> Florida lawmakers reconsider attorney fee ban in insurance lawsuits
Florida lawmakers reconsider attorney fee ban in insurance lawsuits
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Florida lawmakers are moving to reverse a controversial 2022 reform that barred policyholders from recovering attorney fees in lawsuits against insurers.
The change comes amid rising complaints of unpaid claims and allegations of insurers hiding profits while reporting losses.
House Bill 1551, which passed its first subcommittee with a 15-1 vote, signals bipartisan support for restoring some consumer protections.
Hurricane victim Kris Yarborough, whose home remained uninhabitable for months after hurricanes Helene and Milton, had expressed frustration over denied or delayed claims.
“You expect that your insurance companies are going to take care of you when it’s all said and done,” she said.
The 2022 reform, part of a broader effort to stabilize Florida’s troubled insurance market, aimed to curb frivolous lawsuits but has faced criticism for leaving consumers with little recourse.
Rep. Hillary Cassel (R-Hollywood), a sponsor of HB 1551, questioned whether the reform went too far.
“Did we completely deny good consumers with valid claims access to the courts to hold insurers accountable?” she asked.
Opponents, including industry representatives, warn the bill could destabilize the market by encouraging excessive litigation.