Citizens Against Lawsuit Abuse has announced that Florida's tort reforms have eased the homeowners' insurance market and urged other states to adopt similar measures to reduce litigation costs for families and small businesses.
According to the Insurance Information Institute, Florida once accounted for nearly 79% of all U.S. homeowners’ insurance lawsuits while representing just 9% of total homeowners’ claims. This imbalance, detailed in a 2022 industry analysis, contributed to escalating defense costs and premium increases for Florida homeowners. The reforms passed in 2022 and 2023 specifically targeted this issue, curbing one-way attorney fees and assignment-of-benefits abuses that had heavily affected homeowners’ insurance.
The Florida Office of Insurance Regulation’s Property Insurance Stability Report from May 2024 indicates that insurers writing homeowners’ policies have reported lower defense and containment expenses since reform implementation. The agency documented that Florida’s homeowners’ segment, once responsible for 70.8% of national litigation, is now trending downward in both frequency and severity of lawsuits. The Office noted that as litigation rates declined, multiple carriers filed for rate decreases or zero-percent adjustments, marking early signs of stability for homeowners.
Florida Statute §629.011 defines "reciprocal insurance" as an interexchange of indemnity among "subscribers" managed by an attorney-in-fact, allowing policyholders to collectively insure one another. According to the Florida Office of Insurance Regulation, the state approved a new domestic property reciprocal insurer in 2023, signaling renewed confidence in Florida’s homeowners’ insurance market following reform. Regulators emphasized that reciprocal exchanges create shared accountability between policyholders and insurers, encouraging prudent claims handling and long-term market stability.
According to its official website, Citizens Against Lawsuit Abuse is a nonpartisan advocacy organization that educates the public about the impact of lawsuit abuse on consumers, small businesses, and local economies. The group supports reforms aimed at reducing litigation costs, particularly those affecting homeowners’ insurance affordability. It engages with policymakers, community leaders, and industry experts to promote fair legal standards and a balanced civil justice system.