The Impact Of HB305 & SB76
On Florida Policyholders
HB305, SB76, and the related companion bills will not fix Florida’s alleged insurance crisis. The proposed legislation will have no immediate impact on premiums nor will it stop lawsuits against carriers. Instead, these bills give unrestrained power to big insurance companies and will allow them to reduce coverage, underpay claims and avoid any consequences for doing so.
If these bills pass, Florida policyholders will be forced to pay out-of-pocket for covered damage.
Tell Lawmakers To Vote NO
Click here to read revisions and updates on HB305 and SB76
What’s Included In Florida HB305 & SB76?
HB305, SB76, and the companion bills will change the existing Florida Insurance Code and property insurance policies, claims, and litigation. Here how:
- Attorney’s fees will be calculated and awarded based on a scale
- Insurance carriers will use a roof surface reimbursement schedule on roofs that are 10 years old or older
- Claims cannot be filed for damage if it is outside 2 years from the date of loss
Instead of focusing on how carriers investigate and adjust valid claims, HB305 and SB76 give insurance carriers an opportunity to charge homeowners MORE for LESS coverage.
Why Were These Bills Created?
HB305 and SB76 have been introduced as the solution to the Florida insurance crisis. However, in their current form, they do nothing for policyholders. If passed, they will give more power to carriers and make it harder for policyholders to get what is fairly owed.
Insurance carriers, legislators, and lobbyists have shifted the blame for rate hikes to everyone but themselves. Over the past few years, lawyers, contractors, and even policyholders have been blamed for insurance carriers losing “billions” which has forced them to increase policy rates.
The truth is an overwhelming number of catastrophic storms have impacted Florida since 2017. Insurance carriers did not manage these risks (or the costs of claims) effectively which has led to a decline in their profits. Insurance companies routinely deny and delay valid claims to mitigate losses. This forces policyholders to use litigation and other third parties to get what they are owed.
Research on the Florida insurance market has found that high insurance prices are NOT related to lawsuits. Instead, these rate increases have been caused by inadequate regulation, discriminatory and exploitative claim practices, and inadequate consumer protection. Remedies limiting litigation like those listed in HB305 will have little impact on insurance costs.
Will HB305 & SB76 Change Florida Insurance Policies?
HB305 and SB76 add a number of changes to the existing Florida Insurance Code – all of them negatively impact policyholders.
One of the biggest changes for existing Florida homeowners would be the addition of a “roof surface reimbursement schedule”. If this legislation is passed into law, Insurance carriers would then have the ability to deny/limit replacement coverage for roofs that are 10 years or older.
In addition, insurance carriers will now pay roof claims on a payment schedule that are 10+ years. With this change, homeowners wouldn’t get nearly enough to replace their roofs for covered damage
Learn more by clicking here.
In the state of Florida, if a policyholder sues an insurance company for damages related to breach of contract and wins, the insurance carrier is required to pay for the policyholder’s attorney fees. This is known as a fee shift and without it, the policyholder would have to pay attorneys out of pocket to get what they are fairly owned. HB305 and SB76 will change this.
Going forward, attorney fees will be awarded on a payment schedule for property damage claims. All, some, or none of the attorney fees will be covered for policyholders based on the difference between what the carrier originally offered and what they are required to pay.
If passed, HB305 and SB76 will reduce consumers’ abilities to seek recourse and provide a substantial advantage to insurers.
HB305 and SB76 will also change how long a policyholder has to file a claim – reducing it from the existing three-year limit to two. Policyholders will also have to jump over additional hurdles in order to dispute their claims. Policyholders would have to provide notice of a lawsuit at least 60 days in advance, the insurance company also has the right to abate the litigation. The claims investigation and adjustment takes long enough as it is. This will only cause claims to drag out even longer before policyholders can obtain what they are owed.
Lastly, these bills would prevent the filing of a claim, supplemental claim, or reopened claim under a property insurance policy unless notice is provided to the insurer within 2 years of the date of the loss (also reduced from the current 3-year deadline)
Do You Want To Pay MORE For LESS?
