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Florida’s property insurance landscape has undergone dramatic transformation in recent years, and the changes continue in 2025. Whether you are filing a hurricane damage claim, dealing with water damage from a plumbing failure, or fighting a claim denial, understanding how Florida insurance reform 2025 affects your rights is essential for protecting your home and your financial security.
This guide explains the major legislative changes, what they mean for Florida homeowners, and how to navigate the new claims environment.
Background: The 2022-2023 Reforms
To understand the current landscape, it helps to review the sweeping reforms enacted in 2022 and 2023. Florida’s property insurance market was in crisis, with insurers fleeing the state, premiums skyrocketing, and litigation rates far exceeding national norms. The legislature responded with Senate Bill 2-A and related laws designed to stabilize the market.
Key changes included the elimination of one-way attorney fees, which had allowed policyholders who prevailed in court to recover their legal costs while insurers could not. The legislature also banned assignment of benefits agreements for new policies, shortened claim filing deadlines, and created the Florida Optional Reinsurance Assistance program to provide affordable reinsurance for carriers.
Supporters argue these reforms have worked. Insurance litigation has dropped significantly, new carriers have entered the market, and rate increases have slowed. Citizens Property Insurance is no longer the state’s largest insurer and has even proposed rate decreases for some policyholders.
What Is Happening in 2025?
The 2025 Florida legislative session has seen numerous bills filed that could modify or reverse some of the 2022-2023 reforms. The most significant proposals include House Bill 1551 and Senate Bill 554.
House Bill 1551: Restoring Fee-Shifting
House Bill 1551 would restore fee-shifting for prevailing parties in property insurance disputes. Under the proposed law, if a homeowner wins a judgment larger than the insurer’s last settlement offer, the insurer would be required to pay the homeowner’s attorney fees. Conversely, if the insurer’s offer exceeds the judgment, the homeowner could be responsible for the insurer’s fees.
Supporters argue this levels the playing field for homeowners who must hire attorneys to fight unfair denials. Critics warn it will encourage frivolous litigation and drive up insurance costs.
Senate Bill 554: Comprehensive Claims Reform
Senate Bill 554 would impose extensive new regulations on insurers and claims handling. Key provisions include mandatory mediation before lawsuits can be filed, requirements for insurers to provide initial written estimates within seven days, sliding-scale attorney fee formulas, and enhanced transparency requirements for insurer operations.
Industry observers warn that SB 554 could significantly increase insurer costs and potentially destabilize the market improvements achieved in recent years.
Current Law: What Homeowners Need to Know
As of early 2025, the following rules apply to Florida property insurance claims:
- You must file your initial property insurance claim within one year of the date of loss.
- Supplemental claims must be filed within 18 months of the date of loss.
- The statute of limitations for filing a lawsuit is three years from the date of loss.
- Assignment of benefits agreements are prohibited for policies issued after January 1, 2023.
- There is no automatic right to attorney fees for prevailing policyholders; fees are governed by offer of judgment procedures.
- Insurers must pay undisputed claims within 60 days.
How These Changes Affect Your Claim
The reformed legal landscape has practical implications for how you approach an insurance claim:
Act quickly. With shortened deadlines, you cannot afford to wait to report damage or file claims. The one-year deadline for initial claims is firm, and missing it could mean losing your right to compensation entirely.
Document thoroughly. Strong documentation is more important than ever. Insurers know that litigation is less likely under the new rules, which may embolden some to lowball claims. Detailed photos, videos, and contractor estimates provide leverage in negotiations.
Understand the risks of litigation. Without automatic fee recovery, filing a lawsuit carries financial risk. You should carefully evaluate any settlement offer against the potential costs of going to court.
Get professional help early. Consulting with a property damage attorney before accepting a settlement can help you understand whether the offer is fair and what options you have if it is not.
Looking Ahead
The Florida insurance market remains in flux. Whether the 2025 legislative session produces significant changes or maintains the status quo, homeowners must stay informed about their rights and responsibilities.
At Krapf Legal, we closely monitor legislative developments and adapt our strategies to help clients navigate the changing landscape. If you have questions about how the current laws affect your claim, or if you are dealing with a denied or underpaid claim, contact us for a free consultation.
