(561) 716-1488   

BLOG

 Changes in State Laws affect Corporate Policies

9/8/23

Florida Senate Bill 2D (CS/SB 2-D) was passed to make property insurance more accessible and affordable for homeowners.

Here is how this legislation impacts you:

  1. Reinsurance to Assist Policyholders (RAP) Program:

    • The Reinsurance to Assist Policyholders (RAP) program creates a $2 billion reimbursement fund for insurers.

    • Insurers do not pay premiums for RAP program coverage but must reduce rates to reflect savings.

  2. My Safe Florida Home Program:

    • The "My Safe Florida Home" program allocates $150 million to provide hurricane mitigation inspections and matching grants for retrofitting single-family homes valued at $500,000 or less.

  3. Contractor Solicitation of Roof Claims:

    • Insurance companies can no longer refuse to write or renew policies on homes with roofs less than 15 years old solely based on age.

  4. Roof Deductibles:

    • Insurers may now offer policies with a separate deductible specifically for roof claims, which could help lower premiums.

  5. Roofs – Insurer Underwriting:

    • Prohibits an insurer from refusing to issue or renew a homeowner’s insurance policy for a residential structure with a roof less than 15 years old solely because of the roof's age.

  6. Insurer Claims Handling:

    • Requires property insurers to conduct any physical inspection of the property related to a claim within 45 days of receiving proof of loss statements.

  7. Civil Remedy:

    • Requires a claimant to establish that a property insurer breached the insurance contract to prevail in a bad faith claim for extracontractual damages.

  8. Attorney Fees:

    • The bill introduces new standards to prevent excessive attorney fees. Additionally, if a lawsuit is filed against an insurer without the required "Notice of Intent," the insurer may be awarded legal fees if the case is dismissed.

  9. Assignment of Benefits (AOB):

    • Protections have been strengthened for homeowners. Now, any Assignment of Benefits agreement must state that the third party (such as a contractor) protects the homeowner from any resulting liabilities or legal fees.

  10. Regulation of Insurers and Insurer Transparency:

    • Creates a Property Insurer Stability Unit within the Office of Insurance Regulation (OIR) to aid in the detection and prevention of insurer insolvencies in the homeowners’ and condominium unit owners’ insurance market.

The bill aims to address the challenges faced by homeowners in Florida regarding property insurance and to ensure that insurance companies operate transparently and responsibly.