The recent and unprecedented rise in insurance premiums facing Floridians has alarmed many of the State’s representatives in Tallahassee. In response, Governor Ron DeSantis called a special legislative session to address the issue.

Large Fortune 500 insurance companies, such as State Farm and Allstate, lay the blame for the rise on the amount of lawsuits filed in the State. Others lay the blame equally on the insurance companies and their improper denial of claims. The rise in the claim numbers are do more to Florida’s geographical location in the heart of hurricane alley, with some of the strongest thunderstorms in the Country. Add on to this the impact of climate change, with sea level rising and stronger storms and more devastating hurricanes, have certainly not helped the situation.

Regardless, politicians in Tallahassee passed SB 2-D. This law prevents insurers from automatically denying homeowners coverage to residents because of the age of their roof, if that roof is under 15 years old. If it’s over 15 years old, coverage cannot be denied without allowing homeowners to get a roof inspection.

But, the main controversy revolves around the law’s removal of attorney’s fees in cases where contractors and water removal specialists sue insurers for payment of their services. This process, known as assignment of benefits, allow professionals who repair home damage not to charge the homeowner directly, but instead gives them the right to sue on behalf of the homeowner to get paid. That way, the homeowner does not pay for fixing the damage to their home, but the insurer does.

If the claim is rightfully denied, and upheld in the courts, the contractors and attorneys suing recover nothing, the homeowner has their home fixed, and the insurer is out nothing. But if the insurer improperly denies the claim, then the contractors and remediators get paid their rightful fees and the attorneys recover for their work. But now, attorneys cannot recover for the amount of their work on these cases. The legislature hopes this will disincentive litigation. However, it may also disincentivize homeowners from seeking repairs and incentivize insurers to deny more claims.

The Restoration Association of Florida and Air Quality Assessors, LLC, has sued the State on behalf of remediation experts. They claim the law violates these professionals’ Florida constitutional right to access to the courts. More information about this lawsuit against SB 2-D can be found in this CBS article.

Time will only tell how SB 2-D will impact Florida’s homeowners insurance premium crisis. But, this new bill doesn’t change the ability of a homeowner to bring suit against an insurance company who has improperly denied a good, rightful insurance claim. That’s what we’re here to do at DLB Law. Please call us to set up a consultation. We will fight for your rights!