Florida's property insurance landscape underwent a seismic shift following the passage of Senate Bill 2A in December 2022. The bill effectively eliminated the one-way attorney fee statute in property claim disputes with insurers. This change has left many homeowners vulnerable and uncertain about how to proceed with their claims because attorneys no longer have incentive to represent clients in most property insurance disputes. While the road ahead is more challenging, there are still options—particularly for larger residential and commercial claims.

Background


Previously, Florida Statutes Sections 627.428 and 626.9373 provided a significant advantage to policyholders. If the policyholder successfully sued their insurance company for failing to fully compensate them on a property claim and recovered any amount, the insurer was responsible for covering their attorney fees. These provisions acted as a powerful deterrent against insurance companies unfairly denying or undervaluing claims as they knew they could be held liable for substantial legal costs. Even with that deterrent, however, insurers regularly denied or underpaid claims without justification. Consequently, Florida courts have been backed up for years with thousands of property damage claims from Hurricane Irma, Hurricane Ian and other recent weather-related events.