The issue of property insurance was addressed recently at the Florida Legislature, convened for a special session. The legislature passed Senate 2A, which will mean changes to the property insurance claims process, reinsurance, regulation of insurance companies, and more. 

At Boggs Law Group, we welcome improvements for policyholders, and we are happy to explain these changes. Let’s look at the Bill and see what impact it’s likely to have on you, the policyholder.

  1. Reinsurance

Reinsurance is insurance that insurance companies purchase. Reinsurance rates are expected to rise by 50% or more and to cover the cost, insurance companies pass on the expense to policyholders in the form of premium increases.

The Florida Optional Reinsurance Assistance (FORA) Program for the 2023 hurricane season will provide optional reinsurance that insurance companies can purchase at reasonable/near-market rates. 

  1. Claim filing deadline

There is less time for a policyholder now to report a claim – from 2 years to 1 year for a new or reopened case, and from 3 years to 18 months for a supplemental claim. 

  1. Prompt pay laws for property insurance

Insurance companies have less time to pay or deny a claim, less time to review and acknowledge a claim, and less time to begin an investigation of a claim. They also have less time to carry out a physical inspection. They are required to send the adjusters report promptly, which estimates the damage. 

  1. Awards of attorney fees

The Bill states that each party is now responsible for the payment of their own attorney fees.

  1. Assignment of benefit

It will be no longer possible to assign any post-loss insurance benefit under any residential or commercial property insurance policy. 

  1. Regulation on insurance in Florida by the Office of Insurance Regulation (OIR)

The bill strengthens OIR’s power. The bill appropriates funds for OIR and allows OIR to discipline insurance companies for abuse.

  1. Bad faith failure to settle actions against property insurers

A court finding is now required before a policyholder can sue a property insurance company for bad faith. 

  1. Citizens property insurance 

The Bill means changes for policyholders relating to take-out offers and renewables.

  1. Flood notice

The Bill requires a flood notice to be part of the declaration page of an insurance policy, encouraging policyholders to purchase flood insurance.

  1. Arbitration

A neutral party (the arbitrator) may address disputes in a property claim, including coverage. They will listen to and review evidence from policyholders and insurance companies, to determine the outcome.

Here for you when it counts

Senate Bill 2A is intended to ensure that policyholders have access to quality, affordable property insurance. The bill is designed to hold property insurance companies accountable, and to communicate, investigate and pay valid claims promptly. 

At Boggs Law Group, we support all changes that will allow policyholders to claim what they deserve. We welcome the stabilization of the Florida property insurance market, increased competition, better regulation of insurance companies, and strengthened consumer protection. 

There’s so much to understand when it comes to insurance law, and that’s why we keep ourselves up to date with the changing laws. We are here to answer any questions you may have about the Bill, and how it affects you.

Making an insurance claim can sometimes mean that you’re up against an insurance giant and subjected to claim delays, denials, and unfair offers. Boggs Law Group is dedicated to helping you to fight for what you deserve. We’ve got the experience, the skills, and the expert knowledge. Reach out and tell us about your situation.