Understanding Florida Insurance Legislation Changes

Florida's insurance landscape has undergone significant changes in recent years. The state's insurance legislation has been shaped by a combination of factors, including the need to address rising insurance costs, improve consumer protections, and promote a more competitive market.

One key change is the introduction of the Florida Insurance Guaranty Association, which was established in 1974 to provide coverage for policyholders who are owed money by insolvent insurance companies. This association has helped to maintain stability in the market.

The state's insurance regulations have also been impacted by the rise of assignment of benefits (AOB) abuse. AOB abuse occurs when an individual assigns their insurance benefits to a third party, often a contractor, without the insurance company's consent. This practice has led to a surge in frivolous lawsuits and increased insurance costs.

Florida's insurance legislation has also introduced reforms aimed at reducing insurance costs for consumers. One such reform is the requirement that insurance companies use a uniform pricing methodology for property insurance policies.

The new law has made it more difficult for property owners to challenge claims against insurance companies. This is because the law no longer allows attorneys to be awarded attorney fees to be paid by the insurance company if the lawsuit is successful.

As a result, property owners may have to pay for an attorney upfront, which can be a significant financial burden. This can be especially challenging for property owners who are already facing significant financial losses.

Insurance companies now have an incentive to delay paying claims, knowing that they will only owe the original amount, even if they lose a lawsuit. This can lead to an increase in denied or underpaid claims.

Property owners may see a decrease in the number of attorneys willing to take on their cases, as the financial risk is now solely on the property owner. This can make it even more challenging for property owners to navigate the claims process.

To mitigate this issue, some attorneys are taking on cases on a 20 percent contingency basis, meaning they will only get paid if they win the case. This can provide property owners with more options for seeking help.

The new Florida insurance legislation has significant implications for property owners.

The law eliminates the right to attorney fees, making it harder for attorneys to take on cases against insurance companies.

This change means property owners now have to pay for their own attorney fees, even if they win their case.

The lack of attorney fees makes it less financially justifiable for attorneys to take on property damage cases.

Insurance companies now have an incentive to delay paying claims, as they won't be forced to pay attorney fees if they lose a lawsuit.

This could lead to an increase in denied or underpaid claims, leaving property owners with significant financial losses.

Property damage attorneys at Reed & Reed are trying to mitigate this issue by taking cases on a 20 percent contingency basis.

This means they'll only get paid if they win the case, eliminating the need for clients to pay for an attorney upfront.

The new law in Florida has brought about significant changes to property insurance. The law eliminates the right to attorney fees, making it more difficult for property owners to challenge claims against insurance companies. This means that even if an attorney is certain of a winning case, the property owner will still have to pay the legal fees involved.

The law also creates an incentive for insurance companies to delay paying claims. If an insurance company knows they'll only owe the original amount, they have no reason to pay immediately. Instead, they can hold onto the money and invest it, only paying out when forced to through litigation.

The property damage attorneys at Reed & Reed have found a way to work around this change by agreeing to take cases on a 20 percent contingency basis. This means they'll only get paid if they win the case, eliminating the need for clients to pay upfront.

The Florida Legislature has also passed measures to address the property insurance crisis. One of these measures allows other insurance carriers to take on policies from Citizens Property Insurance, the state's insurer of last resort.

Here are some key points about the new law:

The goal of these measures is to provide relief to homeowners, particularly in the short term. For example, the My Safe Florida Home program will offer more money to homeowners to make storm-ready improvements to their homes, which should reduce their rates.