Florida Property Damage Lawsuits: How Attorney’s Fees Really Work
When Florida homeowners experience property damage, whether from water leaks, hurricanes, mold, or fire, the insurance claim process can quickly become overwhelming. Many policyholders assume that if their insurer underpays or denies a valid claim, filing a lawsuit will automatically result in the insurance company paying their attorney’s fees. That assumption used to be mostly true. Today, it’s not.
Changes to Florida law have dramatically altered how attorney’s fees work in property damage litigation. Understanding those changes is critical before deciding how to move forward.
The Old Rule: “One-Way” Attorney’s Fees
For decades, Florida had what was known as a one-way attorney’s fee statute for property insurance cases. Under that system if a homeowner sued their insurance company and recovered any amount more than what was originally paid, the insurance company was required to pay the homeowner’s reasonable attorney’s fees.
This rule was designed to level the playing field between individual policyholders and large insurance carriers. It also allowed many homeowners to pursue legitimate claims without paying fees out of pocket.
Elimination of “One-Way” Attorney’s Fees
In 2022, Florida lawmakers eliminated one-way attorney’s fees for most residential and commercial property insurance lawsuits. As a result attorney’s fees are no longer automatically paid by the insurance company, even if the policyholder wins. Each side generally pays its own attorney unless a statute, contract provision, or settlement agreement provides otherwise. The risk of litigation costs now plays a much larger role in deciding whether a lawsuit makes financial sense.
This change applies to most property insurance claims arising from policies issued or renewed after the reform took effect.
So How Do Attorneys Get Paid Now?
Even without automatic fee recovery, property damage cases are still being litigated, but the structure has changed.
Most property damage attorneys now work under contingency fee agreements, meaning the attorney is paid a percentage of any recovery obtained. If there is no recovery, the client typically does not owe attorney’s fees or costs (this is dependent on the agreement with the attorney).
Because attorneys now assume greater financial risk, they must carefully evaluate: (1) the strength of the claim, (2) the amount in dispute, (3) the likelihood of recovery, and (4) whether the insurance company acted reasonably during the claims process.
Can Attorney’s Fees Still Be Recovered?
Yes, but only in limited circumstances, such as Settlement agreements where the insurer agrees to pay fees as part of resolution, Contractual provisions that independently allow fee recovery, Statutory mechanisms, such as Florida’s offer-of-judgment statute, in certain cases, and Bad faith actions, which are separate from the underlying coverage lawsuit.
Attorney’s fees are no longer a given, they are now a strategic consideration.
What This Means for Homeowners
The elimination of one-way attorney’s fees has shifted more responsibility onto policyholders to make informed decisions early. Before pursuing litigation, homeowners should understand, the potential costs and benefits of suing, whether pre-suit resolution or appraisal is a viable option, how much of any recovery may go toward attorney’s fees, and whether the claim amount justifies the risk.
That said, valid claims still deserve to be paid, and insurance companies remain legally obligated to honor their policies.
The Bottom Line
Florida property damage litigation has changed, but it hasn’t disappeared. Attorney’s fees are no longer automatic, which makes early legal advice more important than ever. An experienced Florida property damage attorney can help evaluate whether litigation makes financial sense and structure a fee arrangement that aligns with the client’s goals.
If your insurance claim has been denied, delayed, or underpaid, understanding how attorney’s fees work may be just as important as understanding your coverage.
