Recent Property Insurance Changes
2023 Legislative Session
December 2022 Special Session
May 2022 Special Session
Senate Bill 154 – Condominium and Cooperative Associations
Effective Date: The bill outlines specific dates as to when inspections should be complete. Unless specifically stated in the bill, the changes became effective on June 9, 2023, the date Governor DeSantis signed the bill.
Bill Text: Senate Bill 154
Senate Bill 154 makes the following changes:
- These Citizens policy types are not required to have flood insurance:
- Policies that do not provide coverage for wind damage and condominium unit owners.
- Makes changes to the professionals who can conduct the condominium milestone inspection and structural integrity reserve study.
- Makes changes to what should be included in the inspection and who should arrange it.
- Outlines when the condominium milestone inspection should be conducted and notification requirements.
- Allows the local law enforcement agency to make specific decisions regarding inspections.
- Outlines requirements for reserve accounts.
- The following buildings are exempt from the inspection requirements: buildings less than three stories; single-family, two-family, or three-family dwellings with three or fewer habitable stories; any portion or component of a building not owned by the association; or any portion or component of a building that is maintained by another party.
- Outlines notification requirements regarding inspections/reports when selling the property.
Senate Bill 1002 – Motor Vehicle Glass
Effective Date: The changes became effective on May 25, 2023, the day Governor DeSantis signed the bill.
Bill Text: Senate Bill 1002
Senate Bill 1002 makes the following changes related to motor vehicle glass (windshield):
- It is a violation of law for a motor vehicle repair shop or employee to:
- Offer a rebate, gift, gift card, cash, coupon or anything of value in exchange for making an insurance claim for vehicle glass replacement or repair, including, but not limited to, calibration or recalibration. A person who is not an employee
but is compensated for the solicitation of insurance claims is also prohibited from making such an offer.
- Fail to provide electronic or written notice if calibration or recalibration of the windshield is required.
- Offer a rebate, gift, gift card, cash, coupon or anything of value in exchange for making an insurance claim for vehicle glass replacement or repair, including, but not limited to, calibration or recalibration. A person who is not an employee
but is compensated for the solicitation of insurance claims is also prohibited from making such an offer.
- For policies issued or renewed on or after July 1, 2023, consumers are prohibited from signing over vehicle insurance benefits to a third party such as a vehicle repair shop.
- An insurance company, agent, adjuster, or representative cannot require a consumer to use a specific company or location for windshield replacement, repair, or calibration services or windshield glass products.
- An insurance company, agent, adjuster, or representative may provide an explanation of motor vehicle comprehensive coverage benefits and any applicable limit of liability to a consumer.
- An insurance company or representative must provide an actuarially sound discount if they offer, and the consumer accepts, a policy that contains a managed repair arrangement for windshield replacement, repair, or calibration services or windshield glass products.
Senate Bill 7052 – Insurer Accountability
Effective Date: July 1, 2023
Bill Text: Senate Bill 7052
Senate Bill 7052 includes provisions to increase the accountability and the Office of Insurance Regulation’s (OIR) oversight of insurance companies in Florida.
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Examinations of Insurance Companies – Conducted by OIR
- During an investigation or examination, if OIR has reason to believe that a law has or may have been violated, OIR shall refer records and information to the Department of Financial Services Division of Investigative and Forensic Services, law enforcement or prosecutors and assist with the investigation.
- Gives additional authority and requires OIR to conduct market conduct examinations on insurance companies 90 days following a hurricane if the insurance company reaches a certain level of consumer complaints, and/or claims.
- Outlines when OIR must prioritize examinations of insurance companies based on complaints related to the handling of claims and violations of law.
- Outlines what financial information should be considered by OIR to determine if the continued operation of an insurance company may be hazardous to its policyholders, creditors or general public and the subsequent requirements to address the financial
condition.
Reporting
- The Office of Insurance Regulation (OIR) must create a quarterly and annual report that details all actions taken to enforce insurance companies’ compliance with insurance law and code. The report must include the insurance company or licensed insurance professional, the action taken, violation, penalties, etc.
- OIR must examine high-risk insurance companies at least every 3 years and average- and low-risk insurance companies at least once every 5 years.
- Requires insurance companies to notify OIR at least 20 days in advance of a plan to temporarily suspend writing of new residential property insurance policies.
- Prohibits altering or amending an adjuster’s report without providing a detailed explanation as to why any change that has the effect of reducing the estimate of the loss was made. The insurance company must also either create a list of changes and who made the change or retain all versions of the report.
- Requires insurance companies to post on their website the hurricane mitigation discounts available to policyholders.
Penalties Levied on Insurance Companies
- Authorizes OIR to enhance enforcement penalties on insurance companies that meet specific criteria.
- Decreases the amount of time an insurance company or licensed insurance professional has to respond to an inquiry from the Department of Financial Services from 20 days to 14 days. Increases the maximum penalty amount for not responding timely to $5,000 for an entity and $1,000 for an individual licensed insurance professional.
