PROPERTY CLAIMS AND BAD FAITH
Courts have recognized that insurance companies owe a duty to the insured homeowners to act in the HOMEOWNER'S best interest rather than their own. The insurance company owes the homeowner a duty of good faith and fair dealing.
Under Florida Law, any person may bring a civil action against an insurer when such a person is damaged by the insurer's failure to attempt "in good faith to settle claims when, under all circumstances, it could and should have done so, had it acted fairly and honestly toward its insured and with due regard for his interests." Fla. Stat. 624.155(1)(B)(1); see also Fla. Std. Jury Instruction (Civ.) 3.1
THE INSURED SURRENDERS CONTROL OF THE CASE TO THE INSURANCE COMPANY
"The problem arises when a claim is made and the claim carries the risk of exceeding the limits of coverage, thereby transferring what could be a catastrophic event back to the insured...Often they are not playing with their own money. Rather, they are risking the insured's money."