Legislative Overview: Florida’s Property Insurance Reform Bills Aim to Improve Transparency, Dispute Resolution, and Consumer Protections

Florida’s property insurance market has been at the center of ongoing debate, with homeowners facing rising premiums, coverage gaps, and lengthy claims disputes.

As the 2025 legislative session unfolds, three key bills—SB 0128 (Residential Property Insurers), SB 0224 (Resolution of Disputed Property Insurance Claims), and SB 0230 (Insurance)—are being closely watched for their potential to reshape the industry.

Together, these measures address transparency in policyholder communication, streamline dispute resolution, and strengthen regulations to protect consumers from unfair practices.

If passed, these bills could mark a significant shift in how property insurance is regulated in Florida.

SB 0128: Enhancing Transparency for Homeowners

Sponsored by Senator Burgess, SB 0128 seeks to ensure that policyholders are well-informed about their insurance policies.

The bill mandates that insurers provide notifications about policy changes through both mail and email, ensuring that homeowners are not left in the dark about critical updates that could affect their coverage.

Transparency has long been a concern in Florida’s insurance industry, as many homeowners discover too late that their coverage has changed or lapsed.

This bill would create a more consumer-friendly system by holding insurers accountable for clear, timely communication.

SB 0224: Making Mediation Mandatory Before Litigation

One of the biggest challenges in Florida’s property insurance system is the sheer volume of litigation between policyholders and insurers.

SB 0224, filed by Senator Polsky, takes a proactive approach to dispute resolution by making mediation a required first stepbefore any lawsuit can be filed.

Under current law, mediation is optional, but the bill would make it a condition precedent to litigation, ensuring that both parties attempt to resolve their disputes without immediately resorting to costly legal battles.

This approach could reduce court congestion, lower legal fees for homeowners, and lead to quicker claim settlements—a win for both consumers and the insurance industry.

Additionally, the bill strengthens mediation participation requirements, ensuring that policyholders (or their representatives) attend in person and provide necessary documentation.

SB 0230: Strengthening Insurance Regulations and Consumer Protections

Florida’s insurance market has also been plagued by bad faith claims, public adjuster misconduct, and unexpected policy cancellations.

SB 0230, sponsored by Senator Truenow, aims to address these issues by clarifying restrictions on extracontractual damages, prohibiting public adjusters from engaging in adversarial conduct, and establishing new rules on policy cancellations.

One critical provision in the bill requires insurers to explicitly state when a policy does not include flood insurance, a necessary step given Florida’s vulnerability to hurricanes and flooding.

Many homeowners assume they are covered for flood-related damage only to discover after a disaster that their policy excludes it.

By enforcing clearer disclosures, SB 0230 could prevent costly misunderstandings and financial hardships for homeowners.

The Bigger Picture: What These Bills Mean for Florida’s Property Insurance Market

Individually, each of these bills targets a specific aspect of Florida’s insurance crisis—whether it’s communication, dispute resolution, or regulatory oversight—but together, they represent a broader push to reform a struggling system.

If passed:

• SB 0128 would empower homeowners with better information.

• SB 0224 would ease the burden of litigation through mediation.

• SB 0230 would tighten consumer protections against bad faith practices.

  
  

However, the effectiveness of these bills will ultimately depend on implementation and enforcement.

While stronger notification requirements and mediation mandates sound promising, they will require proper oversight and compliance from insurers.

Furthermore, public adjusters and attorneys specializing in insurance disputes may push back against some of these measures, arguing that they could limit policyholders’ rights to seek full compensation for their claims.

Conclusion: Will the Legislature Deliver Real Change?

Florida lawmakers have an opportunity to take meaningful action on property insurance reform this session.

If these bills gain bipartisan support, they could provide homeowners with greater transparency, faster claim resolutions, and stronger consumer protections—all of which are desperately needed in a volatile market.

However, as with any legislation, stakeholders must remain engaged in the process to ensure that these reforms are not watered down or obstructed by industry opposition.

Homeowners, consumer advocates, and policymakers alike should be watching closely as these bills make their way through committee hearings.

If the Florida Legislature is serious about stabilizing the property insurance market, SB 0128, SB 0224, and SB 0230 must be more than just talking points—they must become law.