The short and simple answer to this question is ‘no’. The state of Florida has strict rules that insurers must follow before they can cancel your coverage. A company may not cancel your policy simply because you filed a property damage claim. If you have had an insurance policy for more than 90 days, and you have made timely payments, your policy can only be cancelled for very specific reasons. However, it is possible that you will face a non-renewal after filing a claim. You may even face receive a non-renewal notice while you are still involved in a dispute with the insurance company.
Property Insurance Non-Renewal in Florida
Florida companies have considerably more latitude when it comes to the non-renewal of a policy. Property insurance policies have a specific term length. Once a policy term comes to an end, both you (the policyholder) and the insurer have the right to decide not to renew the coverage. For example, you may decide to change to a different insurer simply because you found a better rate with the other company, while the insurer may choose not to renew your policy because they feel that offering you coverage is no longer worth the risk. A non-renewal does not mean that you did something wrong; insurance companies move in and out of specific markets all of the time. They may simply no longer wish to offer the class of coverage that you previously had. However, it is important to note that Florida law does impose strict notice requirements on insurance companies. If an insurance company has decided not to renew a policy, then they have a legal duty to provide the policyholder with written notice, detailing the non-renewal, within 45 days of the coverage expiring.
Could You Have a Bad Faith Claim?
Policy cancellation, also known as a rescission, can sometimes be good cause to bring a bad faith claim. This is something that you should be on the lookout for if your policy was cancelled soon after you filed a property damage claim. Florida insurance companies must always play by the rules. If they violate the state’s Unfair Trade Practice Act in any way, including by unfairly rescinding coverage, they can be held liable. In Florida. victims of bad faith insurance practices may be entitled to recovery for:
- The full value of the initial property damage;
- Any consequential damages;
- Their legal costs, including reasonable attorneys’ fees; and
- Punitive damages.
Ultimately, these type of cases are extremely complex. It is imperative that victims of bad faith policy rescissions seek professional assistance from an aggressive Fort Lauderdale bad faith insurance attorney.
Do You Need Legal Advice?
The experienced property insurance claims lawyers at Geyer f*cka Tyler can help. Our team has handled many Florida property insurance disputes, including bad faith claims. If you are in a dispute with your insurance company, please contact our office today to set up a free review of your claim. Our firm represents property owners throughout Broward County, including in Coral Spring and Pembroke Pines.
FAQs
A company may not cancel your policy simply because you filed a property damage claim. If you have had an insurance policy for more than 90 days and made timely payments, your policy can only be canceled for specific reasons. However, you may face a non-renewal after filing a claim.
Can an insurance company drop you because of a claim? ›
An insurance company can drop you for a number of reasons. Most commonly, insurers will cancel or opt not to renew coverage for drivers who file an excessive amount of claims. Drivers who are convicted of a DUI, perpetrate insurance fraud or fail to pay their insurance premium can also face being dropped.
Under what circ*mstances can an insurance company cancel your insurance? ›
Generally, your policy can be canceled for these reasons: Non-payment of premium. Material misrepresentation / fraud. Breaches of contractual duties by the insured.
Can you fight an insurance cancellation? ›
Internal appeal: If your claim is denied or your health insurance coverage canceled, you have the right to an internal appeal. You may ask your insurance company to conduct a full and fair review of its decision. If the case is urgent, your insurance company must speed up this process.
Can I cancel insurance with a pending claim? ›
In any of these cases, you may wonder if you can cancel the policy without affecting the pending claim. Yes, you can, but you should keep some things in mind before switching.
Can my insurance company cancel my insurance? ›
Technically, insurance companies can cancel your policy at any time, and for any reason. But they don't tend to do it for no reason. It wouldn't exactly be treating customers fairly to cancel car insurance policies for customers you simply didn't want to insure any more.
Why do insurance companies drag out claims? ›
Why Do Insurers Drag Their Feet in Handling Your Claim? Since insurance companies take the money they receive from premiums and invest it, the longer they keep those funds, the more interest they earn. This gives them a significant incentive to delay paying out on claims as long as possible.
What is it called when an insurance company refuses to pay a claim? ›
Bad faith insurance refers to an insurer's attempt to renege on its obligations to its clients, either through refusal to pay a policyholder's legitimate claim or investigate and process a policyholder's claim within a reasonable period.
What is the cancellation clause in an insurance policy? ›
Cancellation Clause Defined
Cancellation clauses are provisions found in an insurance policy that allows the insurer to cancel it before the end date. They permit the insurer to do so without a breach of contract penalty.
How to scare a home insurance adjuster? ›
Insurance adjusters often start with a lowball offer, hoping you will accept it without question. To scare an insurance adjuster, you must demonstrate that you know the true value of your claim. Reject the lowball offer in writing and provide a detailed explanation of why you believe the offer is inadequate.
Yes, the insurance company allows it to cancel your claim in most situations. However, the process and implications can vary. Generally, you have the right to withdraw a claim at any stage before the settlement is finalized. However, as soon as you decide to cancel the claim, you should notify your insurance provider.
How much notice does an insurer need to give to cancel a policy in Florida? ›
(b) The insurer shall give the first-named insured written notice of nonrenewal, cancellation, or termination at least 120 days before the effective date of the nonrenewal, cancellation, or termination.
How to write a claim withdrawal letter? ›
I/ We _______________________hereby agree to withdraw my/ our claim(s) and discharge the Insurers and/ or their agents from all of my/ our claims, present or future, in connection with or in any way arising out of an occurrence at __________________________________________ ...
What happens if an insurance company rejects a claim? ›
Insurance companies are regulated by the California Department of Insurance. Individuals who have had their claims denied in bad faith can file a consumer complaint with the department. An attorney can help walk you through the process and help to ensure you receive the recovery you deserve after an accident.
Is it hard to get insurance after being dropped? ›
If your coverage was dropped for a specific reason–like your roof is too old–you may have to address that concern before insurers are willing to cover you. But if you live in a high-risk area, it may be difficult to get traditional coverage at all. You may have to turn to your state's FAIR plan instead.
Will an insurance claim affect my insurance? ›
Even if you've been considered a safe driver in the past, your insurer may re-evaluate your driving record and decide to raise your premium if new claims indicate you've become a riskier driver. However, filing a claim doesn't mean your insurance premium will automatically increase.
Can insurance companies turn you down? ›
Insurers are in the business of risk, and they are likely to turn down drivers whom they consider too risky, which can happen for several reasons. State insurance laws and regulations may impact who and when carriers can issue a denial of service, and these laws may vary from state to state.
