Property Insurance Changes

PropertyInsuranceChanges.

2023 Legislative Session

Senate Bill 154 – Condominium and Cooperative Associations

The legislation, the date Governor DeSantis approved the legislation, came into effect on June 9, 2023, unless expressly mentioned in the legislation. The statute delineates precise dates for the completion of inspections. Effective Date:

Senate Bill 154 introduces the following modifications:

Citizens policy types do not require condominium unit owners to have flood insurance and do not offer coverage for wind damage.

Modifies the experts who are capable of performing the condominium milestone inspection and structural integrity reserve study.

Modifies the content that needs to be included in the inspection and the responsible party for organizing it.

Specifies the timing for conducting the condominium milestone inspection and the notification obligations.

Enables the regional law enforcement authority to make particular judgments concerning inspections.

Specifies the prerequisites for reserve funds.

The inspection requirements do not apply to the following types of buildings: buildings that are less than three stories in height; single-family, two-family, or three-family dwellings with three habitable stories or less; any part or element of a building that is not owned by the association; or any part or element of a building that is maintained by a different party.

Specifies the notification obligations concerning inspections/reports when selling the property.

Senate Bill 1002 – Motor Vehicle Glass

Senate Bill 1002 introduces the following modifications pertaining to automotive glass (windshield):.

It is against the law for a motor vehicle repair shop or employee to offer a rebate, present, gift card, cash, coupon, or any valuable item in exchange for making an insurance claim for vehicle glass replacement or repair, which may include calibration or recalibration. Additionally, individuals who are not employees but receive compensation for soliciting insurance claims are also prohibited from making such offers.

Neglecting to provide electronic or written notification if calibration or recalibration of the windshield is necessary.

The advantages of vehicle insurance cannot be transferred to a third party, like an automobile repair shop, for policies that are issued or renewed on or after July 1, 2023.

Consumers who require windshield glass products, calibration services, or windshield repair or replacement specific to a location or company cannot rely on an insurance representative, adjuster, agent, or company.

A representative, adjuster, insurance agent, or insurance company may provide an explanation of any applicable limit of liability and comprehensive coverage benefits to a consumer of motor vehicle insurance.

If a representative or insurance company offers a discount, they must provide the consumer with a sound actuarially discounted price for arranging repair, replacement, or calibration services for their glass windshield.

Senate Bill 7052 – Insurer Accountability

Commencing on July 1, 2023.

Senate Bill 7052 includes provisions to increase the accountability and the Office of Insurance Regulation’s (OIR) oversight of insurance companies in Florida.

OIR conducts examinations of insurance firms.

During an examination or investigation, if the OIR has reason to believe that a law may have been violated or has been violated, they shall refer information and records to the Department of Financial Services’ division of forensic and investigative services, as well as to assisting prosecutors and law enforcement agencies.

After a hurricane, in the event that the insurance company receives a specific amount of consumer grievances and/or demands, OIR is obligated to perform market conduct investigations on insurance firms within 90 days and grants supplemental power.

Outlines when OIR must prioritize examinations of insurance companies based on complaints related to the handling of claims and violations of law.

The financial state to meet the following needs and the wider public, lenders, or policyholders of an insurance firm could be risky if OIR decides to continue operations. Which financial details ought to be taken into account is summarized.

Reporting.

The Office of Insurance Regulation (OIR) must create an annual and quarterly report that includes all the details of actions taken to enforce insurance compliance with laws and regulations, penalties for violations, and actions taken by licensed professional insurance companies or insurance companies to enforce insurance.

OIR must conduct examinations of high-risk insurance companies at least once every 3 years, and average- and low-risk insurance companies at least once every 5 years.

Insurance companies are required by the OIR to temporarily suspend the writing of new residential property insurance policies for at least 20 days in advance of a planned notification.

The insurance company must create a list of all versions of the report, whether to retain or change, and include any changes made by the adjuster. However, the report prohibits the adjuster from amending or altering it without providing a detailed explanation for why any changes were made, as this could affect the reduction of the estimated loss.

Mandates that insurance firms display on their webpage the available hurricane prevention reductions offered to their policyholders.

Sanctions Imposed on Insurance Firms.

Grants OIR the authority to increase enforcement fines on insurance firms that fulfill certain criteria.

The maximum penalty amount for a licensed insurance professional is raised to $1,000 and for an entity is increased to $5,000 if they fail to respond promptly. The time frame for insurance companies or licensed insurance professionals to respond to inquiries from the Department of Financial Services is reduced from 20 days to 14 days.

In general, the OIR can raise the maximum administrative fines imposed on insurance companies by 250 percent. Moreover, for violations arising from a state of emergency declared by the Governor, such as a hurricane, the fines can be increased by 500 percent.

Violation of this provision is punishable as a third-degree felony. It prohibits directors and officers of insurance companies that are insolvent or impaired from receiving a bonus from another entity owned by the same insurance company or by a different entity owned by the same insurance company.

