TALLAHASSEE, Fla. — The Florida House just passed sweeping legislation that overhaul the state’s property insurance system, which has struggled due to insolvencies, high costs and major storms.  Unfortunately, this round of reforms is a massive overcorrection that takes away homeowners’ property rights and leaves Floridians at the mercy of their insurance company

The sweeping changes will put huge money once again in the insurance company pockets at the expense of the consumer. As the coffers of the insurance company fill, we will once again see record bonuses paid out the CEO of these insurance companies. This one sided, insurer friendly legislation, will surely bring back those insurance companies that left Florida and have new ones enter all to take advantage of these new pro insurance company laws.

 

Unfortunately, the house did not use this as an opportunity to demand from the insurance companies’ immediate relief to the consumer. Despite multiple broad-reaching property insurance reforms passed by industry supporters in the past three sessions, there have been minimal improvements to the insurance marketplace that benefit consumers

 

While the insurance companies will certainly benefit from these changes, it is only speculative if the consumer will see any real benefit. The greatest harm to the consumer is that SB 2A eliminates Florida’s one-way attorney fee provision. This was the biggest stick the consumer had against an insurance company when it wrongly denies or grossly low balls an insurance claim. Under the new measure, the consumer will be limited or hesitant to ever go against an insurance company to right a wrong, leaving consumers defenseless.

 

Politicians, consumer advocates, and the Florida Justice Association reminded lawmakers that the one-way attorney fee provision was enacted to level the playing field for homeowners who are forced to sue when an insurance company improperly denies a claim. However, this realty was ignored to favor the Insurance industry.

 

Ultimately, this bill will create a $1 billion reinsurance fund, reduce consumers right to litigation, and force some customers to leave Citizens for a more expensive insurer. Although the changes will also force insurers to respond to claims more promptly (although good luck having a consumer enforce this insurance company delays) and is supposed to increase state oversight of insurers’ conduct following hurricanes (especially considering past insures bad faith conduct), however as noted, the current proposal does virtually nothing to provide immediate help for consumer facing huge rate increases and defiant insurance companies unwilling to pay fairly on a claim.

 

Don’t let the insurance company have the last word. The Consumer law Office and their team of Property Damage Attorneys fight insurance companies to get our residential and commercial policyholders the relief they are entitled to.

 

Your insurance company has the resources to hire experts to protect their interests; your representation should be no different.

 

Contact CLO Today for a FREE Comprehensive Consultation 305-940-0924

Visit https://consumerlawoffice.com/

 

We only get paid when you get paid by your insurance company.