Florida is the “sunshine state” but it also is often pummeled by wind and water and as a result the cost of property insurance is high.
But according to an insurance industry analysis, legislative reforms in Florida have lowered the “lawyer tax” costs, keeping insurance rates from being even higher than they might be otherwise.
The cost of legal system abuse affects not only insurance rates but also housing affordability, one of the most discussed issues in government.
The American Property Casualty Insurance Association asserts that since the reforms took effect, Florida saw homeowners insurance litigation drop nearly 50% in just 18 months
The analysis examined several factors, including premise liability lawsuits against multifamily property owners, assignment of benefits abuse, construction-related litigation and fraud, staged injury schemes, and giant verdicts that increase transportation and building material costs.
“Florida proved that curbing legal system abuse works,” said Robert Gordon, APCIA’s senior vice president, policy, research and international. “Litigation dropped sharply, insurers reduced rates, and property-casualty insurance costs fell by 14.5% — helping stabilize insurance markets and make housing more affordable for families and renters.”
In 2022 and 2023 the Florida Legislature enacted reforms that were opposed by tort lawyers.
The Legislature enacted major changes, including:
• Eliminating one‑way attorney fees in property claims
• Restricting assignment‑of‑benefits lawsuits
• Shortening claim filing deadlines
• Strengthening Citizens Property Insurance Corp. depopulation
• Creating a state reinsurance program
• Tightening roof‑claim rules and litigation incentives
These were aimed at reducing frivolous litigation, which was blamed for Florida’s topsy-turvy situation: only 6.9% of U.S. property claims but 76% of lawsuits in 2021.
APCIA says tort costs dropped 50 percent after the reforms and dozens of companies returned to the market or filed for rate decreases. None filed for rate increases in 2024.
