Governor Ron DeSantis: The Impact of Policy Changes on Florida's Property and Casualty Insurance Landscape

Since taking office, Governor Ron DeSantis has enacted sweeping reforms in Florida’s property and casualty insurance sector. These legislative changes, though touted as solutions to stabilize the insurance market, have sparked widespread debate and criticism for their impacts on consumers, policyholders, and small businesses.

Eliminating Assignment of Benefits (AOB)

One of the most controversial moves was the elimination of Assignment of Benefits (AOB) agreements. Historically, AOB allowed homeowners to transfer their insurance claim rights to contractors, enabling faster repairs and reducing the burden on policyholders. Proponents argued that AOB reforms would reduce fraud and excessive litigation, but critics contend that its removal disproportionately shifts the burden back onto homeowners, forcing them to navigate complex claims processes on their own.

Implementation of Notice of Intent (NOI)

DeSantis further introduced the Notice of Intent (NOI) requirement, a pre-suit mandate forcing policyholders to notify insurers of potential legal action before filing lawsuits. While insurers welcomed this as a way to reduce litigation, it has been seen by many as a delay tactic, often leaving policyholders without timely resolutions. Critics highlight that this change benefits insurers at the expense of homeowners struggling with unresolved claims, especially during times of crisis such as hurricanes.

Elimination of Statutory Attorney Fees for Prevailing Parties

Perhaps the most significant—and contentious—change was the removal of statutory attorney fees for prevailing policyholders. This law, previously a cornerstone of Florida’s consumer protection framework, ensured that homeowners who won cases against insurers could recover legal fees. The removal of this provision has created a chilling effect, discouraging homeowners from challenging wrongful claim denials due to the risk of exorbitant legal costs.

The Broader Consequences

Under these reforms, Florida’s insurance market has seen mixed outcomes. While DeSantis claims these changes were necessary to combat fraud and stabilize the market, critics argue the real winners are large insurance companies. Consumers, meanwhile, face rising premiums, reduced coverage options, and greater barriers to justice. The reforms have left many Floridians questioning whether their interests were sacrificed for corporate gains.

Looking Ahead

Governor DeSantis’s policies have undeniably reshaped Florida’s insurance landscape, but at what cost? As premiums continue to climb and policyholders struggle with limited recourse, the spotlight remains on Tallahassee to address the growing challenges faced by Floridians. If these reforms were truly aimed at protecting homeowners, the outcomes suggest there’s still a long way to go.

Your Thoughts? What has been your experience navigating Florida’s property insurance system under these new laws? Share your stories and insights in the comments.