Florida’s legislative session introduced several bills addressing property insurance. These proposals cover claim disputes, public adjuster regulations, and insurer obligations.
House Bill 1087 would require policyholders to file a petition with the Division of Administrative Hearings for disputed claims.
Insurers must inform policyholders of this process when issuing or renewing policies and when a claim is filed. If an administrative judge approves the petition, the insurer has 14 days to resolve the claim or provide a response explaining why payment is denied.
Senate Bill 230 sets conditions for pursuing extracontractual damages against insurers. It prevents these claims unless a court first determines the insurer breached the contract (see TOP 100 P&C Insurers in the U.S.).
The bill also requires claimants to notify insurers before filing a suit, detailing the violation, the damages sought, and supporting documentation.
SB 230 further establishes communication rules for adjusters. When contacting policyholders via text, adjusters must state their appointment type only in the first message.
The bill also prohibits public adjusters from recording claims personnel or consultants without consent and from engaging in adversarial conduct. House Bill 1047 contains similar provisions and addresses general line agent licensing.
Current law prevents insurers from canceling or not renewing a policy for 90 days after repairs are made for hurricane or wind damage. House Bill 841 would extend this protection to flood damage caused by hurricanes, applying until repairs are complete or the policy period ends.
Exceptions exist, such as when a policyholder fails to respond to an insurer’s inquiry on repair status within 30 days.
Senate Bill 1466 proposes the creation of the My Safe Florida Home Trust Fund. It would receive 5% of state sales tax collected in areas hit by a hurricane for two months following landfall.
The Department of Revenue must deposit funds within three months. The trust fund cannot exceed $300 mn, with any excess redirected to the state’s general revenue fund.
Senate Bill 1740 focuses on home hardening grants. Only projects leading to insurance mitigation credits, discounts, or other rate reductions would qualify. The state regulator may require improvements to all openings, including doors, windows, and skylights, for grant eligibility.
The Florida Office of Insurance Regulation has approved requests from eight carriers to take over 232,535 personal residential multiperil policies and 2,500 residential wind-only policies from Citizens Property Insurance Corp.
Top 5 homeowners’ multiperil insurance companies in Florida by direct premiums were Citizens Property Insurance Corp. with an 18.57% market share, Universal Insurance Holdings Group at 8.47%, State Farm Group at 6.88%, Florida Peninsula Group at 4.88%, and Tower Hill Group at 4.35%.
House Bill 1087 proposes a mandatory administrative process for resolving disputed property insurance claims in Florida.
Policyholders must file a petition with the Division of Administrative Hearings (DOAH) to address claim disputes. Insurers are required to inform policyholders about this procedure when issuing or renewing policies, or upon a claim’s submission.
Once an administrative law judge approves the petition, the insurer has 14 days to either settle the claim or file a response detailing reasons for non-payment.
The bill also repeals sections 627.70151, 627.70152, 627.70153, and 627.70154 of the Florida Statutes. These sections pertain to appraisal clauses in property insurance contracts, lawsuits under property insurance policies, consolidation of residential property insurance actions, and mandatory binding arbitration of such policies, respectively.
HB 1087 designates the homeowner’s insurance policy as the primary coverage when other policies might apply, granting the insurer subrogation rights to recover paid amounts from other responsible parties.
Furthermore, the bill mandates that the Department of Financial Services create a consumer information pamphlet outlining this new claims resolution process, which insurers must provide to policyholders. The bill also updates related statutes to align with these changes.
If enacted, the legislation aims to streamline the resolution of property insurance disputes, offering a more efficient alternative to traditional appraisal and litigation methods.
