Bill Text: FL S1652 | 2018 | Regular Session | Introduced
Bill Title: Property Insurance
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2018-03-10 - Died in Banking and Insurance [S1652 Detail]
Download: Florida-2018-S1652-Introduced.html
Florida Senate - 2018 SB 1652 By Senator Lee 20-01641B-18 20181652__ 1 A bill to be entitled 2 An act relating to property insurance; creating s. 3 627.70191, F.S.; providing applicability; prohibiting 4 property insurers who fail to make inspections within 5 a specified timeframe from denying or limiting 6 payments for certain hurricane-related claims under 7 certain circumstances; specifying requirements 8 property insurers must meet before they may require 9 policyholders to submit proof of loss, under certain 10 circumstances; amending s. 627.7073, F.S.; requiring 11 real property owners and lessors to disclose certain 12 sinkhole reports and certifications in lease or lease 13 purchase agreements with tenants or tenant-buyers of 14 the real properties; providing applicability; amending 15 s. 627.7142, F.S.; revising circumstances under which 16 personal lines residential property insurers must 17 provide policyholders with the Homeowner Claims Bill 18 of Rights; requiring such insurers to include a 19 specified addendum under certain circumstances; 20 specifying the rights, responsibilities, and notices 21 the addendum must contain; revising construction; 22 providing an effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1. Section 627.70191, Florida Statutes, is created 27 to read: 28 627.70191 Insurer restrictions relating to certain 29 hurricanes.— 30 (1) This section applies to a claim for a loss that occurs 31 during a hurricane as defined in s. 627.4025(2) for which the 32 Governor declares a state of emergency by executive order or 33 proclamation under s. 252.36 which identifies the state of 34 emergency as being due to a catastrophic disaster. 35 (2) If an insurer does not inspect the policyholder’s 36 premises within 45 days after the insurer receives notice of the 37 claim in accordance with the terms of the policy, the insurer 38 may not deny any covered claim or limit any payment based on 39 repairs made or ordered by the policyholder to protect the 40 property from further damage or to otherwise mitigate the loss. 41 (3) An insurer may not require a policyholder to submit 42 proof of loss unless the insurer: 43 (a) Provides the policyholder with written notice of the 44 requirement along with a form for specifying proof of loss; and 45 (b) Allows the policyholder at least 60 days after 46 receiving the notice and form to complete and return the form to 47 the insurer. 48 Section 2. Paragraph (d) is added to subsection (2) of 49 section 627.7073, Florida Statutes, to read: 50 627.7073 Sinkhole reports.— 51 (2) An insurer that has paid a claim for a sinkhole loss 52 shall file a copy of the report and certification, prepared 53 pursuant to subsection (1), including the legal description of 54 the real property and the name of the property owner, the 55 neutral evaluator’s report, if any, which indicates that 56 sinkhole activity caused the damage claimed, a copy of the 57 certification indicating that stabilization has been completed, 58 if applicable, and the amount of the payment, with the county 59 clerk of court, who shall record the report and certification. 60 The insurer shall bear the cost of filing and recording one or 61 more reports and certifications. There shall be no cause of 62 action or liability against an insurer for compliance with this 63 section. 64 (d) An owner or lessor of real property upon which a 65 sinkhole claim has been made by the owner or lessor and paid by 66 the insurer shall disclose the sinkhole report and certification 67 in the lease or lease-purchase agreement with the tenant or 68 tenant-buyer of the real property. This paragraph does not apply 69 to a nonresidential tenancy under part I of chapter 83 or a 70 transient occupancy as defined in s. 83.43. 71 Section 3. Section 627.7142, Florida Statutes, is amended 72 to read: 73 627.7142 Homeowner Claims Bill of Rights.—An insurer 74 issuing a personal lines residential property insurance policy 75 in this state must provide a Homeowner Claims Bill of Rights to 76 a policyholder within 14 days after receiving an initial 77 communication with respect to a claim, unless the claim follows78an event that is the subject of a declaration of a state of79emergency by the Governor. If the claim is for a loss that 80 occurred during a hurricane as defined in s. 627.4025(2) for 81 which the Governor declared a state of emergency by executive 82 order or proclamation under s. 252.36 which identified the state 83 of emergency as being due to a catastrophic disaster, the 84 Homeowner Claims Bill of Rights must also include the addendum 85 specified in subsection (2). The purpose of the bill of rights 86 is to summarize, in simple, nontechnical terms, existing Florida 87 law regarding the rights of a personal lines residential 88 property insurance policyholder who files a claim of loss. The 89 Homeowner Claims Bill of Rights is specific to the claims 90 process and does not represent all of a policyholder’s rights 91 under Florida law regarding the insurance policy. The Homeowner 92 Claims Bill of Rights or the addendum specified in subsection 93 (2) does not create a civil cause of action by any individual 94 policyholder or class of policyholders against an insurer or 95 insurers. The failure of an insurer to properly deliver the 96 Homeowner Claims Bill of Rights or the addendum specified in 97 subsection (2) is subject to administrative enforcement by the 98 office but is not admissible as evidence in a civil action 99 against an insurer. The Homeowner Claims Bill of Rights or the 100 addendum specified in subsection (2) does not enlarge, modify, 101 or contravene statutory requirements, including, but not limited 102 to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, 103 and does not prohibit an insurer from exercising its right to 104 repair damaged property in compliance with the terms of an 105 applicable policy or ss. 627.7011(5)(e) and 627.702(7). 