The question of who pays the lawyer shapes every Florida property insurance dispute. Between December 2022 and March 2023, the Legislature removed the policyholder's statutory right to one-way attorney fees in property insurance suits and expanded the risk of fee-shifting the other way. Which rules apply to you can depend on when your policy was issued and when suit is filed.
The old rule: s. 627.428
Former s. 627.428 (and its surplus-lines counterpart, s. 626.9373) required a court to award reasonable attorney fees to an insured who obtained a judgment or decree against the insurer. The fee award ran only one way: an insurer that won did not recover its fees from the insured under that statute. For property owners, it meant a lawyer could take a modest claim knowing that fees might be paid by the insurer in addition to the policyholder's recovery.
How the rules changed, in order
| When | Law | Change |
|---|---|---|
| 2021 | Ch. 2021-77 (SB 76) | Created s. 627.70152: pre-suit notice, plus a subsection (8) formula tying fee awards to how the judgment compared with the presuit offer and demand. |
| December 2022 | Ch. 2022-271 (SB 2-A, special session) | Made the one-way fee provisions in ss. 627.428, 626.9373 and 627.70152 inapplicable to suits under residential or commercial property policies; repealed s. 627.70152(8); barred assignment of post-loss benefits for policies issued on or after January 1, 2023 (s. 627.7152(13)). |
| March 24, 2023 | Ch. 2023-15 (HB 837) | Repealed ss. 627.428 and 626.9373; created s. 86.121 (fees in some coverage declaratory actions) and s. 624.1552 (offer-of-judgment statute applies to any civil action involving an insurance contract). |
The declaratory-judgment fee rule excludes property policies
“This section does not apply to any action arising under a residential or commercial property insurance policy.”
Section 86.121(1) awards fees to an insured who wins a declaratory action after a total coverage denial — but subsection (2) carves out property insurance.
Which version applies to your claim
Courts generally treat a statutory right to attorney fees as substantive, and the policy is a contract, so the law in effect when the policy was issued often matters. HB 837's general application clause says the act applies to causes of action filed after March 24, 2023, except as otherwise provided. Courts have applied the older fee statute to policies issued before the December 2022 change; for example, a federal court in Florida applied the pre-amendment version of s. 627.428 to a policy issued in 2017.
The result is that two neighbors with the same storm damage can face different fee rules depending on their policy dates. If your policy was issued or renewed before December 16, 2022, ask a lawyer whether any fee rights survive for your claim. For policies issued after the reforms, plan on each side generally bearing its own fees.
Offers of judgment: fee risk for the policyholder
Section 624.1552 makes Florida's offer-of-judgment statute, s. 768.79, apply to any civil action involving an insurance contract. Under s. 768.79(1):
- If an insurer serves an offer of judgment that the policyholder does not accept within 30 days, and the policyholder then recovers nothing or a judgment at least 25 percent less than the offer, the insurer may recover its reasonable costs and attorney fees incurred after the offer. Those are set off against the judgment.
- The rule works both ways: if the policyholder serves a demand for judgment that the insurer does not accept, and the policyholder recovers at least 25 percent more than the demand, the policyholder may recover fees and costs incurred after the demand.
This makes settlement offers more consequential than they used to be. A lawyer weighs any offer against a realistic estimate of the outcome before you reject it.
How contingency representation works now
With one-way fees gone for most property suits, lawyers representing policyholders are commonly paid from the recovery itself under a contingency fee agreement. The key features:
- Written agreement. Florida Bar Rule 4-1.5 requires a contingency fee agreement to be in writing, signed by the client and the lawyer, and to state the method by which the fee is determined.
- No recovery, no fee. The lawyer's fee is a share of what is recovered. The Lawgical Firm, P.A. charges no upfront fees and is paid only if you recover.
- Costs are separate. Inspections, engineering or consultant reports, filing fees and appraisal costs are case costs. The agreement should say who advances them and how they are repaid.
- Net to you. Ask for an example showing how the fee and costs come out of a hypothetical recovery so you understand your net.
Assignment of benefits to contractors is also no longer available for policies issued on or after January 1, 2023 (s. 627.7152(13)), so the policyholder generally stays the party who pursues the claim.
What it means for a denied claim
The reforms changed the economics, not the underlying duties. Insurers must still meet the deadlines and explanation requirements of s. 627.70131, the pre-suit notice process still applies, and bad faith remedies under s. 624.155 still exist. What changed is that a policyholder must think more carefully about the cost of a dispute relative to the amount at stake, which is why mediation and appraisal often get a closer look. A free review can help you see whether the numbers justify a dispute.
Frequently asked questions
Does my insurer have to pay my lawyer if I win in Florida?
For most property insurance suits under current law, no. The one-way fee statute, s. 627.428, was made inapplicable to property suits in December 2022 and repealed in March 2023. Older policies may be treated differently.
What is HB 837?
HB 837, chapter 2023-15, Laws of Florida, was a 2023 civil-justice reform law. Among other things it repealed ss. 627.428 and 626.9373, created s. 86.121 and s. 624.1552, and amended the bad-faith statute, s. 624.155. It took effect March 24, 2023.
Can I get fees under s. 86.121 for a denied homeowners claim?
No. Section 86.121(2) states that the section does not apply to any action arising under a residential or commercial property insurance policy.
Could I end up paying the insurer's attorney fees?
Possibly, through an offer of judgment. If you reject an insurer's offer and recover at least 25 percent less than it (or nothing), s. 768.79 can allow the insurer to recover fees incurred after the offer.
How does The Lawgical Firm charge?
There are no upfront fees, and the firm is paid only if you recover, under a written fee agreement that also explains how case costs are handled.