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Business Litigation FAQs

What is Insurance Bad Faith?

Under bad faith law, insurance companies are required to adjust a claim within a reasonable period of time. Insurers must also fully cooperate with claimants. This includes providing prompt responses to policyholder’s inquiries. Furthermore, Florida’s bad faith law requires insurers to, among other things, disclose to policyholders the reasons why they are denying requested benefits and cite specific policy provisions in support of their position.

Violations giving rise to bad faith lawsuits include the following:

  • Not attempting in good faith to settle claims when, under all the circumstances, it could and should have done so, had it acted fairly and honestly to its insured and with due regard for the insured’s interests;
  • Making claims payments to insureds not accompanied by a statement setting forth the coverage under which payments are being made;
  • Failing to promptly settle the claim, when the obligation to settle the claim has become reasonably clear;
  • Despite absence of a settlement demand, a liability insurer fails to initiate settlement negotiations when liability is clear enough, and damages serious enough, that an excess judgment is probable. Powell v. Prudential Property & Casualty Ins. Co., 584 So. 2d 12 (Fla. 3d DCA 1991); MacHalette v. Southern Owners Ins. Co. 2011 WL 3703368;
  • Faced with multiple competing claims, failing to fully investigate all of the claims, failing to keep the insured informed about the claims process, failing to seek to settle as many claims as possible within the policy limits, and failing to minimize the magnitude of possible excess judgments without indiscriminately settling selected claims. Farinas v. Florida Farm Bureau Gen. Ins. Co., 850 So. 2d 555,560-61 (Fla. 4th DCA 2003).

The insurance company is asking for a sworn or recorded statement, am I required to give them one?

Yes. The insurer has the right to seek a sworn statement from you. You will need to participate in the examination and answer questions truthfully. However, we strongly suggest you to contact Salas Law Firm at (954) 315-155 for a complimentary consultation. If we take your case, we may attend the examination with you.

What should I do if my home or business is damaged by severe weather?

You should contact your insurance carrier and submit a claim as soon as possible.

If you do not get a timely response, please call Salas Law Firm at 954-315-1155.

How much will it cost to hire Salas Law Firm to represent me on my insurance claim?

We understand that many of our clients do not have ability to pay attorney’s fees. Salas Law Firm offers you a complimentary consultation. In most instances, if we agree to take your case, Salas Law Firm will work on a contingency fee basis. This means that if there is no recovery on your claim, you do not pay fees for our services or costs advanced by our office. Furthermore, under certain circumstances your insurance company will become responsible for paying your attorney’s fees and costs. Since not all insurance claim cases are alike, please contact our office at (954) 315-1155 to discuss your case in more detail.

What is the difference between Actual Cash Value (ACV) and Replacement Cost Value (RCV)?

Most policies provide that you will initially be paid that is known as actual cash value, or the estimated cost for the item after deducting depreciation. Once you actually replace the item, you can then submit the receipt to the insurance company and they will then pay you the difference between what you were initially paid and what it cost to replace the item. If you are having an RCV/ACV issue with your insurer please call us at (954) 315.1155, we may be able to help.