Florida's 2022\u20132023 insurance reforms fundamentally changed how attorneys' fees work in property insurance disputes \u2014 and how Assignment of Benefits (AOB) contracts function. Here's what policyholders and contractors need to know in 2026.
Before SB 2A (December 2022) and HB 837 (March 2023), Florida's one-way attorneys' fee statute (Fla. Stat. § 627.428) required insurers to pay the policyholder's attorneys' fees whenever the policyholder prevailed. That statute has been repealed for most property insurance disputes — fundamentally shifting the economics of insurance litigation.
Policyholders may now recover attorneys' fees only under narrow circumstances: when an offer of judgment is exceeded by 25% under Fla. Stat. § 768.79, or in cases involving bad-faith judgments under Fla. Stat. § 624.155. Contingency arrangements have largely replaced statutory fee-shifting.
Florida AOB law now requires assignments to meet strict statutory formalities: written contracts, 14-day rescission rights, itemized cost estimates, and licensing requirements for assignees. Non-compliant AOBs are void and unenforceable.
For policyholders: contingency-fee representation is now the dominant model. For contractors: AOB-based work requires careful compliance, and direct-pay arrangements may be more practical. For insurers: the playing field has tilted significantly in their favor — making aggressive, experienced policyholder representation more important than ever.
The Farber Law Firm represents Florida policyholders, condo associations, and businesses in insurance disputes — and we structure our fees to align with your recovery. Call 8888-FARBER.
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