Major Insurance Reforms Are Changing the Game for Florida Homeowners
Florida’s property insurance market has been in turmoil for years, with rising premiums, insurer insolvencies, and a claims litigation rate far higher than any other state. In response, the Florida legislature enacted a series of reforms beginning with the special session in late 2022 (SB 2A) and continuing through the 2023 regular session (HB 837 and SB 7052) and subsequent legislative updates. These reforms fundamentally change how insurance claims are handled, disputed, and litigated in the state.
As a homeowner, these changes directly affect your rights and options when you file a property damage claim. WrightWay Emergency Services works with Florida homeowners on insurance claims every day, and we have seen firsthand how these reforms impact the claims process. Here is what you need to know heading into 2026.
Elimination of One-Way Attorney Fees
Perhaps the most significant change: Florida eliminated the one-way attorney fee statute that had been in place for decades. Previously, if you sued your insurance company and won, the insurer was required to pay your attorney’s fees. But if the insurer won, you did not have to pay theirs. This asymmetry encouraged litigation.
What Changed
- The one-way attorney fee provision (formerly Florida Statute 627.428) has been repealed for property insurance claims
- Each party now generally bears their own attorney’s fees unless a separate fee-shifting provision applies
- This makes filing a lawsuit against your insurer a more significant financial decision because you may need to pay your attorney out of any recovery
What This Means for You
The practical effect is that hiring an attorney to sue your insurer now requires a cost-benefit analysis. For smaller claim disputes (under $10,000 to $15,000), the attorney’s contingency fee may consume most of the additional recovery. For larger disputes, attorney representation remains valuable but the financial calculus is different than before.
Assignment of Benefits (AOB) Reforms
Florida has significantly tightened the rules around Assignment of Benefits agreements, which allow you to transfer your insurance benefits to a contractor or restoration company.
Key AOB Changes
- AOB agreements must contain specific disclosures and comply with strict formatting requirements
- The assignee (contractor) can only recover the amount the insurer would have owed the policyholder, not inflated amounts
- Insurers can offer policies with AOB restrictions at a reduced premium
- Policyholders have the right to rescind an AOB within a specified timeframe
What This Means for You
Be cautious about signing any AOB agreement. Understand what rights you are transferring and what limitations apply. At WrightWay, we work directly with homeowners and their insurance companies without requiring an assignment of benefits, keeping you in control of your claim.
Shortened Claim Filing Deadlines
The reforms reduced the time homeowners have to file property insurance claims:
| Claim Type | Previous Deadline | Current Deadline |
|---|---|---|
| Standard property claims | Varies by policy (up to 5 years in some cases) | 2 years from date of loss |
| Hurricane/named storm claims | 3 years from date of loss | 2 years from date of loss |
| Supplemental claims | 3 years from date of loss | 2 years from date of loss (18 months for reopened claims in some contexts) |
What This Means for You
Do not wait to file a claim. After a storm, many homeowners delay filing while dealing with other priorities. With a two-year deadline, procrastination can cost you your right to coverage entirely. File promptly, even if you have not yet obtained a full estimate of the damage.
Bad Faith Claim Changes
The reforms also modified how bad faith claims work against insurance companies. Previously, if your insurer unreasonably denied or underpaid your claim, you could file a separate bad faith lawsuit and potentially recover damages beyond the policy limits. The reforms:
- Created additional procedural requirements before a bad faith claim can be filed
- Extended the time insurers have to investigate and pay claims before bad faith liability attaches
- Added a right to cure, giving insurers an opportunity to correct errors before facing bad faith exposure
What This Means for You
Holding your insurer accountable for unreasonable behavior is still possible, but the process is more structured and takes longer. Documenting every interaction with your insurer, every promise made, and every deadline missed is more important than ever.
Insurer Transparency Requirements
Not all the reforms favor insurers. Florida has also enacted provisions requiring greater transparency:
- Insurers must provide more detailed explanations when denying claims
- Claim handling timelines are more clearly defined, with penalties for violations
- The Florida Office of Insurance Regulation has enhanced oversight authority
- Insurers must report more data on claims handling performance
Impact on the Appraisal Process
WrightWay documents every loss to insurance standards, photos, moisture logs, and itemized scopes your adjuster can approve without back-and-forth.
The appraisal process, which allows policyholders and insurers to resolve disputes over the amount of a claim through independent appraisers, remains available. However, the reforms clarify that appraisal is for amount disputes only, not coverage disputes. If your insurer agrees the damage is covered but you disagree on the dollar amount, appraisal is a powerful tool that can resolve the dispute without litigation.
Citizens Property Insurance Changes
The reforms included specific changes to Citizens Property Insurance, Florida’s state-backed insurer of last resort:
- Citizens has been authorized to implement rate increases to move toward actuarially sound premiums
- The depopulation program (moving Citizens policyholders to private carriers) has been strengthened
- Eligibility requirements have been tightened to ensure Citizens remains a true insurer of last resort
- Citizens policyholders may face mandatory inspections before policy renewal
How to Protect Yourself Under the New Rules
Given these changes, Florida homeowners should take these steps:
- File claims promptly. The shortened deadlines make timely filing essential.
- Document everything. Keep photos, videos, receipts, and written records of all communications with your insurer. Read our guide on documenting property damage.
- Understand your policy. Review your coverage, limits, deductibles, and exclusions before a loss occurs.
- Work with experienced professionals. A restoration company that understands the claims process can document damage properly and communicate effectively with your insurer.
- Be cautious with AOB agreements. Understand what you are signing and consider alternatives.
- Consider the cost of disputes. With attorney fee changes, evaluate whether negotiation, appraisal, or other alternatives are more cost-effective than litigation for your specific situation.
WrightWay Navigates the New Landscape With You
WrightWay Emergency Services stays current on Florida’s evolving insurance regulations so our clients do not have to. We provide the documentation, communication, and claims support that homeowners need in this new environment. From emergency water cleanup to complete reconstruction, we manage the restoration while helping you maximize your insurance recovery under the current rules.
Questions about your coverage or a current claim? Call (941) 379-8669 any time.
WrightWay handles every restoration job from emergency response through licensed reconstruction.
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