Florida property insurance companies, their policyholders, and repair contractors are starting the New Year with a new law designed to reform an out-of-control marketplace. The Florida Legislature in December passed comprehensive measures to stem high insurance and reinsurance rates, carrier insolvencies, inflated claims, excessive litigation, and an overly-competitive residual market.
Attorney Fees & AOBs:
You have to admit (the new law) is going to make a profound change in whether an attorney brings a suit or not.” According to the Florida Office of Insurance Regulation, Florida has 7% of the nation’s homeowners insurance claims yet 76% of the nation’s homeowners insurance lawsuits.
The new law’s litigation reform does not eliminate a policyholder’s right to sue their insurance company. Allowing proposals for settlement and optional arbitration will allow lawsuits to be resolved more quickly. We believe it will be a huge advantage that could reduce the average length of a lawsuit from 750 days down to 310 to 320. It’ll cut the length of the suit process in half and it will eliminate the suit process if they accept the arbitration language in the policy.