Updates To FL Insurance Bills Clear Senate

Two FL insurance bills, HB305 and SB76, were introduced in January of this year to indirectly lower homeowners insurance premiums. Three months later, both bills have made their way through the FL Senate and several last-minute additions have been added. If passed, the changes proposed in HB305 and SB76 would go into effect on July 1, 2021.

Updates To HB305

Read the full bill here. 

Originally HB305 proposed changes to how long a policyholder has to file a claim, time limits on reopening a claim, and changes to attorney fees. These changes are still a part of the revised version of HB305.  A new addition to this bill includes prohibiting contractors, public adjusters, and other advocates from advising policyholders they need to file a claim. An additional change that should concern policyholders is the revision that removes “windstorm” from the bill text. This means the changes proposed will impact all property damage claims. 

Concerns About Updates To HB305

The latest change to HB305 seeks to limit the involvement of policyholder advocates to reduce the number of property damage claims filed. In theory, reducing the number of claims will reduce litigation and therefore lead to a reduction in insurance premiums. We believe the updates made to HB305 will have the opposite effect, and here’s why:

• Insurance carriers are not required to educate policyholders on the potential for damage after a storm or severe weather event
• Insurance carriers are not required to have policyholders get an inspection after severe weather events to catch damage early and prevent costly repairs
• Damage can take years to develop into leaks – by this timeframe to file a claim will have expired
• Policyholders will be forced to pay out of pocket for repairs/replacement to correct property damage

If this change in HB305 passes, Insurance carriers can capitalize on policyholder’s lack of knowledge. They will collect premiums, deny valid claims and force policyholders to pay out of pocket. This will likely lead to more litigation in the long run – thus not solving any of the problems the Florida insurance market is currently facing. 

Updates To SB76

Read the full bill text here. 

SB76 made headlines for potentially allowing carriers to use a “roof reimbursement schedule”, creating an attorney fee schedule, and adjusting property damage claim timelines. While modifications have been made to the roof reimbursement schedule, most of the original text is still intact. A new revision will allow insurance carriers to respond to litigation notices with a mediation or appraisal demand. This is especially concerning for policyholders considering the out-of-pocket costs associated with this demand ($2,000 – $6,000 on average) and the lack of appraisal clauses in most policies. 

The overall goal of SB76 is to reduce litigation as a means to reduce policyholder premiums, but it will likely have the opposite effect if the bill passes. 

• An appraisal is not appropriate in the event of full claim denial and will likely cause additional litigation
• Most insurance policies do not have an appraisal clause – this will likely cause the need for litigation should the carrier impose this rule 
• If a FL insurance policy does include an appraisal clause, the bill does not specify which provision applies. This will cause additional litigation to clarify. 
• The out of pocket costs incurred for policyholders will likely cause additional litigation 

Other changes to SB76 include how/when a policyholder can file a lawsuit against their carrier. These updates are very cumbersome, especially for the average insured who isn’t either an attorney or an insurance professional. This means that an insured will need to hire an attorney before they normally would have just to handle the pre-suit notice, especially with all of the particulars that are required.

If passed, SB76 will significantly limit a policyholder’s ability to seek fair claim payment while allowing insurance carriers to capitalize on technicalities to underpay and deny valid claims. 

Tell Lawmakers To VOTE NO

If passed, HB305 and SB76 will go into effect this year. Lawmakers need to hear from policyholders NOW on the negative impacts of this legislation. Click here to connect with Florida lawmakers and make sure your rights are protected. You’ll be able to send a tailored message in less than 60 seconds to your elected officials.