Can I Sue My Insurance Company?

January 23, 2026 | Sagi Shaked | Bad Faith Insurance

If you file an insurance claim and feel ignored, underpaid, or treated unfairly, a common question comes up quickly: can I sue my insurance company? In Florida, the answer is yes, but only in certain situations. Insurance companies have legal duties to their policyholders, and when they fail to meet those duties, a lawsuit may be possible.

Understanding when you can sue your insurance company, and when you cannot, helps you decide what steps to take next.

When You Can Sue Your Insurance Company in Florida

You generally cannot sue an insurer just because you are unhappy with the outcome of a claim. However, Florida law allows lawsuits when an insurance company violates the policy or acts in bad faith.

You may be able to sue your insurance company if:

The company wrongfully denies a valid claim.
Payment is delayed without a valid reason.
The insurer refuses to investigate the claim properly.
The settlement offer is far lower than what the policy covers.
The insurer misrepresents policy terms.
The company fails to respond to communications.

These situations go beyond simple disagreements and may rise to the level of legal misconduct.

Breach of Contract Claims

The most common lawsuit against an insurance company is for breach of contract. Your insurance policy is a legal contract. If you pay premiums and follow the rules, the insurer must provide coverage as promised.

A breach of contract claim may apply when:

Coverage exists under the policy.
You complied with policy requirements.
The insurer still refuses to pay or underpays the claim.

In these cases, the lawsuit focuses on what the policy says and whether the insurance company followed it.

Bad Faith Insurance Claims

Florida also allows policyholders to sue for insurance bad faith. Bad faith occurs when an insurer puts its own interests ahead of yours and fails to handle the claim fairly.

Examples of bad faith behavior include:

Ignoring evidence that supports your claim.
Failing to settle a claim when liability is clear and damages are covered.
Delaying payment to pressure you into accepting less.
Not explaining why a claim was denied.
Refusing to defend you when the policy requires it.

Bad faith claims are more serious than contract disputes and can lead to damages beyond the policy limits.

First-Party vs. Third-Party Claims

Whether you can sue your insurance company also depends on the type of claim.

A first-party claim is one you file with your own insurer. Examples include property damage, uninsured motorist claims, or certain homeowners insurance claims. These claims often involve breach of contract or bad faith issues.

A third-party claim involves an insurer defending or settling a claim made against you by someone else. If the insurer fails to protect you properly, such as refusing to settle when it should, you may have grounds to sue.

When You Usually Cannot Sue

Not every dispute leads to a lawsuit. In many cases, insurers are allowed to investigate claims and even deny them if there is a valid reason.

You usually cannot sue your insurance company if:

The claim is excluded under the policy.
Required documentation was not provided.
The claim was filed too late.
The insurer is still conducting a reasonable investigation.

Disagreement alone is not enough. There must be evidence that the insurer acted improperly.

Steps to Take Before Filing a Lawsuit

Before suing your insurance company, there are important steps to take.

These include:

Reviewing your policy carefully.
Keeping copies of all communications.
Documenting delays or refusals to pay.
Requesting written explanations for decisions.
Giving the insurer a chance to correct the issue.

Florida law often requires notice and an opportunity to resolve the dispute before a lawsuit can move forward.

What Damages Can Be Recovered?

The type of lawsuit affects what you can recover.

In a breach of contract case, damages usually include:

The amount owed under the policy.
Interest on delayed payments.
In some cases, attorney fees.

In a bad faith case, damages may also include:

Amounts beyond policy limits.
Financial losses caused by the delay or denial.
Emotional distress in limited circumstances.

The facts of the case determine what damages may apply.

Contact the Aventura Bad Faith Attorneys at Shaked Law Personal Injury Lawyers for Help Today

In Florida, you can sue your insurance company if the insurer breaches the policy or acts in bad faith. These cases are not about simple frustration. They are about whether the insurance company followed the law and honored its obligations.

If your insurance company has delayed or wrongfully denied a claim, Shaked Law Personal Injury Lawyers is here to help. Our Aventura bad faith lawyers will fight insurance companies on your behalf and pursue the compensation you deserve. Contact us today for a free consultation.

Shaked Law Personal Injury Lawyers
20900 NE 30th Ave Suite 715 Aventura, FL 33180
(305) 937-0191
Open 24 hours