- Increases maximum administrative fines that may be levied by OIR on insurance companies by 250 percent generally, and 500 percent for violations stemming from a Governor-declared state of emergency such as a hurricane.
- Prohibits officers and directors of impaired or insolvent insurance companies from receiving a bonus from that insurance company or other entity owned by that insurance company. Violation of this provision is punishable as a 3rd degree felony.
Coverage
- Requires Citizens Property Insurance Corporation to cover properties with open claims that are being handled by the Florida Insurance Guaranty Association (FIGA) for 24 months after the date FIGA started servicing the claim or 24 months after FIGA closes
the claim, whichever is earlier.
- Requires every residential property and motor vehicle rate filing made or pending after July 1, 2023, to reflect the projected cost savings anticipated due to the combined effect of recent legislation.
- Prohibits insurance companies from cancelling a residential property insurance policy until 90 days after damage caused by a hurricane has been repaired. All other types of losses, insurance companies cannot cancel a policy when there is an open claim
until the property has been repaired or 1 year after the insurance company issues the final claim payment, whichever is earlier. This provision applies to damage caused by Hurricanes Ian and Nicole.
House Bill 799 – Property Insurance
Effective Date: Except as otherwise stated, the effective date of the changes is July 1, 2023.
Bill Text: House Bill 799
House Bill 799 makes the following changes to property insurance:
- Requires insurance companies to take into account the impact of wind uplift prevention mitigation techniques when filing residential property insurance rate filings.
- Excludes new Citizens Property Insurance Corporation (Citizens) policies issued after November 1, 2023, from the annual rate increase cap, and allows for rate increases on those policies up to 50%.
- This applies to polices for non-primary residences and for properties previously covered by companies that went insolvent.
- The following properties covered by Citizens must secure flood insurance by:
| Structure or Unit Dwelling Replacement Cost | Date Flood Insurance Must be Secured by |
| $600,000 or more | January 1, 2024 |
| $500,000 or more | January 1, 2025 |
| $400,000 or more | January 1, 2026 |
| For all other personal lines residential property insured by Citizens | January 1, 2027 |
- These Citizens policy types are not required to have flood insurance:
- Policies that do not provide coverage for wind damage and condominium unit owners.
- Policies that do not provide coverage for wind damage and condominium unit owners.
- Allows Citizens to contract with the Division of Administrative Hearings to resolve claim disputes with policyholders.
- Effective October 1, 2023, insurance companies that issue wind coverage and require a policyholder to have flood insurance must verify that the policyholder has flood insurance at the time the policy is issued or renewed.
Master flood policies are acceptable.
- An insurance company can deny a claim for wind damage if the consumer does not have flood insurance (if flood insurance is required by the insurance company).
- The policyholder must sign a written acknowledgement.
House Bill 837 – Civil Remedies
Effective Date: These changes became effective on March 31, 2023, the day Governor DeSantis signed the bill.
Bill Text: House Bill 837
House Bill 837 changes many aspects related to civil remedies. Below are highlights of the insurance-related changes included in the bill:
Bad Faith Claims
- The bill establishes the requirements for what constitutes a bad faith claim and the maximum amounts that an insurance company would be required to pay.
- Bad faith lawsuits are prohibited if the insurer has paid the insured either the amount they are seeking or the policy limits, whichever is less, within 90 days of receiving notice of the claim, and only if the insured has provided sufficient evidence to support their claim.
- Insureds, claimants, and representatives of the insured have a duty to furnish information regarding the claim – this is referred to as “good faith”. A judge may consider whether the insured, claimant, or representative for the insured did not act in good faith which may reduce the damages awarded against the insurer.
Attorney Fees
- The bill changes the method used to calculate attorney’s fees awarded by the courts. One-way attorney fees for lawsuits against surplus lines insurance companies, lawsuits against insurers to enforce an insurance policy, and several other categories are no longer allowed.
House Bill 881 – My Safe Florida Home Program
Effective Date: July 1, 2023
Bill Text: House Bill 881
House Bill 881 expands the My Safe Florida Home Program to all Florida homes that meet specified criteria. There is no longer a requirement for homes to be in the wind-borne debris region.
- A homestead exemption on the eligible property must be granted.
- Townhomes are eligible to receive inspections. Grants are available for townhome’s opening protection (doors and windows). Roofs and other areas of townhomes are not eligible repairs under the program.
- Increases the insured value of eligible homes to $700,000 or less.
- Increases the allowable grant amount for low-income homeowners to $10,000.
House Bill 1185 – Consumer Protection
Effective Date: July 1, 2023
Bill Text: House Bill 1185
House Bill 1185 makes the following changes related to consumer protection:
Distributed Energy System (DEGS) Disclosures (Solar Panels)
- Requires companies that sell or lease distributed energy systems (DEGS) provide disclosures to consumers including:
- "You should consider the age and remaining life of your roof prior to installing a distributed energy generation system. Replacement of your roof may require a reinstalment of the distributed energy generation system."
- "Placing a distributed energy generation system on your roof may impact your future insurance premiums. You are responsible for contacting your insurance carrier, prior to entering into a purchase or lease agreement, to confirm whether your
current policy or coverage will need to be modified upon installing the distributed energy generation system onto your dwelling."
