Title Insurance Disputes in Florida: When Coverage Fails to Protect You
Title insurance helps protect Florida property owners and lenders from hidden defects, competing claims, and other issues after a real estate transaction closes. However, when problems arise, insurers often deny or dispute coverage.
Our Florida real estate litigation lawyer explains more about what title insurance covers, common types of disputes, and key factors that impact your rights in a claim.
What South Florida Title Insurance Covers and Where Disputes Arise
A title insurance policy protects against losses arising from title defects that existed before the policy was issued but were not discovered during the title search.
Florida’s Department of Financial Services (DFS) oversees title insurance regulation and provides a framework for resolving disputes between insurers and policyholders. Among the most common include:
- Denied claims based on policy exclusions that the insurer applies broadly or improperly.
- Disputes over the value of a covered loss and how much the insurer must pay.
- Coverage conflicts arising from undisclosed liens, easements, or encumbrances.
- Insurer delays in responding to or investigating a valid title claim.
- Disputes over whether defects existed before or after the policy was issued.
- Disagreements about the insurer’s duty to defend against a third-party claim affecting title.
Title insurance companies are for profit business, and policies often contain exclusions and conditions that insurers can use to refuse coverage. If your claim is denied or disputed, the first step is carefully reviewing your policy language.
Denied South Florida Title Insurance: Your Rights in a Bad Faith Claim
When title insurers dispute or deny claims for no legitimate reason, it’s called acting in bad faith. Under Section 624.155 of the Florida Statutes, they can face serious penalties, including liability for the full value of your claim, financial losses you suffered as a result, and your court costs and legal fees.
Key factors that impact your rights in a South Florida bad faith claim include:
- Whether the insurer properly applied policy exclusions cited in the denial.
- Whether they conducted a thorough and timely investigation of your claim.
- Whether the loss you suffered falls within the policy’s covered risks.
- Whether the insurer had a duty to defend you against a third-party claim and failed to do so.
- Whether the insurer’s handling of your claim rises to the level of bad faith under Florida law.
Florida’s bad-faith statute requires policyholders to file a Civil Remedy Notice with DFS before pursuing a bad-faith claim, giving the insurer 60 days to cure the violation.
Contact Our Experienced Florida Real Estate Litigation Lawyers
Title insurance protects South Florida property owners against hidden defects and other potentially costly problems that arise after closing. When insurers deny claims, our Florida real estate litigation lawyer protects your rights.
At Neuman Law, P.A., we review coverage disputes, challenge improper denials, and fight for the compensation you deserve. Call or contact us online today to request a consultation. We provide trusted legal services to clients in Florida, Palm Beach County, Martin County, Broward County, Miami-Dade County, Monroe County, and Hillsborough County.
Sources:
myfloridacfo.com/division/consumers/understanding-insurance/title-insurance-overview
leg.state.fl.us/statutes/index.cfm?App_mode=Display_Statute&URL=0600-0699/0624/Sections/0624.155.html