A Florida Insurance Litigation Attorney’s Perspective on the Latest Attack on Property Owners
If you’ve been paying attention to Florida’s legislative assault on homeowners’ insurance rights over the past several years, you already know the playbook. Strip away attorney fee protections. Make it more complicated to sue. Create procedural hoops that favor deep-pocketed insurance companies. And when homeowners dare to fight back against wrongful claim denials, the path to justice becomes so expensive and complicated that most can’t afford to pursue it.
Enter House Bill 459, the latest proposed legislation that would fundamentally reshape how property insurance disputes are resolved in Florida, not in favor of the homeowners who faithfully pay their premiums every year.
What HB 459 Actually Does
HB 459, filed for the 2026 legislative session by Representative Randy Maggard, establishes a mandatory administrative procedure through the Division of Administrative Hearings (DOAH) for resolving disputed property insurance claims. On its surface, proponents will tell you this streamlines the process and reduces costs.
Here’s what it actually does:
- Removes disputed insurance claims from the court system entirely and sends them to administrative law judges at DOAH
- Eliminates judicial oversight that has traditionally protected consumers in insurance disputes
- Creates a mandatory bureaucratic process that policyholders must navigate before getting any resolution
- Requires both parties to bear their own costs for conferences and proceedings
- Gives insurance companies another tool to delay, deny, and underpay legitimate claims
The bill requires insurers to notify policyholders of this mandatory procedure and authorizes either party to file a petition with DOAH to resolve claims. An administrative law judge would then make a “final determination” of coverage amounts within specified timeframes.
Sounds efficient, right? It’s anything but. Homeowners without attorneys will get their cases dismissed for technical deficiencies. Forgot to include the correct certification language? Dismissed. Failed to attach the proper documentation? Dismissed. Didn’t describe the insurer’s alleged missteps in the exact format required? Dismissed.
Insurance companies, meanwhile, will have teams of lawyers who know exactly how to draft compliant petitions. They’ll have templates, precedents, and years of experience navigating administrative procedures. The homeowner represents themselves because they can’t afford an attorney. They’ll be trying to figure out DOAH’s filing requirements while simultaneously dealing with a damaged home, arguing with adjusters, and trying to keep their family housed.
The Context: Florida Has Already Gutted Homeowners’ Protections
To understand why HB 459 is so problematic, you need to understand what Florida has already done to property insurance claimants over the past four years.
The Death of One-Way Attorney Fees
For decades, Florida Statute ยง 627.428 granted policyholders the right to recover reasonable attorney fees when they prevailed against their insurance company. This was essential because it leveled the playing field. Insurance companies have unlimited resources, in-house counsel, and defense firms on retainer. Homeowners have their savings and the hope that an attorney will take their case.
The one-way attorney-fee statute enabled attorneys to represent homeowners on a contingency basis. If the homeowner won even $1, their attorney fees were covered. This was the only reason many homeowners could afford to fight back against wrongful denials.
Then came the legislative dismantling:
- 2021 – Florida Statute ยง 627.70152: Created a tiered fee structure that made recovery uncertain. Attorneys could only get full fees if they beat the insurer’s pre-suit offer by 50% or more. Beat it by less than 20%? No fees at all, even if you won.
- December 2022 – Senate Bill 2A: Went nuclear. Added language to ยง 627.428 stating explicitly: “In a suit arising under a residential or commercial property insurance policy, there is no right to attorney fees under this section.“
- 2023 – HB 837: Completely repealed ยง 627.428 for property insurance cases.
The result? Thousands of Florida homeowners can no longer afford legal representation when their insurance company wrongfully denies their hurricane damage, roof claim, or water damage claim. Attorneys can’t afford to take these cases on contingency when there’s no mechanism for fee recovery.
Here Comes HB 459: Another Process That Favors Insurance Companies
With attorney fee recovery already gutted, HB 459 proposes to make matters even worse by forcing disputed claims through an administrative process at DOAH rather than allowing homeowners their day in court.
