Insurance Reform Passed by Lawmakers and Signed by Governor DeSantis
Senate Bill 2D - Property Insurance passed by a vote of 30-9 in the Senate and 95-14 in the House. Below are a few highlights contained within Senate Bill 2D, which Florida Realtors® actively supported throughout special session:
Senate Bill 2D - Property Insurance passed by a vote of 30-9 in the Senate and 95-14 in the House. Below are a few highlights contained within Senate Bill 2D, which Florida Realtors® actively supported throughout special session:
- Protecting Policyholders from Nonrenewal: Insurers may not refuse to write or renew policies on homes with roofs that are less than 15 years old solely because of the roof's age.
- Roof Solicitations: Requires roofing solicitations to contain consumer-awareness language that the homeowner is responsible for the deductible under the insurance policy, and it is insurance fraud for the contractor to reduce or waive the deductible or file a claim with false or misleading information.
- Roof Deductible: Allows insurance companies to offer a policy at a reduced rate to consumers that includes a roof deductible of up to 2% of the insured value or 50% of the roof replacement cost. Roof deductibles will not apply when there is a total loss to the structure, a loss caused by a hurricane, a roof loss resulting from a fallen tree or other hazard, or a loss requiring a repair of less than 50% of the roof.
- Assignment of Benefits (AOB) Reform: Eliminates attorney fee awards where policyholder benefits have been assigned to a 3rd party.
- Contingency Fee Multiplier: Limits attorney fee multipliers to "rare and exceptional circumstances."
- Notice of Intent to Litigate: Allows insurers to collect attorney fees where a case is dismissed because plaintiff fails to provide required pre-suit notice.
- Civil Remedy Notice: Limits bad faith lawsuits by requiring policyholder to establish an actual breach of contract.
- Improving Affordability for Policyholders: Authorizes $2 billion for a new Reinsurance to Assist Policyholders (RAP) program to help insurers obtain reimbursement for hurricane losses earlier than they normally would under the Florida CAT Fund. This reinsurance is provided by the state at no cost to the insurer. Insurers that participate in RAP must reduce policyholder premiums.
- Home Hardening Grants: Appropriates $150 million to provide hurricane mitigation inspections and matching grants to help Floridians afford home hardening improvements to their homestead single-family residences with an insured value of $500,000 or less. The program provides $2 in grant funds for every $1 provided by the homeowner up to $10,000.
- Holding Insurers Accountable: Prohibits insurance companies from denying claims without communicating sufficient reason. Requires the state to analyze why an insurer failed within two months after insolvency process begins. Strengthens Office of Insurance Regulation insurer oversight.
