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Have you ever wondered what happens when
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the rules of the game change halfway
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through? That's exactly what Florida
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homeowners and insurance companies are
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facing with attorney fees in insurance
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disputes. The decision in a nutshell. It
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all started with a case. A homeowner,
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Denise Bloomberg, sued security First
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Insurance over storm damage to her home.
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The dispute wasn't really about the
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damage, though. It was about attorney
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fees. She had the right to recover her
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legal fees based on the laws in place
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when she bought her policy. Her insurer
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disagreed, claiming new laws eliminating
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those fees should apply instead. The
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court ultimately sided with Bloomberg.
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Why? Because the law at the time of
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policy issuance sets the rules.
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This decision does more than settle one
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case. It fundamentally changes how
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insurance claims are handled throughout
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Florida. How did we get here? Before
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2022, Florida's one-way attorney fee
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rule meant insurers had to pay policy
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holders legal fees if they lost in
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court, even if the payout difference was
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small. Late 2022, Florida legislature
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passed Senate Bill 2A, which gutted the
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one-way fee rule. Insurers no longer had
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to cover attorney fees in property
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damage disputes. This created confusion.
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Would it apply to older policies or just
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new ones? August 2025, the Florida
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Appeals Court ruled that fee rights stay
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tied to the original contract terms. For
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homeowners with policies before the 2022
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changes, this means they could still
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recoup legal fees. Insurers aren't
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thrilled. They argue the ruling makes it
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harder to control unnecessary lawsuits
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and call it a step backward, saying
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Florida's legal climate invites runaway
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litigation. Without fee coverage, most
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policyh holders would avoid costly
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lawsuits. Now, those holding pre2022
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policies have an incentive to fight back
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when they think they're underpaid. How
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does Florida compare? Other states have
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different approaches. Texas has no
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one-way fee rule. California caps legal
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fees based on settlement amounts. New
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York rarely makes legal fees a big issue
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unless bad faith claims are involved.
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Florida's history of high litigation
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rates makes it unique. Will this ruling
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amplify the trend? Or will insurers
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double down to avoid lengthy disputes?
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Insurers say attorney fee rules created
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a vicious cycle. More lawsuits lead to
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more costs, which lead to skyrocketing
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premiums. Some companies argue this
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decision drags the market back into
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chaos. But for homeowners and
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businesses, it's a relief. Fighting an
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underpaid claim is hard enough. Add
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legal fees and many could have been
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priced out of justice.
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Now those with older policies keep their
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safety net. Will it lower rates? Even
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with reforms like Senate Bill 2A,
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insurance premiums haven't exactly
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dropped. Florida remains one of the most
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expensive states for property insurance.
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With hurricanes, inflation, and
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reinsurance costs, all contributing
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factors. What's next? More lawsuits.
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This ruling sets the stage for new
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debates over what laws apply and when.
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Homeowners with pre2022 policies may
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feel empowered to push back on claims.
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It's a pivotal moment for Florida that
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could ultimately reshape how homeowners
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and businesses approach the complex
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world of insurance claims. The question
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remains, who's ready for the next storm?
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Let's recap what we've learned. The
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Florida Appeals Court ruled that
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attorney fee rights are tied to the
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original policy terms. This means
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homeowners with pre2022 policies can
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still recover legal fees in disputes.
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Insurers aren't happy, arguing this
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ruling could lead to more litigation and
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higher costs. They believe it undermines
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recent reforms aimed at stabilizing
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Florida's volatile insurance market. The
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decision creates a two-tier system. One
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set of rules for policies issued before
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the 2022 law change and another for
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newer policies. This legal patchwork
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adds complexity to an already
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challenging market. Despite legislative
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efforts to reduce costs, Florida remains
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one of the most expensive states for
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property insurance. And with hurricane
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season always on the horizon, the stakes
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couldn't be higher for homeowners and
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insurers alike. Thank you for watching
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our coverage of Florida's insurance
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attorney fee dispute. We hope this
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information helps you understand how
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these legal changes might affect your
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insurance claims. Stay informed and
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prepared for whatever storms may come