Current legislation will allow insurance carriers to use a payment schedule for roofs are 10+ years. With this change, homeowners wouldn’t get nearly enough to replace their roofs for covered damage.
Make Your Voice Heard
Does HB305 & SB76 Help Or Hurt Florida Policyholders?
The changes outlined in SB76 and the companion bills SB686 and HB305 hurt policyholders in a number of ways.
Despite years of legislation being passed to lower homeowners insurance rates, the cost to insure a home in Florida is still rising. In fact, Florida policyholders were promised rates would not increase if the 2019 AOB reform measures were passed, but that didn’t happen and many policyholders still received notice of rate increases.
Despite the promises made by the Florida legislature, these new bills will likely not reduce premiums. Instead, it will force policyholders to continue to pay more for less coverage.
The proposed Roof Reimbursement Schedule and switch to actual cash value for roofs that are 10+ or older essentially almost guarantees Florida policyholders will have to pay out of pocket for damages to get their homes fixed in the event of a catastrophic storm.
The roof of a home is the single biggest element of protection a home has, especially to storms.
Policyholders should not have to foot the bill for insurance company mistakes. With this fee schedule, insurance carriers have the ability to manipulate the system and strategically underpay property damage claims in order to avoid paying attorney fees. This is extremely unfair to policyholders who may not have the financial means to pay out of pocket for legal fees but who have still been disenfranchised by their insurance company.
Wind, hail, and other storm damage can take years to lead to a full roof failure. Often it starts out small but over time, the damage spreads and creates a need for the whole roof to be replaced. In addition, most homeowners are not well versed in roofing or housing materials – thus damage can exist for a long period of time without them knowing. It is only when the roof starts leaking that they are alerted to the issue.
The new two-year time limit proposed by HB305 and SB76 is unfair to Florida homeowners. If the cause of damage is found to be outside of the two-year window, the cost to repair the damage will not be covered under the policy.
Untrained adjusters, managed repair programs, claim delays, and inadequate damage inspections are just a few of the reasons why property damage insurance claims end up in litigation. Intentionally or not, insurance carriers make costly mistakes in the claim process that hurts the policyholder. While insurance companies are legally responsible for paying what is rightfully owed, more often than not, homeowners have to fight to get it.
These bills create more roadblocks for consumers to get fairly compensated, especially when insurance carriers make mistakes that cause the need for litigation.
This Legislation Benefits Insurance Carriers ONLY
The changes HB305 and SB76 will make to the Florida Insurance Code benefits insurance carriers in a number of ways:
- 100% of attorney fees may not be paid by insurance carriers, even if they make a mistake that causes the need for litigation
- Insurance carriers do not have to pay for full roof replacement even if the damage is a covered peril under the policy
- Insurance carriers do not have to pay for covered damage if it is found outside of the 2-year time limit
There are no measures within these bills that protect policyholders from unfair claim practices used by insurance carriers.
Instead, they create more of an opportunity for carriers to underpay and deny valid claims. This means that Florida insurance companies have the opportunity to make more money while policyholders get less coverage.
Will HB305 And SB76 Lower Insurance Rates?
This legislative session is very similar to the one in 2019. Lawmakers have found a scapegoat, created a “crisis,” and made promises to lower rates with the new legislation. HB305 and SB76 will likley not lead to lower insurance rates. Click below to learn more.
What Do Policyholders Think?
Hear from a Florida homeowner on the potential impacts of HB305, SB76 and the proposed legislation happening right now.
Make Your Voice Heard - Take Action NOW
These bills are in the current legislative session and could go into effect this year. Lawmakers need to hear from policyholders NOW on the negative impacts of SB76, HB 305, and related legislation. Connect with your representatives and tell them to VOTE NO to HB305 and SB76. Click below to send a tailored message in less than 60 seconds and make sure your rights are protected.
