House Bill 7065 makes changes to the state’s one-way attorney fees provision when dealing with lawsuits between contractors and property insurance companies.
It now makes a claimant responsible for attorney’s fees if the settlements are less than 25% more of the initial ask. CEO of Citizens Property Insurance Barry Gilway sees this as a deterrent.
"In my opinion it would absolutely cause claimants, particularly those contemplating putting in fraudulent or exaggerated claims to think twice before they brought suit. Because now they’re at risk.", said Gilway.
Gilway believes this will help drive down the amount of exaggerated claims in the property insurance market, ultimately lowering rates for homeowner’s insurance overtime.
Senate Bill 122 is scheduled for its last committee meeting Wednesday.