106 (1) The Homeowner Claims Bill of Rights must state: 107 108 HOMEOWNER CLAIMS 109 BILL OF RIGHTS 110 This Bill of Rights is specific to the claims process 111 and does not represent all of your rights under 112 Florida law regarding your policy. There are also 113 exceptions to the stated timelines when conditions are 114 beyond your insurance company’s control. This document 115 does not create a civil cause of action by an 116 individual policyholder, or a class of policyholders, 117 against an insurer or insurers and does not prohibit 118 an insurer from exercising its right to repair damaged 119 property in compliance with the terms of an applicable 120 policy. 121 122 YOU HAVE THE RIGHT TO: 123 1. Receive from your insurance company an 124 acknowledgment of your reported claim within 14 days 125 after the time you communicated the claim. 126 2. Upon written request, receive from your 127 insurance company within 30 days after you have 128 submitted a complete proof-of-loss statement to your 129 insurance company, confirmation that your claim is 130 covered in full, partially covered, or denied, or 131 receive a written statement that your claim is being 132 investigated. 133 3. Within 90 days, subject to any dual interest 134 noted in the policy, receive full settlement payment 135 for your claim or payment of the undisputed portion of 136 your claim, or your insurance company’s denial of your 137 claim. 138 4. Free mediation of your disputed claim by the 139 Florida Department of Financial Services, Division of 140 Consumer Services, under most circumstances and 141 subject to certain restrictions. 142 5. Neutral evaluation of your disputed claim, if 143 your claim is for damage caused by a sinkhole and is 144 covered by your policy. 145 6. Contact the Florida Department of Financial 146 Services, Division of Consumer Services’ toll-free 147 helpline for assistance with any insurance claim or 148 questions pertaining to the handling of your claim. 149 You can reach the Helpline by phone at...(toll-free 150 phone number)..., or you can seek assistance online at 151 the Florida Department of Financial Services, Division 152 of Consumer Services’ website at...(website 153 address).... 154 155 YOU ARE ADVISED TO: 156 1. Contact your insurance company before entering 157 into any contract for repairs to confirm any managed 158 repair policy provisions or optional preferred 159 vendors. 160 2. Make and document emergency repairs that are 161 necessary to prevent further damage. Keep the damaged 162 property, if feasible, keep all receipts, and take 163 photographs of damage before and after any repairs. 164 3. Carefully read any contract that requires you 165 to pay out-of-pocket expenses or a fee that is based 166 on a percentage of the insurance proceeds that you 167 will receive for repairing or replacing your property. 168 4. Confirm that the contractor you choose is 169 licensed to do business in Florida. You can verify a 170 contractor’s license and check to see if there are any 171 complaints against him or her by calling the Florida 172 Department of Business and Professional Regulation. 173 You should also ask the contractor for references from 174 previous work. 175 5. Require all contractors to provide proof of 176 insurance before beginning repairs. 177 6. Take precautions if the damage requires you to 178 leave your home, including securing your property and 179 turning off your gas, water, and electricity, and 180 contacting your insurance company and provide a phone 181 number where you can be reached. 182 183 (2) The Homeowner Claims Bill of Rights addendum must 184 state: 185 HOMEOWNER CLAIMS 186 BILL OF RIGHTS ADDENDUM 187 188 ADDITIONAL RIGHTS, RESPONSIBILITIES, AND NOTICES 189 RELATING TO HURRICANES, NATURAL DISASTERS, AND OTHER 190 EMERGENCIES 191 1. If your dwelling or property was damaged as a 192 result of the hurricane or disaster, your insurance 193 company may not cancel or nonrenew your policy for a 194 period of 90 days after your dwelling or property has 195 been repaired. However, this does not apply in cases 196 of nonpayment of premium or material misstatement or 197 fraud related to the claim, if your insurance company 198 determines that you have unreasonably caused a delay 199 in repair to your dwelling, or if the insurance 200 company has already paid the limit of your policy. 201 2. If a cancellation or nonrenewal of your policy 202 takes effect during a hurricane, the effective date of 203 the cancellation or nonrenewal is extended until 72 204 hours following the termination of the last hurricane 205 watch or hurricane warning issued for any part of 206 Florida by the National Hurricane Center of the 207 National Weather Service. Your insurance company may 208 collect a premium for this extended period. This 209 extension does not apply to certain replacement 210 coverages. 211 3. You must make any claim, supplemental claim, 212 or reopened claim under this policy for loss or damage 213 caused by windstorm or hurricane under the policy 214 within 3 years after the hurricane first made landfall 215 or the windstorm caused the covered damage. 216 4. Within 45 days after your insurance company 217 receives notice of your claim for damage caused by a 218 hurricane or other natural disaster, your insurance 219 company must inspect your premises. If your insurance 220 company fails to do so, it may not deny any covered 221 claim or limit any payment based on repairs you make 222 or order to protect your property from further damage 223 or to mitigate the loss. 224 5. Your insurance company may not require you to 225 submit proof of loss for your claim for damage caused 226 by a hurricane or other natural disaster unless the 227 insurance company provides you with a written notice 228 of the requirement along with a proof-of-loss form, 229 and allows you at least 60 days after receiving the 230 notice and form to complete and return the form to the 231 insurance company. 232 6. In the event of a catastrophe or emergency, 233 the Florida Department of Financial Services is 234 authorized to issue emergency licenses to adjusters 235 who meet certain qualifications. Your claims, losses, 236 or damages may be adjusted by such catastrophe or 237 emergency adjusters. 238 7. The Florida Office of Insurance Regulation has 239 issued an emergency order that may contain 240 standardized requirements applying to your insurance 241 company as a result of the hurricane or natural 242 disaster. You may obtain a copy of the order by 243 contacting the office at ...(toll-free telephone 244 number)... or accessing ...(website address).... 245 Section 4. This act shall take effect July 1, 2018.