TALLAHASSEE — Florida's 2023 assignment of benefits (AOB) reform legislation was intended to reduce the litigation that had been driving up homeowner insurance costs by eliminating one-way attorney fees in property insurance cases and restricting the use of AOB agreements. Two years later, the results are mixed.
The number of property insurance lawsuits filed in Florida has declined significantly since the reform took effect, from a peak of more than 100,000 per year to approximately 65,000 in 2025 — a reduction of about 35 percent. This is a meaningful improvement, but the number of lawsuits remains far above the national average for a state of Florida's size.
Insurance premiums in Florida have not declined as much as reform proponents had hoped. The average homeowner insurance premium in Florida is still approximately three times the national average, reflecting the state's high catastrophe exposure as well as the lingering effects of years of litigation-driven losses.
Several carriers that had exited the Florida market have indicated that they are monitoring the post-reform environment before deciding whether to re-enter. Citizens Property Insurance Corporation, the state-backed insurer of last resort, has begun a depopulation program to move policies to private carriers, but progress has been slow.
For restoration contractors in Florida, the AOB reform has changed the dynamics of the claims process. Contractors who previously relied on AOB agreements to pursue insurance claims on behalf of homeowners must now work more closely with homeowners to navigate the claims process, and must be more careful about the documentation they provide to support claims.
