QBE is involved in a $US500 million ($551 million) US court case that alleges the insurer acted deceptively and in bad faith in its handling of Florida hurricane claims.

A Miami apartment association is suing the insurer’s US operation and general agent for more than $US500 million in damages.

West Palm Beach lawyer Daniel Rosenbaum announced last week he has filed a lawsuit in Miami-Dade County Circuit Court against QBE and Florida Intracoastal Underwriters.

The case involves two 17-storey towers known as Buckley Towers which house 1200 residents in 564 units. The towers were condemned as unsafe this year – four years after the buildings were exposed to Hurricane Wilma.

The lawsuit alleges the apartment association notified the insurer of extensive damage to roofs, windows, sliding glass doors and the structure of the building, but says QBE insisted the damage was due to wear and tear and pre-existing conditions.

It further alleges QBE intentionally delayed and failed to settle valid claims in concert with Florida Intracoastal Underwriters.

Mr Rosenbaum said he believes the “facts are so compelling that they will demonstrate that a jury verdict exceeding $US500 million is warranted”.

He says the case follows a judgement against QBE from a federal court jury trial in February for about $US25 million ($28 million) plus costs.

QBE declined to comment when approached by insuranceNEWS.com.au.