Attorneys' fees in Florida insurance claim cases and the doctrine of Assignment of Benefits (AOB) have undergone the most sweeping reforms in decades, fundamentally reshaping how policyholders, contractors, and insurers resolve property damage disputes. If you have a pending homeowners, windstorm, or flood insurance claim in Miami-Dade, Broward, or anywhere in South Florida, understanding the post-HB 837 and SB 2A legal landscape is essential. The rules that governed fee-shifting and AOB arrangements even three years ago no longer apply, and navigating these changes without experienced legal guidance can cost you tens of thousands of dollars.

What Is Assignment of Benefits and Why Did Florida Restrict It?

An Assignment of Benefits (AOB) is a legal arrangement in which a policyholder transfers their right to collect insurance proceeds — and, crucially, their right to sue the insurer — to a third party, typically a contractor or restoration company. For years, Florida's one-way attorney's fee statute incentivized AOB abuse: contractors would accept AOB agreements, file inflated claims, and collect outsized legal fees from insurers even when courts awarded only modest damages. This dynamic contributed to skyrocketing property insurance premiums across Florida and caused multiple major insurers to exit the state entirely.

SB 2A (2022): The Emergency Property Insurance Reforms

Florida's Legislature passed SB 2A in a special legislative session in December 2022, taking effect immediately. SB 2A made sweeping changes to the property insurance market. It eliminated the one-way attorney's fee entitlement for AOB claimants under Fla. Stat. § 627.428 when the assignment involves a covered loss under a property insurance policy. It also imposed new restrictions on AOB agreements under Fla. Stat. § 627.7152, including mandatory written disclosures to policyholders, the right to rescind an AOB agreement within 14 days (or 30 days if no work has commenced), and a prohibition on AOB assignees from charging policyholders more than their deductible. SB 2A also tightened the pre-suit notice requirement under Fla. Stat. § 627.70152.

HB 837 (2023): Elimination of One-Way Attorney's Fees

Building on SB 2A's reforms, the Florida Legislature passed HB 837 in March 2023, which Governor DeSantis signed immediately. The most consequential change for insurance litigation: HB 837 repealed Fla. Stat. § 627.428, Florida's long-standing one-way attorney's fee statute that had allowed prevailing policyholders and AOB assignees to collect attorney's fees from insurers. This provision had existed since 1893 and had been the primary driver of Florida's insurance litigation explosion. HB 837 also repealed § 626.9373 (the surplus lines fee-shifting provision) and § 57.041's interaction with insurance cases. Going forward, attorney's fee shifting in first-party property insurance cases is governed exclusively by the offer of judgment statute, Fla. Stat. § 768.79, and the new bad faith framework.

What Replaced One-Way Fees: The Offer of Judgment Framework

Under the post-HB 837 regime, attorney's fees in property insurance cases may still be recovered through Florida's offer of judgment statute (Fla. Stat. § 768.79) and its procedural counterpart, Rule 1.442 of the Florida Rules of Civil Procedure. If a defendant insurer makes a formal settlement offer that the plaintiff rejects, and the plaintiff ultimately recovers less than 75% of the offer, the defendant can recover its own attorney's fees and costs from the plaintiff. Conversely, if a plaintiff makes an offer of judgment that the insurer rejects and the plaintiff wins more than 125% of that offer, the plaintiff may recover fees. This creates strong pressure on both sides to settle reasonably and fundamentally changes litigation strategy for Florida property insurance disputes.

AOB Restrictions Under § 627.7152 and § 627.7153

Florida Statute § 627.7152, as amended by SB 2A, imposes strict requirements on Assignment of Benefits agreements for property insurance claims. A valid AOB agreement must: be in writing and contain a written, itemized estimate of the services to be performed; include a bolded disclosure that the policyholder may rescind the agreement within the prescribed period; not contain any provision that penalizes the policyholder for rescinding; and not require the policyholder to pay more than their applicable deductible. Fla. Stat. § 627.7153 governs managed repair programs and restricts an insurer's ability to mandate contractor selection, providing policyholders with a middle path when their policy includes such programs. Violations of § 627.7152 can render an AOB agreement unenforceable.

Pre-Suit Notice Requirements Under § 627.70152

Effective July 1, 2021 and continued under SB 2A, Fla. Stat. § 627.70152 requires that before any lawsuit against a property insurer can be filed, the claimant must serve a formal written pre-suit notice on the insurer. The insurer then has 10 business days to inspect the property, and either 45 days (for reopened or supplemental claims) or 60 days total to respond with payment, denial, or a settlement offer. Failure to comply with this pre-suit notice requirement results in dismissal of the lawsuit. The pre-suit period is also when insurers are required to provide a detailed written explanation for any denial or partial payment, creating an important evidentiary record for subsequent litigation or bad faith claims.

Claim Filing Deadlines Under § 627.70132

Florida Statute § 627.70132 (as amended by SB 2A) imposes strict time limits for windstorm and hurricane insurance claims. Initial claims must be filed within 1 year of the date of the hurricane or windstorm loss. Supplemental claims — claims for additional amounts based on the same occurrence — must be filed within 18 months of the date of loss. These deadlines are strictly enforced, and courts have shown little tolerance for late filings even when the policyholder argues they were unaware of additional damage. South Florida homeowners dealing with hurricane or tropical storm damage must act quickly and document all damage thoroughly at the time of discovery.

