Why Florida’s Insurance Reforms Matter—And How They’re Helping You

If you’ve lived in Florida long enough, you’ve probably noticed that home insurance isn’t exactly easy—or affordable. Over the past few years, insurance premiums have climbed, carriers have pulled out of the state, and it’s gotten harder for everyday homeowners to find coverage they feel good about. A big part of that problem? Lawsuits. Lots of them. In Florida, legal abuse has driven up the cost of claims across the board, and when claim costs rise, so do your premiums. Until recently, Florida made it surprisingly easy and profitable to sue insurance companies. And while that might sound like a way to keep carriers honest, what it really did was create a system ripe for abuse. Contractors, lawyers, and even third-party groups were cashing in and taking advantage of the system. Filing inflated or unnecessary claims drove costs sky-high for everyone else. That’s why legislation has stepped in with major Florida insurance reforms. Let’s break it down.

Why Were So Many Lawsuits a Problem?

In 2022, Florida accounted for more than 70% of all homeowners insurance lawsuits in the country, even though we only hold about 15% of the nation’s homeowners’ claims. That massive imbalance wasn’t because Florida had more storms or damage—it was because of the legal system imbalance.

For years, Florida had what’s known as a “one-way attorney fee” law. This meant that if a policyholder—or anyone assigned to act on their behalf—sued their insurance company and won, even by just a dollar, the insurance company had to pay all of their attorney’s legal fees. And those fees? They weren’t capped. In many cases, attorneys walked away with tens of thousands of dollars in fees on claims worth far less. As long as a court deemed the fees “reasonable,” the insurer had to pay them in full. That guarantee of payout, with virtually no financial risk to the policyholder or their lawyer, made suing insurance companies a business model.

Then came the Assignment of Benefits (AOB) loophole.

By having homeowners sign AOBs, contractors—like roofers or water mitigation companies—could step in and file claims and negotiate with the insurer. They could even sue on the homeowner’s behalf. Many took advantage of this setup, inflating repair costs or filing lawsuits at the first sign of a denied or reduced payout. Roofing fraud in particular became rampant. Contractors went door-to-door offering “free” roofs and promising insurance would foot the bill.

The result? A flood of lawsuits that drained resources and overwhelmed insurers. The more lawsuits there were, the more insurance companies had to spend defending themselves, even when the cases weren’t legitimate.

Those costs didn’t just disappear. They got passed on to you in the form of higher premiums.

What Changed with Florida Insurance Reforms—and Why Does It Matter?

In late 2022 and 2023, Florida lawmakers stepped in with a series of reforms to try and stop the bleeding. Here are two of the biggest changes:

1. No More “One-Way” Attorney Fees

Each party is  now responsible for their own legal fees. That levels the playing field and cuts back on lawsuits that never should’ve happened in the first place.

2. Ending the “Assignment of Benefits” (AOB) Loophole

This change stops contractors from taking control of insurance claims and suing companies on your behalf—sometimes without you even knowing. Now, policyholders stay in the driver’s seat of their own claims, and carriers don’t get blindsided by surprise lawsuits from third parties.

What Do Florida Insurance Reforms Mean for You?

These reforms were designed to make Florida’s insurance market more stable. And we’re already seeing early signs of progress. More insurers are returning to Florida or expanding their offerings. New policy options are opening up. Premiums are slowly starting to level out. And while that doesn’t mean your rate will drop overnight, it does mean we’re moving in the right direction.

But What About Consumer Rights?

That’s a fair question—and one that’s been raised a lot. Some critics argue these changes make it harder for homeowners to sue if their claim is wrongfully denied. But the truth is, you can still take legal action when it’s truly necessary. These reforms aren’t about silencing valid concerns. They’re about stopping the abuse that caused rates to rise in the first place. When fewer bad actors game the system, more honest homeowners can access fair, affordable insurance.

We’re Here to Help You Navigate It All.

At O’Quinn Insurance, we’re not just here to quote a policy—we’re here to help you understand the market and make the best decision for your home and family. These legislative changes might seem technical, but they have a direct impact on your wallet and your options. And our job is to guide you through it all. If you have questions about what these changes mean for your coverage, or you’re curious about your options, don’t hesitate to reach out. Contact us at 386-200-9534 or fill out our Free Quote Form to get started reviewing your options with one of our expert team members.