Imagine waking up one day to find your home damaged by a hurricane. You quickly file a claim with your insurance company, believing that you have coverage for such an event. However, your insurer decides to cancel or not renew your policy, leaving you in a financial bind. What do you do? This is a situation that many homeowners might face, especially those living in hurricane-prone areas. Thankfully, new legislation is underway to address this issue.
The New Legislation
Three bills are currently making their way through the House Commerce Committee, all aimed at addressing property insurance issues. The key focus is on allowing unregulated companies to take over policies from the state-run Citizens Property Insurance Corp., extending the time insurers are required to cover a damaged home, and increasing reporting requirements from insurers to state regulators.
HB 1503: Surplus Lines Carriers
With the introduction of HB 1503, unregulated out-of-state insurers, known as surplus lines carriers, will be permitted to take over policies from the Citizens Property Insurance Corp. This applies to secondary homes and is subject to approval by the Office of Insurance Regulation (OIR). These surplus lines companies must have an “A” or better rating from A.M. Best and a risk program managed by a Florida surplus lines broker.
HB 1149: Extending Coverage
Another bill, HB 1149, aims to extend the duration for which insurers are required to cover a home damaged by a hurricane. Presently, insurers cannot cancel or non-renew a home’s coverage that’s been damaged for 90 days following a storm. Under the new bill, insurers will be required to continue coverage until repairs are completed, or until one year after the next renewal date following the damage. Exceptions include nonpayment of premiums or fraudulent claims.
HB 1611: Increased Reporting & Restrictions
The third bill, HB 1611, demands that insurers provide more reports to OIR. Instead of quarterly reports, monthly reports will be required. Additionally, surplus lines carriers will also be restricted in their ability to cancel policies post-hurricane damage.
The new legislation represents a major step forward in protecting homeowners and ensuring that they are not left stranded in the aftermath of a natural disaster. It’s a show of commitment from lawmakers to address the challenges posed by the insurance industry and provide solutions that work for all parties involved.
The bottom line is that homeowners should not have to worry about losing their insurance coverage when they need it the most. With these new bills, they can have peace of mind knowing that their insurance coverage will be there when they need it the most. It’s a significant change that will undeniably make a big difference for homeowners across the state.
While the process is still underway, and these bills have not yet become law, they represent a promising step forward. If passed, they could set a precedent for other states to follow, leading to more robust and reliable insurance coverage for homeowners nationwide.
Indeed, the passage of these bills would be a victory not only for homeowners but also for fairness and accountability in the insurance industry. It’s a clear sign that lawmakers are paying attention to the needs of their constituents and taking decisive action to address them. And that’s something we can all celebrate.
