Rising Homeowners Insurance Costs & Legislative Changes
By Andrew Boloy, Esq.
With summer being a peak season for the real estate market in Florida, homeowners who purchased in past summers likely faced a surge in their homeowners insurance premiums as they came up for renewal. In addition to higher premiums, homeowners in Florida must now manage the effects of Senate Bill 2A, which amends Florida Statute Sections 627.428 and 626.9373. This legislation clearly states that “there is no right to attorney fees” in lawsuits related to residential or commercial property insurance policies. Moreover, it removes references to attorneys’ fees from the pre-suit notice provision in Section 627.70152.
The elimination of one-way attorneys’ fees is a significant shift for homeowners in Florida. For policyholders, this change has several key factors to consider:
- Increased Financial Risk: Without the guarantee of recovering attorneys’ fees, policyholders face increased financial risks when handling claims with their insurance company. Legal battles could become more costly and may discourage homeowners from seeking their rightful compensation.
- May Limit Access to Justice: Removing one-way attorneys’ fees might make it harder for policyholders, especially those with limited funds, to get justice. Rising litigation costs could prevent some homeowners from pursuing legitimate claims.
- Reducing Frivolous Claims: Eliminating the fee shift aims to reduce frivolous lawsuits, making dispute resolution more fair and more efficient. Policyholders with valid claims could see faster settlements.
As Florida homeowners face skyrocketing premiums, it’s important to stay informed and proactive. Reviewing your insurance policy regularly, comparing quotes, and understanding the impact of recent legislative changes can help you manage costs and ensure adequate coverage. If you find yourself in a dispute with your homeowners insurance company, the attorneys at Pike and Lustig are dedicated to ensuring you receive the coverage and compensation you deserve.
Strategies to Help Lower Your Homeowners Insurance Premiums
Wind-Mitigation Update
Review your wind mitigation inspection to identify areas for improvement and note any updates. Adding hurricane shutters or reporting home renovations can lower your premium.
Shop Around
Homeowners insurance rates vary widely in Florida, so compare quotes from multiple companies. Ensure your new policy is active before canceling the old one to avoid coverage lapses.
Increase Deductibles
Opting for a higher deductible can lower your homeowners insurance premium, especially if you have few past claims and can afford higher out-of-pocket costs.
