In July 2025, Florida reported a remarkable 25% drop in property insurance litigation, a direct
result of reforms like Senate Bill 2-A and HB 837, enacted to curb excessive lawsuits. While
these changes aim to stabilize the state's insurance market, they’ve made it tougher for
commercial property owners to challenge insurers. As a policyholder, understanding these shifts
is critical to securing fair compensation for your property damage claims.
What’s Driving the Litigation Decline?
Florida’s reforms, including the prohibition of Assignment of Benefits (AOB) and tightened
bad-faith claim rules, have reduced frivolous lawsuits but also raised the bar for legitimate
claims. Insurers are now emboldened to deny or underpay claims, knowing policyholders face
stricter deadlines (one year to file) and limited legal recourse. For commercial real estate
owners, this means navigating a complex landscape where insurers may exploit policy
ambiguities to minimize payouts.
Key Challenges for Policyholders in 2025
● Shorter Filing Windows: The one-year claim filing deadline, down from two, demands
swift action after a loss. Delays can lead to outright denials.
● AOB Ban: You can no longer assign benefits to contractors, meaning you must directly
manage claims, increasing the risk of insurer pushback.
● Bad-Faith Hurdles: Proving bad faith now requires a court judgment against the insurer,
making it harder to hold them accountable for unfair practices.
How to Fight Back
1. Document Everything: From storm damage to fire losses, thorough photos, videos, and
contractor estimates are your first line of defense.
2. Know Your Policy: Review coverage limits and exclusions, especially for wind, flood, or
business interruption, to avoid surprises.
3. Partner with a Policyholder Lawyer: An experienced attorney can counter insurer
tactics, negotiate settlements, or pursue litigation if needed. At our firm, we’ve helped
clients recover millions by challenging wrongful denials.Why This Matters Now
The litigation drop signals a stronger insurance market, but it also means insurers are more
aggressive in denying claims to cut costs. With Florida’s hurricane season in full swing as of
September 2025, commercial property owners must act proactively. Don’t let reforms tilt the
scales against you—contact our team for a free case review to ensure your insurer honors its
obligations.