Coverage.

Claims that remain open for 24 months after the date of servicing started by the Florida Guaranty Insurance Association (FIGA) are handled by the Citizens Property Insurance Corporation, which covers properties under the requirements of the Association.

Starting from July 1, 2023, any rate filing for residential properties and motor vehicles that is made or pending must include the expected cost savings resulting from the combined impact of recent laws.

Insurance companies are not allowed to cancel a residential property insurance policy until the damage caused by a hurricane has been repaired for a period of 90 days. In the case of an open claim, the policy cannot be cancelled by insurance companies until the property has been repaired or until 1 year after the insurance company issues the final claim payment, whichever comes first, for any other types of losses. This rule specifically applies to damage caused by Hurricanes Ian and Nicole.

House Bill 799 – Property Insurance

Effective Date: Unless otherwise specified, the changes will take effect on July 1, 2023.

House Bill 799 introduces the following modifications to property insurance:.

Requires insurance companies to take into account the impact of wind uplift prevention mitigation techniques when filing residential property insurance rate filings.

For policies issued after November 1, 2023, the annual rate increase limit is excluded, excluding new policies from Citizens Property Insurance Corporation (Citizens), and permitting rate hikes of up to 50% on those policies. This rule applies to policies covering non-primary residences and properties formerly insured by bankrupt companies.

The following properties covered by Citizens must obtain flood insurance by:.

Structure or Unit Dwelling Replacement Cost	Date Flood Insurance Must be Secured by
$600,000 or more	January 1, 2024
$500,000 or more	January 1, 2025
$400,000 or more	January 1, 2026
For all other personal lines residential property insured by Citizens	January 1, 2027

Condo owners who have policies that exclude wind damage coverage are not obligated to obtain flood insurance, unlike those who have Citizens policy types.

Enables individuals to engage with the Division of Administrative Hearings to settle disagreements regarding claims with insured individuals.

The flood insurance policyholder must verify that they have flood insurance and require the policyholder to have coverage for wind issues. Insurance companies must renew or issue the flood insurance policy, which is effective from October 1, 2023.

If the insurance company mandates flood insurance, a claim for wind damage may be rejected if the consumer lacks flood insurance.

The insured individual must sign a written confirmation.

House Bill 837 – Civil Remedies

Effective Date: These modifications took effect on March 31, 2023, the day Governor DeSantis endorsed the legislation.

House Bill 837 modifies various elements concerning civil remedies. Here are some key points regarding the insurance-related modifications incorporated in the bill:

False Claims with Ill Intent.

The bill establishes the requirements for what constitutes a bad faith claim and the maximum amounts that a company would be required to pay for insurance.

Ensured their backing by providing enough evidence, if only to support their claim.

The insured, claimants, and representatives of the insured are obliged to provide information concerning the claim – this is known as “good faith”. A judge has the option to assess whether the insured, claimant, or representative of the insured did not act in good faith, which could potentially diminish the damages granted to the insurer.

Attorney Fees.

The bill modifies the calculation method for attorney’s fees granted by the courts, eliminating the previous provision that allowed one-way attorney fees for lawsuits against surplus lines insurance companies, lawsuits to enforce an insurance policy against insurers, and various other categories.

House Bill 881 – My Safe Florida Home Program

Commencing on July 1, 2023.

House Bill 881, the My Safe Florida Home Program, extends the size of all eligible Florida residences that fulfill designated conditions. Within the wind-borne debris zone, it is no longer mandatory for homes to adhere to this requirement.

A homestead exclusion on the qualified property must be given.

Townhomes receive inspections. Grants are available for the opening protection (doors and windows) of the townhomes. Repairs to roofs and other areas of the townhomes are not eligible under the program.

Raises the coverage amount for qualifying residences to $700,000 or below.

Raises the permissible grant sum for low-income homeowners to $10,000.

House Bill 1185 – Consumer Protection

Start Date: July 1, 2023.

House Bill 1185 introduces the following modifications in relation to safeguarding consumer rights:

Disclosures of Distributed Energy System (DEGS) (Solar Panels).

The replacement of your roof may require the installation of a distributed energy generation system. Prior to installing a distributed energy generation system, you should consider the remaining life and age of your roof. “Including: companies that lease or sell distributed energy generation systems are required to provide disclosures to consumers” (as mandated by the Distributed Energy Generation Systems Act).

Before entering into a lease or purchase agreement, you need to confirm whether your current coverage or policy will need to be modified to accommodate the installation of a distributed energy generation system. You are responsible for contacting your insurance carrier to confirm this. Your future insurance premiums may be impacted by the installation of the distributed energy generation system on your roof.

Public Adjusters.

The legal representative of the named insured, or the named insured themselves, must have a written agreement with the named insured. Otherwise, they will not be able to charge a fee for any services provided to a named insured as a public adjuster after July 1, 2023.