Bad Faith Claims After HB 837

Florida's bad faith statute, Fla. Stat. § 624.155, allows policyholders to sue their insurer for failing to act in good faith in handling a claim. To bring a bad faith claim, the policyholder must first prevail on the underlying coverage dispute and must have filed a Civil Remedy Notice (CRN) with the Florida Department of Insurance, giving the insurer 60 days to cure the alleged violation. HB 837 amended the bad faith framework to require that the jury first determine liability and damages in the underlying case before bad faith damages — which can include attorney's fees and consequential damages — can be assessed. This bifurcated approach changes trial strategy significantly and typically means bad faith cases take longer to resolve.

What Policyholders Should Do Now

Given the dramatically changed legal landscape in Florida property insurance, policyholders facing a disputed claim should take the following steps: - Document all damage with photographs, video, and written logs from the moment it occurs - Report the claim to your insurer in writing as soon as possible and keep copies of all correspondence - Do not sign an AOB agreement without consulting an attorney — understand what rights you are surrendering - Track all deadlines: 1 year for initial windstorm claims, 18 months for supplemental claims under § 627.70132 - Retain a licensed public adjuster or attorney if the insurer disputes, undervalues, or denies your claim - File the required pre-suit notice under § 627.70152 before initiating litigation - Preserve all evidence of the insurer's communications and claim handling for potential bad faith proceedings

The Impact on Policyholders vs. Insurers

The elimination of one-way attorney's fees and the AOB restrictions under HB 837 and SB 2A were championed by the insurance industry as necessary to stabilize Florida's distressed property insurance market. Insurers argued that the prior fee-shifting regime created a litigation-driven business model that artificially inflated claims. Consumer advocates countered that one-way fees were the primary tool that allowed ordinary homeowners to afford legal representation to fight powerful insurance companies. The practical reality is that policyholders now face a more level — but also more expensive — playing field when their claim is disputed. Choosing an experienced insurance dispute attorney who understands offer-of-judgment strategy and bad faith litigation is more important than ever.

Frequently Asked Questions

Q: Can I still get attorney's fees paid by my insurer if I win my property insurance case in Florida after HB 837? Possibly, but only through the offer of judgment mechanism under Fla. Stat. § 768.79. If your attorney makes a formal settlement demand and the insurer refuses, and you ultimately recover more than 125% of that demand at trial, the insurer may be required to pay your attorney's fees. Strategic use of offers of judgment is now central to Florida insurance litigation. Additionally, if you prevail on a bad faith claim under § 624.155, fees and damages may be available through that route.

Q: Is an AOB agreement still legal in Florida? Yes, AOB agreements are still legal but are now heavily regulated under Fla. Stat. § 627.7152. They must meet specific written disclosure requirements, provide rescission rights, and cannot require payment above your deductible. More importantly, AOB assignees no longer have an automatic right to attorney's fees from the insurer under § 627.428, which eliminates much of the financial incentive that drove abusive AOB practices.

Q: What happens if I miss the 1-year deadline to file my windstorm claim under § 627.70132? Missing the filing deadline under § 627.70132 will almost certainly result in your claim being denied and any subsequent lawsuit being dismissed. Courts have enforced these deadlines strictly. There are very limited equitable exceptions — such as if the insurer's own conduct prevented timely filing — but they are narrow and difficult to establish. If you are approaching the deadline, contact an attorney immediately.

Q: What is a Civil Remedy Notice and do I need one before suing my insurer for bad faith? Yes. Under Fla. Stat. § 624.155(3), you must file a Civil Remedy Notice (CRN) with the Florida Department of Financial Services and serve a copy on your insurer at least 60 days before filing a bad faith lawsuit. The CRN must describe the specific statutory provision the insurer violated and the facts supporting the violation. If the insurer cures the violation within 60 days, the bad faith claim is extinguished. If they do not, you may proceed. Procedural compliance with this requirement is strictly enforced.

Key Takeaways

HB 837 (2023) eliminated one-way attorney's fees under Fla. Stat. § 627.428 for property insurance cases — this is the most significant change in Florida insurance law in a generation
SB 2A (2022) imposed strict requirements on AOB agreements under § 627.7152 and tightened pre-suit notice obligations under § 627.70152
Attorney's fees can still be recovered through the offer of judgment statute (§ 768.79) and bad faith litigation (§ 624.155)
Windstorm claim deadlines are now strictly 1 year for initial claims and 18 months for supplemental claims under § 627.70132
Policyholders must file a pre-suit notice under § 627.70152 before any insurance lawsuit can proceed
The new legal landscape demands experienced Florida insurance dispute counsel — the stakes of getting it wrong are higher than ever

If your property insurance claim has been denied, underpaid, or unreasonably delayed in Miami-Dade, Broward, or surrounding South Florida counties, The Farber Law Firm has the experience to navigate Florida's complex post-HB 837 insurance dispute landscape. Contact us today for a free consultation and find out how we can help you recover the full value of your claim.

This article is for general informational purposes only and does not constitute legal advice. Laws change; consult a licensed Florida attorney about your specific situation.

Attorneys' Fees in Insurance Claim Cases and Assignment of Benefits