Florida's special legislative session just passed SB 2-A — the most significant property insurance reform in a decade. The bill eliminates one-way attorney fees in insurance disputes, restricts assignment of benefits abuse, and creates a reinsurance fund to stabilize the market. Here is what it means for Tampa Bay homeowners and how it could affect your premiums over the next 1-2 years.
What Does the Bill Actually Change?
One-way attorney fees eliminated: Previously, if a homeowner sued their insurer and won, the insurer paid the homeowner's attorney fees. This created a cottage industry of roofing companies and attorneys filing inflated claims. Removing this incentive should reduce frivolous lawsuits and lower carrier costs. Assignment of benefits reform: Contractors can no longer have homeowners sign over their insurance benefits as a blank check for repairs. This was one of the biggest fraud drivers. Reinsurance fund: The state is creating a $1 billion fund to help carriers buy reinsurance (insurance for insurance companies) at lower rates.
Will Premiums Actually Drop?
Not immediately. Insurance Commissioner David Altamaier has said premiums will likely stabilize first, then gradually decrease over 2-3 years as litigation costs decline. Do not expect a sudden drop at your next renewal. But the trend should reverse — instead of 20-30% annual increases, we should see flat-to-slight-decrease within 18-24 months. Some private carriers may re-enter the Florida market if litigation costs drop enough.
What Should Tampa Bay Homeowners Do Now?
Do not wait for premiums to drop on their own. Shop your policy every year — compare at least 3-5 carriers. Get your wind mitigation inspection updated if it is over 5 years old. If your roof is over 15 years, start budgeting for replacement — carriers are increasingly refusing to write policies on older roofs regardless of condition.
Have questions? Barrett Henry, REALTOR® and Broker Associate at REMAX Collective, brings 23+ years of real estate experience. Call (813) 750-0926 or email barrett@nowtb.com.