By David J. Pettinato, Insurance Attorney at Older Lundy Koch & Martino
For decades, Florida’s one-way attorney fee statute served as a vital protection for policyholders. It meant that if an insured had to sue their insurance carrier and won, the insurance company was required to pay their attorney’s fees. This leveled the playing field, empowered homeowners to seek justice, and gave public adjusters a reliable partner in the claims process.
But with the passage of the legislation at the end of 2022, that safeguard is gone. And we are now seeing the unfortunate effects of that legislation have serious negative consequences for policyholders.
❌ What Changed?
In late 2022 and again in 2023, sweeping insurance reform bills (including SB 2A and HB 837) effectively eliminated the policyholder’s ability to seek one-way attorney fees for property insurance claims in Florida. Now, policyholders must pay their own legal fees, even when they prevail. Now there is no incentive for insurance companies to timely pay owed insurance benefits.
🛠 How This Impacts Public Adjusters
Public adjusters are already seeing the fallout. Homeowners with valid claims are increasingly reluctant to pursue litigation because the financial risk now falls on them. That means fewer claims are being properly challenged, undervalued payouts are going uncontested, and adjusters are left without resolution on severely underpaid files.
This also puts more pressure on public adjusters during the early stages of the claim. Since litigation is now costlier and more complex, the front-end estimate, documentation, and policy interpretation must be airtight. Carriers are taking advantage of the shifting legal climate, knowing fewer insureds have the ability to push back.
🧩 So, What Can You Do?
Public adjusters are on the front lines of policyholder advocacy—and your role just became even more critical. Here’s how to adapt:
- Be selective: Vet your cases carefully. Consider the legal risk your clients may face if litigation becomes necessary.
- Document everything: Clear, detailed estimates and photo evidence are more important than ever. Assume every file could end up in court.
- Educate clients: Make sure policyholders understand the cost implications before assuming their carrier will “do the right thing.”
- Partner early: Work closely with attorneys who understand the new laws and can guide strategy early on. A proactive approach can prevent costly mistakes later.
💬 Final Thoughts
The erosion of one-way attorney fees was a gift to the insurance industry, but it does not have to be a death sentence for policyholders. With the right team, the right documentation, and a shared strategy between public adjusters and attorneys, we can still hold insurance carriers’ accountable.
If you have questions about how these changes may affect your work or your clients, my door is always open.
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Dave Pettinato is an attorney at Older Lundy Koch & Martino and has spent over 25 years representing policyholders in property insurance claims across Florida. He regularly works alongside public adjusters and contractors to help homeowners recover what they’re owed after a loss.
