Consumer Protection and Insurance Experts Say “Tort Reform” Has Harmed Homeowners & Driven Up Costs, While Protecting Insurance Company Profits

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September 12, 2025

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Consumer Protection and Insurance Experts Say “Tort Reform” Has Harmed Homeowners & Driven Up Costs, While Protecting Insurance Company Profits

Experts Debunk Tort Reform Myths Amid National Home Insurance Crisis

To watch a recording of the panel, click here.

Earlier today, consumer protection and property insurance experts discussed the ramifications of so-called tort reform for homeowners. In states like Florida, Texas, Georgia and elsewhere, tort reform has been touted as a quick fix for stabilizing the home insurance market. But as recent evidence shows, it may be helping insurers while leaving homeowners worse off.

According to a recent Washington Post article, despite promises to reduce lawsuits and lower premiums, Florida’s 2023 tort reform laws have not decreased litigation. In fact, denied claims rose to nearly 50% in 2024, while insurers posted profits and consumers lost critical legal protections. Simultaneously, insurance companies have passed the costs and risks of growing climate-driven extreme weather onto homeowners and other policyholders.

The experts unpacked findings from Weiss Ratings showing that so-called “tort reform” has not only failed to stabilize the market, but has exacerbated premium spikes and left consumers more vulnerable to company misconduct. 

“In 2024, a year marked by three major storms, insurers denied or closed without payment nearly 47% of all claims.... This isn’t frivolous litigation—it’s families being forced to fight back after insurers refused to pay,” said Dr. Martin Weiss, the founder of Weiss Ratings, a Florida-based ratings agency.  “The data proves tort reform hasn’t fixed the problem—it’s made it worse. Families are paying more, getting less, and still being forced into court just to secure what they’re owed.”

The data shows nearly 50% of homeowner insurance claims in Florida were denied in 2024, a sharp increase that coincides with tort reform implementation. Meanwhile, the promised premium relief has not materialized.

“This isn’t an abstract debate—Floridians are paying the price,” said Joanne Doroshow, the Executive Director at Center for Justice & Democracy at New York Law School. “Tort reform stripped away protections, gave insurers more power to deny claims, and left families with fewer options to fight back,” 

In the call, the experts broke down the consequences of tort reform and what’s really driving the crisis: not lawsuits, but rising climate risks, lax regulation, and insurers not being prepared for the economic implications of exacerbating climate disasters. 

“Tort reform only protects corporate profits, not families. It’s a distraction from the real crisis—climate change, rising disaster costs, and insurers refusing to pay fairly,” said Doug Heller, the Director of Insurance at Consumer Federation of America. 

The experts called for a change in focus, from shielding insurers to shifting the burden of cost away from people, and offered a range of policy solutions to protect homeowners and restore balance in the market.

“Real solutions mean building resilient communities, where insurance is reliable, fair, and centered on protecting families, not profits,” said Moira Birss, a Fellow at Climate & Community Institute.

“Tort reform doesn’t protect people. It protects corporate profits. And it’s happening at the worst possible time,” said TJ Helmstetter, a spokesperson for the Insurance Fairness Project. “As climate-fueled disasters drive up insurance rates and force families out of coverage, politicians are letting insurance companies off the hook instead of standing up for the people they serve. In a moment when millions of Americans are struggling to afford or even access insurance, this is exactly the wrong direction. ”

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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.