Florida House Bill 1551 Withdrawn: What Florida Attorneys Should Know About Disputed Claims
Let’s talk about a recent proposal in the Florida Legislature: House Bill 1551 (HB 1551). This bill was all about how insurance policies and legal fights over denied claims are handled. Although it was withdrawn from Senate consideration on May 3, 2025, it’s still something attorneys and policyholders should keep an eye on.
What Was HB 1551 About?
Imagine you have homeowners' insurance. If a storm damages your roof, you expect help from your insurance company. But sometimes they deny the claim. That’s when things get tricky, and people may need to take legal action.
HB 1551 proposed that when two parties - you and the insurance company, go to court over a denied claim, the loser would have to pay the winner’s attorney fees. This is called a "two-way attorney fee" rule. It would apply across different coverage types, like home, auto, or business insurance.
Why Was This Important?
Before, Florida had a rule where if you won against an insurance company, they had to pay your lawyer fees. This helped people who couldn't afford lawyers to still fight for their rights. But that rule was taken away in 2022 and 2023, making it harder for regular folks to challenge insurance companies.
HB 1551 tried to bring back some fairness by making both sides responsible for lawyer fees, depending on who wins. This way, insurance companies might think twice before denying claims unfairly, and people would be careful about going to court without a strong case.
Why Was HB 1551 Withdrawn?
Even though HB 1551 aimed to restore fairness in insurance disputes, critics argued it could lead to more lawsuits. Insurance companies were concerned it would raise costs and make insurance policies more expensive for everyone. Due to these worries, lawmakers withdrew the bill from consideration in the Florida Senate, so it didn’t become law.
What Should Florida Attorneys Know?
- Stay Informed: Laws involving insurance policies and legal disputes can shift quickly. Stay up to date to best serve your clients.
- Educate Your Clients: Help them understand their options when disputing denied claims, including the costs tied to attorney fees.
- Monitor the Senate: Just because HB 1551 didn’t pass doesn’t mean similar coverage-type legislation won’t pop up again.
- Prepare for Future Bills: Future proposals may reshape how Florida handles insurance claim litigation between parties.
Need Help with a Denied Insurance Claim?
At Vargas, Gonzalez, Delombard, LLP, we fight for homeowners, businesses, and property owners across Florida. If your insurance claim was wrongfully denied, delayed, or underpaid, you don’t have to face it alone. Our experienced attorneys understand the changing landscape of Florida insurance laws and are here to protect your rights. Contact us today, we offer free consultations.
