Florida’s 2022 property insurance reforms made a major change that many homeowners may not realize.
Homeowners largely lost the one-way attorney fee protection that previously allowed them to recover attorney fees when they successfully fought their insurance company over a property insurance claim.
The Legislature said the reforms were necessary to reduce litigation and lower insurance costs. But that change came with a real cost for homeowners dealing with home damage and insurance disputes.
Before the change, if an insurance company wrongfully denied or underpaid a claim, a homeowner who prevailed could potentially recover reasonable attorney fees from the insurer.
That protection helped level the playing field.
Now, homeowners face a different calculation. If an insurance company refuses to properly pay a claim for home damage, hiring a lawyer can come with an additional financial burden because homeowners may not have the same ability to recover their attorney fees.
But here’s the part that deserves more attention.
Florida law requires insurers’ rate filings to account for projected savings from the insurance reforms, including savings associated with attorney fees.
So homeowners gave up an important protection in the name of reducing insurance costs.
Where are those savings?
Florida homeowners are still paying substantial premiums for property insurance. And when home damage occurs, they are now dealing with fewer protections when they have to challenge an insurance company’s decision.
The 2022 reforms may have changed Florida’s insurance market, but homeowners should understand what they gave up in the process.
Need a Florida Property Insurance Lawyer?
At Eisenstein Legal, we represent Florida homeowners and business owners in denied, delayed, and underpaid property insurance claims involving home damage, including storm, roof, water, and fire damage.
If your insurance company is not paying what you believe your policy covers, speaking with a home damage lawyer can help you understand your rights and options before accepting a denial or settlement. Give us a call if you need help.
