Florida's 2023 Property Insurance Reform: What Changed
Florida's 2022 and 2023 legislative sessions dramatically reshaped property insurance law. Key changes affecting homeowners: the one-way attorney fee statute (which previously allowed policyholders to recover attorney fees from insurers who underpaid claims) was eliminated; the assignment of benefits (AOB) reform took full effect; and bad faith procedures under Florida Statute § 624.155 were modified. These changes made individual claims litigation less economically viable for small claims while increasing the importance of the pre-suit Civil Remedy Notice process.
The Civil Remedy Notice: Your First Step in a Disputed Claim
Before filing a Florida bad faith insurance lawsuit, you must serve the insurer with a Civil Remedy Notice (CRN) through the Florida Department of Financial Services. The CRN must identify the specific statutory violation, the facts underlying the claim, and the amount of damages. The insurer then has 90 days to cure the violation by paying the amount owed. A CRN that results in payment resolves the bad faith claim; if the insurer fails to cure, the bad faith action can proceed.
Invoking the Appraisal Process
Most Florida property insurance policies include an appraisal clause for resolving disputes about the amount of loss. Either party can invoke appraisal when there is a genuine disagreement about damage value—not coverage. Each side selects a competent, disinterested appraiser. The two appraisers select an umpire. An award agreed to by any two resolves the amount dispute. Appraisal typically costs $2,000–$5,000 in appraiser fees but can produce results significantly better than the insurer's initial offer without litigation.
Florida Department of Financial Services Complaints
Filing a complaint with the Florida Department of Financial Services (DFS) or the Office of Insurance Regulation (OIR) puts regulatory pressure on the insurer. DFS handles consumer complaints, investigates insurer conduct, and can sanction carriers for pattern violations. DFS complaints do not directly result in claim payment, but they create a record and sometimes prompt insurers to reevaluate disputed claims—particularly when the complaint documents specific violations of claims handling statutes.
Choosing Professional Help for Large Claims
For property damage claims above $15,000, professional representation typically pays for itself. Options include: a licensed Florida public adjuster (10–15% fee, handles documentation and negotiation); an insurance attorney experienced in Florida property law (CRN, appraisal, litigation); or both working together on complex claims. For hurricane or major storm damage involving disputed wind vs. flood causation, forensic engineers are often essential to establishing covered loss.
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Frequently asked questions
Does Florida's 2023 reform prevent me from recovering attorney fees in an insurance case?
The 2023 reform eliminated the "one-way attorney fee" statute that allowed policyholders to recover fees whenever an insurer underpaid and they won in court. Under the new rules, each side generally bears its own attorney fees. Attorney fees remain available in successful bad faith claims under § 624.155. For small to mid-size disputed claims, the economic calculus for litigation has changed significantly.
My Florida insurer has not responded to my claim for two months. Is this legal?
Florida's Claims Settlement Practices Act requires insurers to acknowledge claims within 14 days, begin investigation within 10 days of acknowledgment, and pay or deny within 90 days of receiving all required documentation. Violations can support a complaint with the DFS and potentially a bad faith claim via the CRN process.
Can I switch contractors after my Florida insurance claim is approved?
Generally yes—you are not required to use a contractor the insurer recommends. However, if you use a different contractor whose price exceeds the insurer's estimate, be prepared to negotiate the difference. Document all estimates and keep all receipts. The insurer's obligation is to pay the reasonable cost of restoring the property, not necessarily the specific amount in their estimate.