As we move into the Atlantic Hurricane season, Florida policyholders should keep in mind the recent legislative changes enacted by the Florida Legislature in December of 2022 and January of 2023 (SB 2-A and HB 837). This legislation represents the most substantive changes to the laws governing property insurance claims in more than a hundred years.
Time to File a Claim
Florida Legislature shortened the time policyholders must report a claim from two years to one year from the date of sustained damages. That means if a home was damaged as a result of Hurricane Milton, the deadline to file a claim is early October 2025. Also, the time to supplement a claim was shortened from three years to eighteen months. That means if additional damages are discovered exceeding the insurance company’s original estimate, those supplemental claims must be filed a year and a half from the date of loss. A failure to file a claim on time means that the insurance company can completely deny coverage for the loss.
Repeal of Attorney Fee Statute
Florida Statute section 627.428 was repealed in December of 2022. This statute allowed a policyholder to recover attorney fees if forced to seek legal representation to secure payment owed under an insurance policy. This was important, as litigation can be costly, and depending on the value of the claim, litigation costs can exceed the value of the actual claim. For example, many policies have a $10,000 limit on water damage. Those types of cases can be tricky, as mandatory filing fees, experts, court costs, etc., can create a situation where little is left for a homeowner. Fortunately, many firms (including ours) still take these cases on contingency. That means there are no upfront costs, and no money is owed unless the firm prevails on behalf of the client. While statutory attorney fees are no longer available, a skilled lawyer should still be able to offset litigation costs through the Florida Rules of Civil Procedure, as well as holding the insurance company accountable for any bad faith claims handling.
Claims Must Be Paid Within 60 Days
The new laws shortened the time insurance companies must pay claims from 90 days to 60 days. That means, after a claim is reported, the insurer must communicate, investigate, make a coverage decision, and issue payment within 60 days. A failure to do so could be evidence of bad faith claims handling practices. Policyholders should remain vigilant throughout the claims process and promptly comply with any request for information by the insurer. A failure to do so could result in the insurance company being able to extend that 60-day deadline and postpone payment.
Allowance of Mandatory Arbitration
Starting in 2023, insurance companies were able to include binding arbitration in policies. Arbitration is a process where the insured loses their ability to have their dispute heard before a judge and jury. Instead, the action is heard by an Administrative Law Judge. Arbitrations have proven to be extremely favorable to insurance companies, with Citizens Property Insurance winning nearly 100% of all arbitrations. Importantly, not all Citizens policies contain this endorsement. Our firm offers a free policy review that Floridians can take advantage of prior to hurricane season. If you are interested in a free policy review, click here for more information.
Free Consultation
If your home has been damaged and you have made a claim you feel was improperly evaluated by your insurance company, our firm offers free consultations with a property damage attorney. Property insurance cases are very complicated and are subject to a host of ever-changing laws. Our team of attorneys can help ensure that your insurance company is held accountable in paying for the covered damage to your home or business.
If you are interested in speaking with one of our property damage lawyers, click here.