After the contract has been signed, the insured agrees to pay for those writing services, unless the insured agrees to pay for those writing services, unless a third party on behalf of the insured provides those services in pursuit of a settlement of the insured’s claim.

If an insured is represented by a public adjuster in a claim, the fees of the public adjuster shall be paid by the third party and not by the insured named in the claim, unless the insured named in the claim represents someone other than any other public adjuster.

If a public adjuster’s contract was entered into based on events that are subject to a declaration of a state of emergency, the claimant or insured may cancel the contract without penalty or obligation to adjust a claim within 30 days after the date of loss or within 10 days after the date on which the contract is executed.

If the contract was entered into based on events that were subject to an emergency declaration by the Governor, the claimant or insured has the right to cancel the contract within 30 days of the date of loss, provided that the contract was executed after the contract was entered into. The required disclosures to include following contracts are Public Adjuster.

If the public adjuster fails to provide an estimate within 60 days, the insured or claimant can cancel the contract, unless there are uncontrollable factors that caused the failure to provide the estimate.

Company adjuster, independent adjuster, and public adjuster: the types of adjusters who may be involved in the claims adjusting process, a definition.

An explanation that the public adjuster is not a spokesperson for or an employee of the insurance company.

A statement that the policyholder is not obligated to employ a public adjuster but has the option to do so.

The insured has the right to directly communicate with the insurer, attorney, or adjuster of the insurance company regarding any person’s claim settlement. They are entitled to receive an explanation from the insurer.

The obligation of the insured is the remuneration, charge, percentage, or any other form of compensation to be given to a public adjuster, which requires an explanation.

Signed the contract is when the contract is executed of copy unaltered provide to required is adjuster public the that explanation an.

A contract that does not meet the disclosure obligations is not legally binding.

A public adjuster may not charge the insured more than 1% of the insurance claim payments if the commitment to pay or the written payment is provided within 10 days after the date of loss, or within 14 days after the contract adjusting the public is executed. Additionally, the insurer must pay the insured an amount that is greater than or equal to the limit of the policy, as part of that policy.

A public adjuster may not charge the insured for any amount of insurance claim payments to adjust the policy coverage, where the written agreement or payment claim occurs before the date on which the insurer pays the insured under the contract.

Public insurance adjusters must display their license at their business location or carry it on them when conducting business.

Public adjusting agreements must include the telephone number and email address of the public adjuster provided.

Any page in a public adjusting contract that does not have the insured’s signature is required to be initialed by the insured.

A public adjuster may not receive payment for services prior to delivering a copy of the signed contract to the insured or claimant and keeping a copy for themselves.

Hurricane Deductible.

A hurricane deductible applies from the time a hurricane warning is issued until 72 hours following the termination of the last hurricane watch or warning issued for any part of the state by the National Hurricane Center. Output: The hurricane deductible is applicable from the moment a hurricane warning is released until 72 hours after the conclusion of the latest hurricane watch or warning issued for any region of the state by the National Hurricane Center.

Insurance Cancellations.

The insurance company has issued a policy that can be cancelled within 60 to 90 days if there is a failure to comply with the underwriting requirements or if there is a material misrepresentation or misstatement, except in certain cases. The number of days for the insurance company to cancel the policy has been changed by the bill.

Citizens Property Insurance Corporation may immediately cancel a policy if an insured company fails to comply with the underwriting requirements or engages in material misrepresentation for a period of less than 90 days, resulting in the company becoming insolvent.

Special Session May 2022

Governor DeSantis affixed his signature to both Senate Bill 2D and Senate Bill 4D on May 26, 2022. The Legislature successfully approved two bills, namely Senate Bill 2D and Senate Bill 4D, during a dedicated Special Legislative Session with the sole purpose of tackling property insurance matters. The Special Legislative Session conducted by the Florida Legislature has come to a close.

All changes are now in effect. Here is a summary of significant modifications that will affect you as a policyholder for property insurance. Both bills incorporate alterations.

Senate Bill 2D

Senate Bill 4D

The information in this summary is obtained from the analysis carried out by the Florida Legislature and the language of the bill.

Special Session December 2022

To examine the bill in its entirety, please visit https://www.Flsenate.Gov/Session/Bill/2022A/2A/BillText/er/PDF. The summary is based on information provided by the Florida Legislature, with additional details and the impact on consumers included. Here is a summary of some of the major modifications. Among the various laws passed, the Senate Bill 2A, approved by the Legislature, introduces extensive changes to the process of handling property insurance claims, reinsurance, regulation of insurance companies, and other related aspects. The Florida Legislature came together for a Special Session specifically focused on addressing property insurance and other subjects, commencing on December 12, 2022.

Senate Bill 2A

Contact Your ICA

Tasha Carter.

You can contact the Office of the Insurance Consumer Advocate in Florida at 200 East Gaines Street, Tallahassee, FL 32399, by calling (850) 413-5923 or by sending an email to YourFLVoice@MyFloridaCFO.Com.