Florida’s insurance landscape has undergone a seismic shift over the past two years, and policyholders who are not keeping up with these changes are finding themselves at a serious disadvantage when claims are denied or underpaid. Between HB 837’s sweeping tort reform provisions and more recent legislation like SB 7052, the rules governing how insurers handle claims and how bad faith actions are pursued have fundamentally changed. If you hold a homeowner’s policy, an auto policy, or a commercial policy in the State of Florida, you need to understand what these changes mean for your rights.
The 90-Day Safe Harbor: A New Shield for Insurers
One of the most consequential changes introduced by recent legislative amendments is the addition of Section 624.155(4)(a) to the Florida Statutes. This provision creates what practitioners are calling the “90-day safe harbor” for liability insurers. Under this framework, a bad faith action cannot be sustained if the insurer tenders the lesser of the policy limits or the amount demanded by the claimant within 90 days of receiving actual notice of the claim, provided that notice is accompanied by sufficient evidence to support the claimed amount.
What this means in practical terms is significant. Insurers now have a clearly defined window to evaluate, process, and tender payment on a claim before bad faith exposure attaches. If payment is made within that 90-day window, no statutory or common law bad faith cause of action can arise from that particular claim. For policyholders and claimants, this means the documentation you submit with your initial claim is more important than ever. Vague or incomplete submissions may not trigger the 90-day clock, giving the insurer additional time and leverage.
How HB 837 Changed the Playing Field
The broader tort reform legislation under HB 837 made several additional changes that directly affect insurance bad faith litigation. Among the most impactful: the law clarified that negligence alone is not sufficient to establish bad faith on the part of an insurer. Prior to this change, a policyholder could argue that an insurer’s mere failure to properly investigate or evaluate a claim constituted bad faith. Now, the standard requires something more, and courts are actively interpreting what that “something more” looks like in practice.
Additionally, HB 837 introduced the modified comparative negligence standard, which bars recovery for plaintiffs found to be more than 50 percent at fault. While this change primarily affects personal injury claims, it has a ripple effect on insurance bad faith litigation because it alters the underlying value of claims and, by extension, the insurer’s obligations in evaluating those claims.
SB 7052 and the Latest Round of Reforms
Effective July 1, 2025, SB 7052 introduced additional revisions to the bad faith standards that govern how insurers must handle claims. The legislation established new protocols for emergency repairs on insured properties and revised the standards by which insurers’ conduct is measured in bad faith proceedings. Following that, HB 4326, effective January 1, 2026, established new mediation protocols for disputed claims, adding another procedural layer that both insurers and policyholders must navigate before litigation can proceed.
These changes are layered on top of one another, creating a complex procedural and substantive framework that requires careful navigation. An insurer’s failure to comply with any of these statutory requirements can still give rise to a bad faith action, but the burden on the policyholder to document and prove that failure has increased substantially.
What Policyholders Should Do Now
If you are dealing with an insurance claim in Florida, particularly a property damage claim, there are several steps you should take to protect your rights under the current legal framework. First, document everything from the moment damage occurs. Photographs, videos, receipts, and written communications with your insurer all become critical evidence if a dispute arises. Second, when you submit your claim, make sure it includes “sufficient evidence to support the amount of the claim,” because under the new safe harbor provision, the quality of your initial submission determines when the insurer’s 90-day clock begins to run.
Third, and most importantly, do not assume that the rules you understood two or three years ago still apply. Florida’s insurance litigation landscape has changed more in the past 24 months than in the preceding two decades. Whether you are a homeowner dealing with a denied hurricane damage claim, a business owner disputing a commercial property loss, or an individual pursuing an auto insurance claim, the procedural requirements and substantive standards are different now. Consulting with an attorney who is current on these changes is not optional; it is essential.
At Your Legal Advocate, we stay on top of every legislative and judicial development affecting Florida insurance law. If your claim has been denied, delayed, or underpaid, we can evaluate your situation under the current framework and advise you on the most effective path forward.