Why This is Terrible for Homeowners:
1. Administrative Law Judges Are Not Insurance Law Experts
DOAH handles everything from medical license disputes to environmental permit challenges to special education disagreements. Administrative law judges are generalists who may have little to no experience with the complexities of property insurance coverage disputes, bad-faith law, or the intricate policy language insurers use to deny claims.
In circuit court, judges see these cases regularly. They understand the games insurers play. They know the law. They can spot bad faith a mile away. At DOAH? You’re rolling the dice.
2. No Jury
Property insurance cases are highly fact-dependent. Did the hurricane cause the damage, or was it pre-existing? Is the roof damage from wind or from “wear and tear” (the insurer’s favorite excuse)? Should the entire property be considered a total loss?
Florida homeowners have a constitutional right to have a jury of their peers decide these factual disputes. Juries understand what it’s like to pay premiums for years only to be abandoned when disaster strikes. Juries don’t like it when billion-dollar insurance companies try to weasel out of their obligations.
HB 459 eliminates that right. One administrative law judge decides your case. No jury. No appeals to judges who specialize in insurance law. Just a final administrative order.
3. The Process Favors Delay
Here’s an insurance industry secret: delay is a weapon. When your roof is leaking, when your home has hurricane damage, when mold is spreading, you need repairs now. You need your claim paid so you can rebuild. Every day of delay means more damage, higher costs, and more desperation.
Insurance companies know this. That’s why they delay investigations. That’s why they send inadequate offers months later. That’s why they schedule unnecessary inspections and demand excessive documentation.
HB 459 adds another layer of bureaucratic delay. File your petition. Wait for the insurer’s response and schedule conferences. Attend administrative hearings. Meanwhile, your roof keeps leaking, and your savings account drains.
The insurance company? They’re fine. They have billions in reserves. They can wait for you.
4. No Attorney Fee Recovery = No Representation for Most Homeowners
Even if you could theoretically pursue your claim through DOAH, how will you pay for it? With attorney fees already eliminated for property insurance disputes, most attorneys can’t afford to take these cases on contingency. Hourly rates for experienced insurance litigation attorneys range from $350 to $600. Even a “simple” claim dispute could require 50-100 hours of work, which is $17,500 to $60,000 in legal fees.
How many Florida homeowners have that kind of money lying around to fight their insurance company? Especially when they’re already struggling to pay for repairs, the insurer should be covering from the years of paid premiums.
The answer: almost none.
HB 459 would create a system where insurance companies show up at DOAH with their army of lawyers and experts, while homeowners are forced to represent themselves because they can’t afford counsel. That’s not “streamlining” dispute resolution, that’s rigging the game.
5. Insurance Companies Get to Forum Shop
HB 459 says “either party” can file a petition with DOAH. That means insurance companies can preemptively file at DOAH the moment a dispute arises, forcing the homeowner out of court and into the administrative process.
This is a huge tactical advantage. If an insurance company knows a homeowner has a strong case, maybe there’s clear evidence of coverage, perhaps the denial was outrageous, they can file at DOAH first, locking the homeowner into a forum where:
- There’s no jury
- There’s no robust discovery process
- There are limited avenues for appeal
- The procedural protections of civil litigation don’t apply
Florida’s Insurance “Crisis” Was Manufactured
Let’s be clear about something: as we previously wrote, Florida’s insurance crisis wasn’t caused by homeowners filing legitimate claims or attorneys holding insurers accountable.
It was caused by:
- Insurance companies deliberately underprice policies to gain market share, then go insolvent
- Massive reinsurance cost increases that insurers passed directly to consumers
- Climate change is increasing the frequency and severity of storms
- Insurance companies pulling out of Florida because they’d rather not insure properties at risk, but pocketing premiums for years before abandoning their policyholders
Instead of addressing these root causes, the Florida legislature has spent years blaming homeowners and their attorneys, systematically dismantling every protection that allowed property owners to hold insurers accountable.
