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What should I know about filing a property insurance lawsuit?

On Behalf of | Jan 3, 2024 | Insurance Law and Litigation

Insurance has been a major issue in Florida. Property owners are increasingly concerned about getting sufficient coverage in case of a weather-related event, a fire or another problem that damages their property and leads to repair or replacement. Another factor that is increasingly coming up is receiving sufficient compensation for what was lost.

In some instances, it is necessary for the insured to file a lawsuit against the insurance company. While this might seem straightforward, there is nuance to the filing. To ensure there is a good chance at a positive outcome and receiving the payments based on the owner’s intent and how they interpreted the policy, it is imperative to know the law.

Know the facts about property insurance lawsuits

A frequent issue in the insurance claim is a disparity between what the claimant says should be paid and what the insurer is willing to pay. This needs to be calculated and disclosed as part of the case. The claimant can make a settlement demand that would preclude the lawsuit. It should include any extra expenses the person would incur from the lawsuit such as legal fees and court costs. The insurance company can make a settlement offer prior to the suit in responding to the demand.

The claimant needs to give written notice that they intend to file a lawsuit and give specific information about the case. It should say what the insurer did or did not do to warrant the suit, give an estimate of the damages, the settlement demand and how much is in dispute.

Claimants should also be aware of what the insurer must do in the event of a lawsuit. It must investigate the case, review it and evaluate it. It must then reply in writing as to how it plans to respond. It might change its decision and approve the claim. It can also continue its denial or conduct a new inspection to reassess the damage.

Mistakes in insurance litigation can be costly

Even in cases where the claimant has a strong argument against the insurer, failing to adhere to the fundamentals of the law can lead to the case being dismissed. Since insurance companies are interested in mitigating costs and can try to find creative ways to deny claims, it is imperative for people to know their options through insurance litigation. Being aware of every aspect of the case – including how to file and what steps must be taken – is key.