More Florida Homeowners Suing Over Denied Insurance Claims, Report Finds

Following tort reform, insurers are denying more claims, and more homeowners are taking legal action, Weiss Ratings says.

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Florida’s efforts to reduce the number of lawsuits over denied home insurance claims appear to be backfiring, according to a recent report by a Florida-based independent ratings firm.

Insurance companies denied nearly 47% of home insurance claims following two hurricanes in 2024, according to Weiss Ratings’ report. And 13% of those with denied claims sued their insurers over the denials, Weiss reported.

In 2022, Florida’s legislature passed multiple laws aimed at reining in the state’s runaway home insurance costs. The legislation changed how insurance litigation works in the state and limited who can receive compensation for attorney’s fees associated with claim disputes.

Tort reform hasn’t slowed the rate of lawsuits stemming from denied claims, Weiss said. But it has increased the percentage of claim denials — by nearly 17%.

“[I]nsurance companies are denying home damage claims more aggressively, and their policyholders are fighting back by suing at a higher rate,” according to Weiss’ report.

More denied claims, more lawsuits after tort reform

Weiss’ report analyzed insurer filings and National Association of Insurance Commissioners (NAIC) data, comparing 2024 to 2022. The rating company omitted 2023 data because tort reform had just taken effect, skewing data for the year.

In 2024, following hurricanes Helene and Milton, Florida homeowners filed nearly 458,000 claims.

On average, Florida insurers closed 46.7% of home insurance claims without payment, a 17% increase from 2022, Weiss reported. Lawsuits over denied claims rose by 4% in 2024.

“In 2022, before tort reform, for every thousand claims, their policyholders filed 124 lawsuits against [insurers],” the report stated. “In 2024, after tort reform, that number actually rose to 129 per thousand.”

In an earlier report, Weiss found that 14 of the nation’s largest property insurance companies closed 40%–51% of homeowner claims without payment in 2024.

What’s next: Florida homeowners insurance costs likely to rise

Florida has the highest average cost for homeowners insurance in the country — $14,140 per year at the end of 2024, according to an Insurify report.

Frequent hurricanes and damaging storms mean higher risks for insurance companies and higher premiums for homeowners. Since 2020, climate disasters have cost Florida approximately $237 billion, according to the National Centers for Environmental Information (NCEI).

Insurify’s data scientists predict Florida’s average cost of home insurance will increase 9% in 2025, landing at $15,460 annually.

Evelyn Pimplaskar
Evelyn PimplaskarEditor-in-Chief, Director of Content

Evelyn Pimplaskar is Insurify’s director of content. With 30-plus years in content creation – including 10 years specializing in personal finance – Evelyn’s done everything from covering volatile local elections as a beat reporter to building fintech content libraries from the ground up.

Before joining Insurify, she was editor-in-chief at Credible, where she launched and developed the lending marketplace’s media partnership’s content initiative and managed the restructuring of the editorial team to enhance content production efficiency. Formerly, as tax editor for Credit Karma, Evelyn built a library of more than 300 educational articles on federal and state taxes, achieving triple-digit year-over-year growth in e-files from organic search.

Her early career included work as a content marketer, vice president and managing officer of a boutique public relations agency, chief copy editor for 14 weekly Forbes publications, reporting for large and mid-sized daily newspapers, and freelancing for the Associated Press.

Evelyn is passionate about creating personal finance content that distills complex topics into relatable, easy-to-understand stories. She believes great content helps empower readers with the information they need to make important personal finance decisions.

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