Real-World Scenarios: How HB 459 Would Devastate Florida Homeowners
Let’s look at actual case types we handle and see how HB 459 would affect real Florida families.
Scenario 1: Hurricane Damage Denial
The Situation: Maria’s Tampa home sustained significant damage during Hurricane Helene. Her roof has multiple areas of wind damage, she has water intrusion in three rooms, and her fence was destroyed. She filed a claim for $85,000 in damages. Her insurance company sent an adjuster who spent 20 minutes looking at the property, then denied the entire claim, stating the damage was due to “lack of maintenance” and “pre-existing wear and tear.” Maria knows this is wrong. She has maintenance records. The damage appeared immediately after the hurricane. She needs repairs now, as the water intrusion is causing mold growth.
Under Current Law: Maria could contact an attorney who might take her case on a contingency basis, knowing that if they prove even partial coverage, there are mechanisms for fee recovery. They could file suit in circuit court, where judges understand insurance bad faith. A jury of Maria’s neighbors would hear the evidence and likely award appropriate damages.
Under HB 459, Maria must file a petition with DOAH. She can’t afford the $25,000-50,000 it would cost to hire an attorney without fee recovery, so she’s on her own. She tries to draft the petition herself, but isn’t sure if she’s included all the required certifications. The insurance company files a motion to dismiss, arguing that her petition is deficient. By the time she figures out how to refile correctly, it’s been four months. The mold has spread. The water damage is worse. She’s exhausted and considers just accepting whatever the insurer offers to make it stop.
The insurance company wins not because they were right, but because the system is designed to wear Maria down.
Scenario 2: Total Loss Dispute
The Situation: Robert’s commercial property in Fort Myers sustained severe damage when a pipe burst, flooding the entire building. His contractor estimates repairs at $450,000. The property’s insured value is $600,000. Robert’s engineer believes the property should be declared a total loss due to structural compromise and mold remediation costs that would exceed repair costs. The insurance company disagrees. They offer $180,000 for “partial repairs” and refuse to discuss total loss.
Under Current Law: Robert’s attorney could file suit, retain expert engineers and contractors, conduct discovery to examine the insurer’s inspection reports and internal communications, and present the case to a judge who regularly handles these disputes. The threat of bad-faith damages and attorneys’ fees gives Robert leverage to negotiate.
Under HB 459, Robert files a petition with DOAH. The administrative law judge has no construction background and a limited ability to evaluate competing engineering opinions. There’s no jury to understand the financial devastation of an undervalued commercial property claim. The insurer’s team of lawyers runs circles around Robert’s solo practitioner attorney (who’s working for a deeply discounted rate because there’s no fee recovery). The ALJ splits the difference and awards $280,000, still not enough to make Robert “whole”, but more than the insurer’s offer, so the system declares it a “success.”
Robert loses his business because the resolution was inadequate, but the statistics show DOAH “resolved” the dispute.
Scenario 3: Sinkhole Claim Denial
The Situation: Patricia’s home in Hernando County shows classic signs of sinkhole activity, including cracked walls, sticking doors, and tilting floors. She files a claim. Her insurance company sends an engineer who does a minimal investigation and concludes “settlement, not sinkhole.” Claim denied. Patricia hires her own engineer, who conducts ground-penetrating radar and soil testing, confirming sinkhole activity. The insurance company refuses to reconsider.
Under Current Law: Patricia’s attorney files suit, conducts extensive discovery including depositions of both engineers, and presents the case to a jury. Sinkhole cases are complex, but judges and juries in Florida understand these issues. Patricia’s attorney invested hundreds of hours because fee recovery made it economically viable.
Under HB 459, Patricia can’t find an attorney willing to take the case without a $50,000 retainer. Sinkholeย cases are too complex and expensive without fee recovery. She represents herself at DOAH. The insurance company’s engineers are professional witnesses who testify regularly. Patricia’s engineer is excellent but not a trained witness. The ALJ, with no geology background, finds the insurance company’s engineer more credible because they “presented better.”
