Fla. gets updated property insurance law
While the governor signed one property insurance bill into law, another dealing with public adjusters is waiting in the wings.
Florida Senate Bill (SB) 76, which covers a host of issues regarding property insurance, was signed into law by Gov. Ron DeSantis, while a consumer protection bill that will change public adjuster requirements in the state is expected to be signed soon.
“Florida’s property insurance market has been in crisis for years. Besides weather events, bad actors have been targeting homeowners and insurance companies. Over the past seven years, insurance companies have paid out over $15 billion in claims, out of which over $10 billion went to attorney’s fees,” State Representative Bob Rommel said in a release. “We have over 1,100 people a day moving to Florida, and we need to ensure that consumers have the ability to obtain affordable insurance policies from private companies and not just Citizens, which was originally set up as the insurer of last resort. SB 76 will stabilize the market and should attract new insurance carriers to Florida.”
Intending to address litigation cost drivers and hailed as a law that could save Florida’s economy, SB 76’s provisions include requiring plaintiffs to file a pre-suit demand at least 10 days before filing a lawsuit against an insurer that includes an estimate of the demand, the attorney fees and cost demanded, and the amount in dispute. It also makes it illegal for roofing contractors to solicit a claim from policyholders, according to PropertyCasualty360.com sister site the Insurance Coverage Law Center (ICLC).
Additional provisions mandate that attorneys’ fees are “contingent on obtaining a judgment for indemnity that exceeds the pre-suit offer made by the insurance company,” ICLC reported. Further, SB 76 requires claims to be made within two years from the date of the loss and supplemental claims must be filed within three years of the loss. An insurer may require mediation or ADR after receiving notice.
The bill also proposes a replacement cost coverage table that takes into account the useful life left on a roof. For example, if a roof is 10 years old, an insurer would use the table to subtract 10 years of useful life from the replacement cost of the roof.
For attorneys, the bill also includes an intent to litigate provision that requires plaintiff attorneys to give notice that they intend to sue. The carrier will then have the opportunity to do further investigation or pay the demand to avoid litigation, according to ICLC, which took a deep dive into the provisions of SB 76.
In a release, Florida Insurance Commissioner David Altmaier commented: “The action builds on the commitment the DeSantis administration has shown since day one to make meaningful insurance reforms that help protect all Floridians by promoting the long-term sustainability of Florida’s insurance market and keeping our market competitive. Senate Bill 76 takes important steps to address the unique challenges facing the Florida property insurance market, address cost drivers within the market, and help stabilize rates for consumers.”
Changes to public adjuster rules
Expected to be signed into law soon, SB 1598 is a consumer protection bill that, among other things, overhauls some rules regarding public adjusters.
A provision of the bill would extend the time consumer have to rescind a contract with a public adjuster from three days to 10. Additionally, the proposal would require public adjusters to send insurers a detailed estimate, including itemized repair costs, 60 days after signing a contract with an insured.
Further, the new law would require public adjusters to be licensed by the state and would prohibit compensation by contractors or attorneys.
SB 1598 would also require insurance companies to respond to policyholders promptly, pay interest on undisputed payments made 90 days after the date of loss, keep records on assigned adjusters and notify policyholders of the adjuster assignment.
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