A bill that addresses the drivers of litigation cost in the property insurance market has passed the Florida Senate Rules Committee and will now head to the Senate floor.
Florida Senate Bill 76 includes provisions designed to reduce the cost of property insurance lawsuits by targeting excessive attorney fees, which the bill claims incentivize lawsuits and increase property insurance costs. The bill also addresses roof damage claims in which neighborhoods are often canvassed and homeowners solicited to file claims for repairs. The bill was sponsored by state Sen. Jim Boyd (R-Bradenton).
The bill has the support of the Personal Insurance Federation of Florida (PIFF), which says the state is in the midst of an insurance crisis driven by increasing litigation and rising reinsurance costs.
“We are facing a litigation crisis in Florida,” said Michael Carlson, president and CEO of PIFF. “It’s the consumers who get hit with higher insurance rates at the end of the day when insurance companies have to compensate for litigation factories who drum up lawsuits to win big attorney-fee payouts. We’re thankful to Senator Boyd and the Senate Rules Committee for getting this bill close to the finish line, and we hope the House companion will include important consumer protections in the end.”