Patricia loses her home, which is literally sinking, because she couldn’t navigate a complex administrative proceeding without proper legal representation.
What HB 459 Really Accomplishes
Strip away the rhetoric about “efficiency” and “streamlining,” and here’s what HB 459 actually does:
- Makes it nearly impossible for homeowners to afford legal representation in insurance disputes
- Eliminates jury trials for property insurance claims
- Removes cases from experienced insurance law judges to generalist administrative law judges
- Gives insurance companies another procedural weapon to delay paying valid claims
- Increases the power imbalance between billion-dollar insurers and individual property owners
- Reduces the leverage homeowners have to negotiate fair settlements
In short, HB 459 protects insurance company profits at the expense of Florida homeowners.
What Florida Property and Homeowners Need to Know
If HB 459 passes, here’s what you need to understand:
- Your ability to challenge claim denials will be severely limited. The administrative process is less favorable to consumers than civil litigation.
- Finding an attorney to take your case will be even harder. Without fee recovery, most attorneys can’t afford to help you.
- Insurance companies will become even more aggressive in denying or underpaying claims, knowing homeowners have fewer options to fight back.
- You may be forced to represent yourself against teams of insurance company lawyers in administrative proceedings you don’t understand.
The Data Insurance Companies Don’t Want You to See
Here are some inconvenient facts about Florida’s insurance market:
Claim Denial Rates
Before the 2021-2023 legislative changes, Florida property insurers paid approximately 92% of hurricane claims. Since the elimination of attorney fee protections, denial rates have increased, but insurers won’t release exact data. Why? Because it would prove these “reforms” didn’t reduce fraud, they just reduced accountability.
Executive Compensation
While Florida insurance companies claim they’re struggling financially, executive compensation at major insurers operating in Florida averages $5-15 million annually. Universal Insurance Holdings’ CEO made over $6 million in 2023. Heritage Insurance Holdings’ executives collectively made over $10 million. Funny how there’s always money for executive bonuses but never for paying homeowners’ valid claims.
Litigation Costs
Insurance industry lobbyists claim that litigation costs are driving up premiums. But here’s what they don’t tell you: litigation costs represent less than 5% of total claims expenses for most insurers.
The fundamental cost drivers are:
- Reinsurance (30-40% of premium dollars)
- Catastrophic losses from increasing storm severity (climate change)
- Underpricing policies to gain market share, then going insolvent
Premium Increases: Florida homeowners have seen average premium increases of 40-60% over the past three years. But claim payouts haven’t increased proportionally; premiums are rising, while claim payments are declining. The difference? Pure profit for insurers and their reinsurers.
Our Position at Williams Law Association, P.A.
As Florida insurance litigation attorneys who have spent decades fighting for homeowners, we’re watching HB 459 with alarm. This bill represents yet another erosion of the rights Florida property owners have relied on for generations.
We’ve seen firsthand what happens when insurance companies face no real accountability. We’ve represented hundreds of homeowners who were denied coverage they’d paid for, had their hurricane claims lowballed, or were forced to live in damaged homes while their insurer played games.
Florida homeowners deserve better. They deserve a justice system that holds billion-dollar corporations accountable. They deserve access to experienced attorneys who can fight on their behalf.
HB 459 Moves Florida in the Opposite Direction.
If you’re concerned about this legislation, contact your state representatives. Tell them Florida homeowners need protection, not more barriers to justice.
Contact Your State Representatives Today
- Find your Florida House Representative: www.myfloridahouse.gov
- Find your Florida Senator: www.flsenate.gov
Tell them: Vote NO on HB 459.
If your insurance company has denied, delayed, or underpaid your property insurance claim, don’t wait for the law to change again. Contact Williams Law Association, P.A. today at 1-800 451-6786. We’re based in Tampa but serve homeowners and businesses throughout Florida. Free consultations. No recovery, no fee. We’re not intimidated by insurance companies, and we won’t stop fighting for your rights.