Fla Property Insurance Changes Signed Into Law

On May 26, 2022, Governor DeSantis considered and signed CS/SB 2-D: Property Insurance, which was passed by the Florida Legislature during the recent special session. The changes signed by the Governor focus on property insurance. In addition to the creation of the Reinsurance to Assist Policyholders program and many regulatory-related changes, there are changes impacting civil remedy actions and attorney fee claims. Specifically, newly added Section 624.1551 requires claimants in civil remedy actions against property insurers to “establish that the property insurer breached the insurance contract to prevail in a claim for extracontractual damages under s. 624.155(1)(b).” With respect to attorney fees under Sections 627.428 and 626.9373, the following limitations have been added that preclude attorney fees from being recovered by assignees: “In a suit arising under a residential or commercial property insurance policy, the right to attorney fees under this section may not be transferred to, assigned to, or acquired in any other manner by anyone other than a named or omnibus insured or a named beneficiary.” The statutory changes are effective as of July 1, 2022. Here is a link to the changes: https://www.flsenate.gov/Session/Bill/2022D/2D/BillText/er/PDF