Setting the Record Straight: Bloomberg Story Presents an Incomplete Picture on the Impact of Florida’s Legal System Abuse Reforms

The July 29, 2026 Bloomberg story "Florida's Fix for Insurance Crisis Puts More Risk on Homeowners" presents an incomplete picture about the impact of the 2022-2023 legal system abuse reforms on insurance affordability and claims handling.

The article minimizes the measurable improvements in the state's insurance market due to the legal system abuse reforms, including lower rates, improved affordability, more options for coverage, and reduced excessive litigation costs. The article highlights concerns around claims closed without payment that have already been de-bunked by the Florida Office of Insurance Regulation.

The article also inaccurately states that the insurance industry says homeowners were weaponizing natural disasters to file fraudulent claims. The industry has consistently stated that billboard lawyers filing excessive amounts of lawsuits were the driving force behind Florida's property insurance market challenges - not homeowners. As an example, a now disbarred South Florida attorney and his associates filed nearly 10,000 lawsuits against property insurers in Florida - some of which were filed without the homeowners knowledge.

Florida had become an extreme outlier when it came to property insurance litigation. At the peak of the state's insurance challenges, Florida accounted for about 9 percent of homeowners insurance claims nationwide, but 79 percent of the nation's homeowners insurance lawsuits. Since the reforms, these trends have been improving. Personal residential litigation filings dropped 25% in 2025 compared to the previous.

What the Article is Missing:

1. Data from the Florida Office of Insurance Regulation (OIR) confirms that the Florida insurance market is sustainable and healthy, thanks to the legal system abuse reforms, with lower rates and more companies entering the market.

• Since the reforms, OIR has received over 190 residential filing requests for rate decreases or 0% increases.
• The 30-day average request for homeowners rates is -6.9% compared to -1.4% one year ago.
• 20 new insurance companies have entered the market to offer coverage since the reforms were implemented. This creates more competition in the marketplace and gives consumers more choices when shopping around for a policy.
• According to a report by The Perryman Group,Florida's tort reforms have driven an average 14.5% reduction in property and casualty insurance costs compared to what would have occurred without reform.
• Florida Citizens' policy count now stands at 336,000 policies, down 76 percent from a peak of 1.41 million policies in October 2023.

2. One-way attorney fees were a primary driver of excessive litigation in Florida.

• Before the reforms, one-way attorney fees created a financial incentive to litigate claims that could have been resolved without a lawsuit. Attorneys could collect tens of thousands of dollars or more in fees even when the policyholder only received a small recovery.
• For example, in one case where a trial resulted in a verdict of $55,148 including interest, the court awarded $249,562 in attorney fees and costs. Meaning the attorney received more than four times the amount of money the policyholder received.

3. The Florida OIR conducted an intense review of claims closed without payment after hurricanes and found no evidence of insurers refusing to pay valid claims.

• The OIR found that the top reasons for claims closed without payment are the claim damage was below the insurance policy's deductible, or that the claim was denied due to flood damage that is not covered by the property insurance policy.

4. A claim closed without payment does not mean insurers are wrongfully denying claims. There are a variety of reasons why a claim may be closed without payment.

• Most claims closed without payment are due to the cost of damage falling below the deductible or losses that are not covered under standard policies, most notably flooding. This underscores a broader issue: the significant gap in flood insurance coverage across the United States, leaving many homeowners financially vulnerable.
• If a homeowner is applying for disaster assistance through FEMA, the homeowner is required to have a denial letter from their homeowner insurer in order for FEMA to provide financial assistance. This requirement can artificially inflate the data and create an appearance of widespread denials by insurers, which is simply not the case.
• Some policyholders may pre-file claims while evacuated from a hurricane and return to find there is no damage.

5. Weiss Ratings is cited as a source in the article, but Weiss Ratings is not licensed, accredited or otherwise regulated as a recognized ratings agency.

• Weiss Ratings has a troubled history marked by suspensions, sanctions, fines, and investigations by the U.S. Securities and Exchange Commission over the alleged use of misleading and inaccurate statistics.

6. Florida policyholders have recourse through the Florida OIR if they feel their claim is not being handled fairly.

• Florida policyholders have several protections and dispute resolution options available to them, including pursing legal action.
• Claims handling practices are rigorously governed by state laws and regulations. Insurers operate under robust state oversight, with the Florida OIR enforcing strict market conduct standards.
• OIR conducts regular audits, investigate consumer complaints, and has the authority to require corrective action.

7. According to the Florida Office of Insurance Regulation, the average cost of homeowners insurance (including wind) in Florida is $3,757.

• Bloomberg cites Insurify's estimate of $8,292 for the average cost of homeowners insurance in Florida, but Insurify's estimate is based on quoted rates that were generated online using a base profile - not actual premiums being charged for policies.
• The Florida Office of Insurance Regulation is the most accurate and reliable source for the average cost of homeowners insurance in Florida.