A Drastic Shift in Florida Law: What It Means for Home Insurance Claims

Florida’s legal environment for personal injury and car accidents was fundamentally changed in 2023 with the passage of House Bill 837 (HB 837). This legislation is a significant national story because it has completely transformed accident victim rights across the entire state. Legal experts widely classify the bill, signed by Governor Ron DeSantis, as a “tort reform” that provides major advantages to insurance companies and corporate defendants over individual plaintiffs.

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The Three Pillars of HB 837: A Drastic Shift in Legal Strategy

HB 837 introduced three key changes that have had a profound effect on everyone involved in a car accident in Florida. These new rules, which apply to all negligence-based cases occurring after March 24, 2023, have created a more challenging path for plaintiffs to pursue legal action.

• 1. A Shorter Statute of Limitations Before HB 837, Florida had a four-year statute of limitations for personal injury claims. This four-year window gave accident victims the necessary time to get medical care, document their injuries, and negotiate with insurance companies before deciding to file a lawsuit. The new law has cut this deadline in half, to just two years. This significant alteration has put a critical time constraint on every personal injury case.
  • The Impact: This shorter deadline puts immense pressure on plaintiffs. They have less time to:
    • Obtain and review medical records.
    • Gather crucial evidence, like police reports and witness statements.
    • Thoroughly investigate the at-fault party.
    • Negotiate settlement offers with insurance companies.

This rushed timeline often forces plaintiffs to make crucial decisions about their case before they have a complete understanding of their long-term health consequences.

• 2. The Modified Comparative Negligence Rule This change is arguably the most impactful part of HB 837. Before the bill became law, Florida used a “pure comparative negligence” system. Under that system, an injured person could still collect compensation even if they were mostly at fault for the accident. For example, a plaintiff found to be 90% at fault for a crash could still recover 10% of their total damages.

The new law has adopted a “modified comparative negligence” rule. Under this rule, a plaintiff who is found to be more than 50% responsible for an accident is ineligible to receive any compensation. This means that a finding of 51% fault—even for a minor mistake—results in a complete denial of compensation, regardless of the severity of the injuries.

• • The Impact: Insurance companies now have a powerful tool to avoid paying a settlement by aggressively arguing that the plaintiff was more than 50% at fault. Defense teams can use any minor traffic infraction, such as speeding or failing to signal, to push the plaintiff’s fault percentage over the 50% threshold. This modification makes it much harder for accident victims to obtain a favorable settlement and increases the likelihood that cases will proceed to trial.

3. Restrictions on “Bad Faith” Claims Before HB 837, if an insurance company unfairly denied or delayed a valid claim, a plaintiff could sue them for “bad faith” and seek significant additional damages beyond the policy limits. This was a powerful incentive for insurance companies to process claims efficiently.

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The new legislation makes it significantly more challenging for a plaintiff to file a successful bad faith lawsuit. It provides insurance companies with a “safe harbor” provision, giving them more time and legal protection when responding to claims. These new rules reduce the pressure on insurers to make timely and fair payments, which can lead to longer delays and lower settlement offers.

• • The Impact: This is a major victory for insurance companies, as it reduces their financial and legal risk. For plaintiffs, it means they have less leverage to compel a difficult insurance company to negotiate in good faith.

The Critical Importance of Estate Planning After an Accident

The new legal framework created by HB 837 also highlights the critical need for accident victims to consider the impact on their financial and estate plans. A serious car accident can lead to unexpected incapacity or even death, which can have devastating consequences for a family if proper legal and financial protections are not in place.

• Immediate Incapacity: A severe car accident can leave a person unable to make their own medical and financial decisions. Without a proper power of attorney and a health care surrogate designation, the victim’s family may have to go to court to get legal permission to manage their affairs. This can be an expensive, time-consuming, and emotionally draining process.
  • Power of Attorney: This legal document allows you to appoint a trusted individual to handle your financial duties if you become incapacitated.
  • Health Care Surrogate: This document enables you to name someone who will make medical choices on your behalf, ensuring your wishes are honored if you cannot communicate them.
• Wrongful Death and Asset Protection: In the tragic event that a car accident leads to a wrongful death, a well-structured estate plan is essential. Without a will or trust, the state of Florida will decide how to distribute your assets through a process called intestacy. This could result in your assets going to people you may not have intended and can leave your family without the financial resources they need to cover final expenses and living costs.
• Protecting Your Family from Liability: If you are found to be at fault for an accident and the damages exceed your insurance policy limits, a judgment could be entered against your personal assets. A well-designed estate plan becomes vital for protecting assets in such situations.
  • Homestead Exemption: Florida has one of the strongest homestead exemptions in the nation, which can protect your primary residence from creditors in a car accident lawsuit.
  • Trusts: Certain types of trusts, when properly established, can shield assets from creditors and ensure they are passed on to your loved ones without being vulnerable to a lawsuit.

The new legal landscape in Florida—with its shorter deadlines and stricter comparative negligence rules—adds an urgent layer to both personal injury claims and estate planning. It forces individuals to be proactive in protecting themselves and their families from both the immediate physical and financial impacts of an accident, as well as the long-term legal ramifications.

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