TALLAHASSEE — Two years after Florida enacted sweeping Assignment of Benefits reform legislation, insurance litigation in the state has dropped by more than 40 percent, according to data from the Florida Office of Insurance Regulation — but some restoration contractors and consumer advocates say the reform has created new problems.
The 2023 AOB reform eliminated the one-way attorney fee provision that critics said incentivized litigation and restricted the ability of contractors to sue insurers directly on behalf of policyholders. Insurers and the Florida Legislature argued the reform was necessary to stabilize the state's property insurance market.
Restoration contractors operating in Florida report that the reform has shifted bargaining power significantly toward insurance carriers, making it harder to negotiate fair payment for legitimate restoration work. Several contractors have reported that carriers are using the reform as leverage to reduce claim payments below the actual cost of remediation.
Consumer advocates note that homeowners — particularly elderly and low-income policyholders — who previously relied on contractors to navigate the claims process are now left to negotiate directly with insurance adjusters without professional assistance.
The Florida Legislature is expected to review the impact of the AOB reform in the 2026 session, with both insurance industry representatives and contractor associations planning to present data on the law's effects on claim outcomes and market stability.
