrepresented facts or intentionally delayed processing your claim, you may have grounds for suing the adjuster for bad faith.

Let’s Advocate for You in Times of Delayed Payments in Miami 

Insurers are held to clear legal standards under Florida law. When they ignore deadlines or fail to communicate timely decisions, policyholders have the right to hold them accountable.

Delayed insurance claim payments can have serious consequences that go far beyond a temporary inconvenience. 

• Property owners often rely on prompt payments to repair roof leaks, fix water damage, or remove mold after storms. 
• Businesses may need funds to resume operations after hurricane-related losses. 
• Renters may be displaced from their homes due to structural issues.

If you’ve experienced delays in receiving insurance claim payment for a covered property damage claim and your Miami insurer isn’t responding with valid reasons, it may be time to take legal action. Our insurance claim attorney at The Morgan Law Group can help you determine the right path forward.

Call us today at (305) 614-5235 or contact us using our online form for a free case evaluation about your delayed insurance claim payment at our office in Miami.