Florida insurance law has become a source of concern for many homeowners, as recent legal reforms appear to have increased claim denials and financial strain across the state. The main changes, enacted in 2023, were designed to address litigation costs but have left many policyholders in a difficult position.
Florida Insurance Law Reform: Key Changes and Impacts
In March 2023, the Florida Legislature passed House Bill 837, a significant insurance law reform. According to The Washington Post, the law aimed to reduce what lawmakers called “frivolous lawsuits” against insurance companies. The legislation eliminated or restricted features like one-way attorney’s fees and changed how bad-faith claims could be argued in court.
Supporters of the reform, including Citizens Property Insurance Corporation, argued that legal costs were a major issue for insurers. They claimed that reducing litigation would lower premiums for policyholders. However, critics and experts are now raising concerns that the law has shifted the balance in favor of insurers, leaving homeowners with fewer protections. Recent industry trends, such as the historic rate cut proposal by Florida Peninsula Insurance, highlight ongoing shifts in the insurance landscape following these reforms.
Rising Claim Denials and Homeowner Challenges
After the insurance law changes, homeowners across Florida have reported a sharp increase in denied claims. According to The Washington Post, insurers closed 47% of damage claims without paying anything in 2024. This is the highest percentage in a decade, leaving many homeowners without financial support after disasters. Meanwhile, property insurance companies in Florida have seen profits surge, raising questions about the balance between insurer stability and consumer protection.
Despite the reforms’ intention to reduce lawsuits, an analysis found that nearly 13% of Floridians whose claims were denied in 2024 sued their insurer. This rate is higher than before the reform, indicating ongoing disputes and dissatisfaction among policyholders.
Legal Hurdles for Policyholders
The new insurance law made it harder for homeowners to recover attorney fees and required stricter standards to prove bad faith by insurers. According to a whitepaper from Milliman, these changes were meant to reduce the number and severity of claims. However, critics argue that they have only benefited insurance companies.
Florida state representative and insurance expert Hillary Cassel told The Washington Post, “Florida’s 2022 tort reforms only benefited insurance companies, who continue profiting while aggressively denying policyholder claims.” In some cases, Florida insurance companies have even been fined for mishandling disaster claims, further fueling criticism of the current system.
Why Homeowner Protections Matter in Florida
Florida faces frequent extreme weather events, including hurricanes, flooding, and fires. Homeowners rely on insurance to recover from these disasters. As global temperatures rise and weather becomes more severe, the need for reliable insurance coverage is growing.
When insurers deny more claims or set higher payout thresholds, many residents struggle to rebuild their lives. The inability to recover legal costs further discourages policyholders from challenging denied claims, making it harder for individuals to secure fair compensation.
Experts Warn of Growing Risks
Doug Heller, an insurance expert with the Consumer Federation of America, stated that the tort reform “puts more money in insurers’ pockets.” Critics argue that the reforms have shifted the financial burden onto homeowners, especially after natural disasters.
Legislative Proposals to Address Insurance Law Issues
In response to growing concerns, some lawmakers are seeking to revise the insurance law. House Bill 1551, introduced in 2025 by Rep. Hillary Cassel, proposes restoring the “prevailing party” rule for attorney fees in insurance disputes. This would allow policyholders to recover legal costs if they win a court judgment higher than the insurer’s last offer.
Separately, the Florida House attached language to a mining bill in April 2025 that would bring back “one-way attorney fees” in insurance litigation, according to the Florida Justice Reform Institute. These proposals reflect ongoing debates about how to balance insurer stability with homeowner protections.
Ongoing Debate and Uncertain Outcomes
Supporters of the 2023 reform maintain that high legal costs threaten the viability of Florida’s insurance market. However, homeowner advocates argue that the changes have gone too far, leaving many residents without effective recourse when claims are denied.
According to official sources, the impact of the insurance law reform is still being evaluated. Details may be updated as legislative proposals move forward and new data becomes available.
Frequently Asked Questions About Florida Insurance Law
What is the new Florida insurance law?
The new Florida insurance law, passed in 2023 as House Bill 837, changed rules about lawsuits against insurers and attorney fees. It aimed to reduce litigation but has led to more claim denials, according to official reports.
How much have claim denials increased in Florida?
According to The Washington Post, insurers closed 47% of damage claims without payment in 2024, the highest rate in a decade. This has left many homeowners struggling to recover after disasters.
Are there efforts to change the insurance law again?
Yes, lawmakers have introduced bills like House Bill 1551 to restore some legal protections for policyholders. These proposals are still being debated in the Florida Legislature.
Can you recover attorney fees if you sue your insurer in Florida?
Under the current law, it is harder for homeowners to recover attorney fees when suing insurers. New proposals aim to make it easier for policyholders who win their cases to get legal costs covered.
Where are homeowners most affected by the insurance law changes?
The changes impact homeowners throughout Florida, especially in areas prone to hurricanes and flooding. The reforms have statewide effects on insurance claims and coverage.
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