Public Adjusters
- After July 1, 2023, a public adjuster may not:
- Collect a fee for services on payments made to a named insured unless they have a written contract with the named insured, or the named insured's legal representative.
- Contract for services provided by a third party on behalf of the insured or in pursuit of a settlement of the insured’s claim, when the insured is paying for those services unless the insured agrees to pay for those services in writing, after the contract for public adjusting services has been signed.
- If a public adjuster represents anyone other than the named insured in a claim, the public adjuster fees shall be paid by the third party and may not be charged to the named insured.
- If a public adjuster contract was entered into based on events that are the subject of a declaration of a state of emergency by the Governor, an insured or claimant may cancel the public adjuster's contract to adjust a claim without penalty or obligation within 30 days after the date of loss or 10 days after the date on which the contract is executed, whichever is longer.
- Public adjuster contracts are required to include the following disclosures:
- The insured or claimant has the right to cancel the contract within 30 days of the date of loss or 10 days after the date on which the contract was executed, if the contract was entered into based on events that were the subject of a declaration of emergency by the Governor.
- The insured or claimant has the right to cancel the contract if the public adjuster does not provide a written estimate within 60 days, unless the failure to provide the estimate was based on factors beyond the public adjuster’s control.
- A definition of the types of adjusters who may be involved in the claims adjusting process: company adjuster, independent adjuster, and public adjuster.
- An explanation that the public adjuster is not a representative of or an employee of the insurance company.
- A statement that the insured is not required to hire a public adjuster but has the right to do so.
- An explanation that the insured has the right to communicate directly with the insured’s attorney, the insurer, the company adjuster, the insurer’s attorney, or any person regarding the settlement of the insured’s claim.
- An explanation that the public adjuster's salary, fee, commission, or other consideration to be paid to a public adjuster is the insured's responsibility.
- An explanation that the public adjuster is required to provide an unaltered copy of the executed contract at the time the contract is signed.
- A contract that does not comply with the disclosure requirements is unenforceable.
- A public adjuster may not charge more than 1% of the insurance claim payments or settlements, paid to the insured by the insurer for any coverage part of the policy where the claim payment or written agreement by the insurer to pay is equal to or greater than the policy limit for that part of the policy, or if the payment or written commitment to pay is provided within 14 days after the date of loss or within 10 days after the date on which the public adjusting contract is executed, whichever is later.
- A public adjuster may not charge the insured for any amount of the insurance claim payments or settlements, paid to the insured by the insurer for any coverage part of the policy where the claim payment or written agreement by the insurer to pay occurs before the date on which the public adjusting contract is executed.
- Public adjusters are required to post their license at their place of business or have on their person when conducting business.
- Public adjusting contracts are required to have the phone number and e-mail address of the public adjuster listed.
- Any page in a public adjusting contract that does not have the insured’s signature is required to be initialed by the insured.
- A public adjuster may not receive payment for services prior to delivery of an executed contract to the insured or claimant, and the adjuster is required to keep a copy of the signed contract for five years.
Hurricane Deductible
- A hurricane deductible applies from the time that a hurricane warning is issued until 72 hours following the termination of the last hurricane watch or warning issued for any part of the state by the National Hurricane Center of the National Weather Service.
Insurance Cancellations
- The bill changes the number of days an insurance company has from 90 to 60 days to cancel a policy after it has been issued, except in cases of material misstatement, misrepresentation, or failure to comply with the underwriting requirements established by the insurance company.
- Citizens Property Insurance Corporation may immediately cancel a policy that has been in effect for 90 days or less for material misrepresentation or failure to comply with underwriting requirements if the property had most recently been insured by
an insolvent company.
Special Session December 2022
The Florida Legislature convened for a Special Session specifically to address property insurance and other topics starting December 12, 2022. Among the legislation, the Legislature passed Senate Bill 2A, which makes sweeping changes to the property insurance claims process, reinsurance, regulation of insurance companies and more. Below is a summary of some of the key changes. The basis of the summary is provided by the Florida Legislature with context and consumer impact added. To review the bill in its entirety, visit https://www.flsenate.gov/Session/Bill/2022A/2A/BillText/er/PDF.
Senate Bill 2A
Special Session May 2022
The Florida Legislature concluded a Special Legislative Session specifically to address property insurance. The Legislature passed two bills – Senate Bill 2D and Senate Bill 4D – and Governor DeSantis signed each on May 26, 2022.
Both bills include changes that will impact you as a property insurance policyholder. Below is an overview of key changes. All
changes are effective immediately.
Senate Bill 2D
Senate Bill 4D
Information in this summary is derived from the analysis conducted by the Florida Legislature and bill language.
Contact Your ICA
Tasha Carter
Florida's Insurance Consumer Advocate
Office of the Insurance Consumer Advocate
200 East Gaines Street, Tallahassee, FL 32399
Phone: (850) 413-5923
Email: YourFLVoice@MyFloridaCFO.com
