Insurance Claims for Florida: a clearer read on inspection scheduling, deadline control, and what the file needs first

Florida's property insurance market is in sustained crisis. Between 2020 and 2023, twelve Florida insurance companies went insolvent, multiple withdrew from the state, and premiums in South Florida reached among the highest in the country. Hurricane Ian (2022) accelerated the market collapse. In response, the Florida Legislature passed SB 2-A in December 2022 and SB 7052 in 2023, making sweeping changes to Florida insurance law — including eliminating the longstanding one-way attorney fee provision (§ 627.428) for most property insurance cases and eliminating Assignment of Benefits (AOB) for insurance claims. These changes fundamentally alter how Florida insurance claims and disputes work.

The End of One-Way Attorney Fees for Most Property Claims

Florida's traditional § 627.428 one-way attorney fee provision required insurers who lost in court to pay the policyholder's attorney fees. This was a powerful litigation tool that encouraged insurers to settle meritorious claims — a small delay fee after losing trial could equal the insured's attorney bill, so insurers had strong incentive to pay valid claims promptly. SB 2-A (effective March 2023 for most policies) eliminated the one-way attorney fee provision for property insurance claims. This dramatically changes the risk-benefit calculation for policyholders considering litigation against their property insurer — the availability of attorney fees that previously made meritorious small claims economically viable may no longer apply. The § 627.428 fee provision remains available for life insurance and health insurance claims.

Assignment of Benefits Elimination

Florida's AOB industry — where contractors, roofers, and restoration companies would take an assignment of a homeowner's insurance claim and sue the insurer on the homeowner's behalf — was eliminated by SB 2-A. Effective March 2023, property insurance policies cannot be assigned to contractors for the purpose of filing insurance claims. This change was intended to address widespread AOB fraud but also eliminates a tool that legitimate contractors had used to ensure payment from insurers. Homeowners must now deal directly with their insurer for property damage claims — they cannot sign over the claim to a contractor.

First-Party Bad Faith: Fla. Stat. § 624.155

Florida allows first-party bad faith claims against your own insurer under § 624.155. Bad faith — where an insurer fails to settle a valid claim promptly and in good faith — can expose the insurer to extracontractual damages (damages beyond the policy limits). However, the bad faith process in Florida is more procedurally complex than in many states: the insured must first file a Civil Remedy Notice (CRN) with the Florida Department of Insurance, giving the insurer 60 days to "cure" the bad faith conduct. Only if the insurer fails to cure within 60 days can the policyholder proceed with a bad faith lawsuit. The bad faith claim is also dependent on first proving the underlying coverage dispute — a favorable judgment on the insurance claim must precede or accompany the bad faith case.

Citizens Property Insurance: Florida's Insurer of Last Resort

Citizens Property Insurance Corporation is Florida's state-created insurer of last resort, originally intended as a small backstop for high-risk coastal properties. Due to the collapse of the private market, Citizens now insures over 1.3 million Florida properties, making it the largest property insurer in the state by policy count. Citizens policies have specific characteristics: coverage forms differ from standard market policies; Citizens has a "takeout" program where private insurers can absorb Citizens policyholders; and Citizens assessments (surcharges after a major storm) can be levied on almost all Florida insurance policies, including auto insurance, in the event of large losses. Citizens has been engaged in a depopulation effort since 2023 — policyholders may receive a "take-out offer" from a private insurer; accepting one typically means leaving Citizens permanently.

Florida's PIP and Auto Insurance Bad Faith

Florida's PIP (Personal Injury Protection) regime under § 627.736 governs first-party auto medical payments. PIP insurers who deny or delay payment without reasonable proof of lack of coverage can face attorney fee exposure under the remaining statutory provisions and bad faith claims. Third-party bad faith — where a liability insurer fails to settle within policy limits and an excess judgment results — remains available in Florida and governed by Florida case law (Cunningham v. Standard Guaranty Ins. Co. and its progeny). An insurer who fails to tender policy limits when a reasonable opportunity to settle exists can be liable for the full excess judgment.