13-05-2025
Florida home insurance: Reviewing the impact on state reforms
The Brief
State lawmakers made it harder to sue insurance companies, to reduce frivolous lawsuits, and bring down insurance costs.
Some lawmakers said, though, they did not have all the data they wanted or needed when they passed these reforms.
TALLAHASSEE, Fla. - State lawmakers made it harder to sue insurance companies, to reduce frivolous lawsuits, and bring down insurance costs, but some lawmakers said they did not have all the data they wanted or needed when they passed these reforms.
The backstory
In 2022, as some companies failed and our home insurance bills skyrocketed, state leaders blamed it on lawsuits.
READ:Home insurance nightmares continue months after 2024 hurricanes
"Somehow you have like one shingle off the roof and then some lawyer comes in and there's a big lawsuit," Governor Ron DeSantis said.
"We are just a factory of litigation in the state of Florida, and we have got to change this culture," said Florida CFO Jimmy Patronis, who is now a U.S. representative.
They revised the law to shift risk in litigation over claim disputes. Homeowners can no longer recoup their legal fees when they prevail. This can reduce frivolous lawsuits, but some homeowners said it limits their ability to pursue legal recourse over legitimate damage claims.
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"And, it can prevent the insured from repairing the damage like they need to," said attorney Donnie Worrell.
Dig deeper
When legislators debated these reforms, they noted a lack of data regarding lawsuits against insurance companies. They emphasized one statistic — Florida had about 8% of the homeowners' claims nationwide. The state represents 78% of all the litigation.
That statistic originated with former state insurance commissioner David Altmaier and an insurance group he led. It's based in part on information we can't see, because it is confidential. It is also based on data that excluded some markets, and former insurance regulator, economist and consumer watchdog Birny Birnbaum said it lacks context.
"There certainly was more litigation among certain companies in Florida than other states, but over half the companies had little or no litigation," said Birnbaum, who leads the Center for Economic Justice. "Well, it tells you it is not an industry wide problem."
Three years after the litigation reforms, state leaders cite a leveling off of rates (and in some cases a reduction in rates), as well as new property insurance companies entering the Florida market. They say that shows how the reforms are delivering some results.
The Source
The information in this story was gathered by FOX 13's Craig Patrick.
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