DeSantis Signs Florida Senate 2B Insurance Package -

Governor DeSantis signs the Florida Senate passed Property Insurance Package, Senate Bill 2b (2022).

This package is a major victory for Floridians, especially people over 50 who are more likely not to have the funds available to fix a damaged roof if an insurance claim is denied.

The Florida Senate has approved a sweeping legislative package meant to combat rising property insurance rates and other problems in the state’s insurance market. The bill creates a $2 billion reinsurance fund and provides new rules around coverage denials and attorney fees.

The legislative package is meant to combat rising property insurance rates, while addressing other problems in the state’s turbulent insurance market.

The bills would forbid insurers from automatically denying coverage because of a roof’s age is less than 15 years old. Homeowners with roofs 15 years or older would be allowed to get an inspection before insurers deny them coverage.

If an inspection shows that a roof has at least five years of life remaining, insurers can’t refuse to issue a policy only based on the roof’s age, under the proposed legislation.

A roof with more than 25% damaged but complies with the state’s 2007 building code, would only have to be repaired instead of replaced as part of an exemption to the building code that the proposed legislation creates.

Specific provisions to stabilize the market include:

$2 billion in reinsurance relief through the Reinsurance to Assist Policy (RAP) program to benefit policyholders over the next two years.
$150 million for the My Safe Florida Home Program to provide grants to Florida homeowners for hurricane retrofitting, making homes safer and more resistant to hurricane damage, which can result in premium discounts for those who participate in the program.
Prohibiting insurance companies from denying coverage solely based on the age of a roof if the roof is less than 15 years old or if the roof is determined to have at least 5 years of useful life remaining.
Requiring insurance companies to provide policyholders with a reasonable explanation if they deny or partially deny a claim and provides consumers with greater access to information during the claim adjustment process.
Creating a new standard for application of attorney fee multipliers which have been liberally applied, resulting in increased costs to consumers.
Limiting the assignment of attorney’s fees in property insurance cases, disincentivize frivolous claims

Floridians have a major concern with damages to property due to hurricanes. Another measure in the bill would provide grants worth up to $10,000 each to retrofit homes so they are less vulnerable to hurricane damage.

Properties would have to have insured values of $500,000 or less, be homesteaded, constructed before 2008 and located in areas where wind speeds from storms can exceed 140 mph. Homeowners would get $2 from the state for every $1 they invested in mitigation efforts.

This is an important measure for Floridians over 50. Older residents tend to have lived in their homes for longer periods, which means these homes are usually older structures.

The legislation also seeks to limit various attorney fees in insurance-related cases, which insurers blame for much of the rate increases for policyholders.

Supporters of the legislative package have frequently noted that Florida accounted for 9% of all insurance claims filed nationally but nearly 80% of all the property insurance lawsuits.

Senate Democrats pushed to grant immediate rate reductions or freezes for property owners but their amendments were rejected by Republicans who argued the legislation was the best path to stabilize the market in the long term. GOP legislation sponsor Sen. Jim Boyd said the measures would not result in rate decreases before 12 to 18 months.

“My constituents, who I have spent quite a bit of time with over the last several weeks and months, are in desperate, desperate need, not for 18 months from now — today, tomorrow the next day, certainly before hurricane season,” said Sen. Lauren Book, a Democrat.

The bills would allow for more state oversight so regulators can spot trends, analyze reasons and try to prevent the future failure of insurers. The insurance industry has had two years of underwriting losses exceeding $1 billion each year and several insurance companies have either gone insolvent, required midterm cancelations, are in liquidation or have stopped writing new business since 2021, the governor said in his proclamation calling lawmakers back to the Capitol.

Legislative leaders on Tuesday also reached an agreement to include in the package a measure to require that all condominiums higher than three stories statewide have periodic inspections of their structural integrity.

Signed by Governor DeSantis, enacts a pro-consumer measure to help alleviate rising insurance costs. Increase insurance claims transparency. Crack down on frivolous lawsuits which drive up insurance costs for Floridians.

Gov. Ron DeSantis signing of the legislation on Thursday, said implementation of the bill is the most significant and comprehensive property insurance reforms Florida has seen in decades.

“This package represents the most significant reforms to Florida’s homeowners insurance market in a generation,” said DeSantis.

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