Regulations for public adjusters updated in Florida

Among other provisions, the new law extends the time consumers have to rescind a contract with a public adjuster.

“We had public adjusters that were not licensed in Florida that would descend upon a neighborhood going door-to-door to get homeowners to sign contracts, and they were exorbitant in their charges,” Michael Steinger, of InjuryLawyers.com. (Credit: jccain/Adobe Stock)

Florida Gov. Ron DeSantis signed into law new requirements for public adjusters as part of a wider piece of legislation addressing consumer protections for the P&C and health insurance marketplaces.

“Florida had public adjusters running amok in this state,” says Michael Steinger, a founder and managing partner of InjuryLawyers.com. “We had public adjusters that were not licensed in Florida that would descend upon a neighborhood going door-to-door to get homeowners to sign contracts, and they were exorbitant in their charges.”

Addressing both of these issues head-on, the new law will require public adjusters to be licensed by the state. Additionally, it will extend the time consumers have to rescind a contract with a public adjuster to 10 days.

Further, public adjusters must now send detailed estimates, which include itemized repair costs, 60 days after signing a contract with a policyholder. These records must be held by the public adjuster for five years and be made available upon request.

As public adjusters were working to quickly sign up entire neighborhoods, “they would also get kickbacks from contractors doing the work and attorneys handling claims,” Steinger explains. The new law prohibits state-licensed public adjusters from being compensated by contractors or attorneys.

It will 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.

This news comes on the heels of Florida updating other property insurance laws to address litigation cost drivers and other provisions for attorneys. These 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, according to PropertyCasualty360.com sister site the Insurance Coverage Law Center.

“We have had runaway property insurance litigation in this state, and it has gotten out of hand,” Steinger says. “This legislative session was focused on fixing those issues. I think there is always fraud within the system, but the intent of both of these laws should have the desired effect.”

Both new laws take effect on July 1, 2021.

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