Florida's insurance reform legislation has significantly limited the ability of restoration contractors to accept assignments of insurance benefits from homeowners and file claims on their behalf, fundamentally changing how water and storm damage claims are processed in the state.
Under the reforms, which took effect in recent years and continue to shape the 2026 claims environment, contractors can no longer use assignment of benefits agreements to take over a homeowner's insurance claim and negotiate directly with the carrier.
The reforms were designed to address what legislators and insurers described as widespread abuse of the assignment of benefits system, which they said was driving up insurance costs and litigation in Florida.
For restoration contractors, the reforms have created significant operational changes. Companies that previously relied on assignment of benefits as a business model have had to adapt, developing new approaches to working with homeowners and insurance carriers.
The Florida hurricane insurance policy dispute landscape has also been affected by the reforms, with policyholders now having to take a more active role in managing their own claims rather than delegating that responsibility to contractors.
