New Property Insurance Changes – Legislature Approves Property Bill
After a long and sometimes bitter battle, the Florida Legislature passed a property insurance bill, CS/CS/CS/SB 408 that makes significant changes even if it did not go as far as earlier drafts. The 129 page bill’s next stop will be the Governor. We will have a more complete report up soon, but here are some highlights. In the meantime if you have questions don’t hesitate to contact any of our insurance team members.
- A 5-year statute of limitation for the breach of a property insurance claim that runs from the date of loss;
- Expands the expedited rate filing to include all reinsurance costs and financing cost and increases the maximum rate increase to 15 percent.
- Provides a three-year deadline for new and reopened hurricane or windstorm claims and two years for sinkhole claims.
- Makes substantial changes in provisions related to sinkhole claims and coverage. Allows insurers to limit coverage to the principal building.
- Extends the prohibition on “use and file” to May 1, 2012.
- Permits notice of change in coverage as opposed to nonrenewing or canceling a policy.
- Permits limited holdback of payments on damage to dwellings not yet repaired and requires a contract to perform repairs on the property. For contents it allows an insurer to offer coverage without the holdback as in current law, and coverage with the holdback at a reduced premium.