Florida Insurance Law Legislative Update

Despite public opposition, Gov. Rick Scott signed SB 408, which drastically changes property insurance for all citizens. Sen. Mike Fasano and other consumer advocates fought against the legislation as too insurer friendly. The bill includes the following changes:

·Expanding exclusions from losses covered by the Florida Hurricane Catastrophe Fund to include losses caused by perils other than a covered event, such as fire, theft, flood or rising water, as well as amounts paid for waivers of deductibles and bad faith awards.

·Limiting public adjuster compensation for reopened or supplemental claims to 20 percent of the claim payment and requiring additional disclosures.

·Requires that all sinkhole be filed within two years of the date of loss.

·Requiring insurers to provide two replacement cost coverage options for payment of personal property insurance claims.

·Requiring a policyholder to file windstorm and hurricane claims within three years

Parts of the bill that failed included provisions that would permit carriers to raise rates without state oversight and approval.