PROPERTY INSURANCE REFORM

he Florida Legislature made another attempt to address Florida’s property insurance crisis during a December special session. Many constituents have been asking important questions about this:

“What does this mean for homeowners? Should we expect insurance premium relief? And if so, by what percentage?”

The bill’s sponsor stated this legislation was meant to stabilize the market, and “hopefully in the future there may be a rate reduction.” I don’t believe this was consumer-friendly. Many colleagues proposed amendments specifically addressing rate reduction and freezes; however, these amendments failed.

SB2-A, Property Insurance:

▸ Creates the Florida Optional Reinsurance Assistance program

▸ Prohibits assignment of benefits, curtailing fraud

By State Representative Robin Bartleman

T▸ Eliminates “one-way attorney fees” - you may be responsible for all your attorney fees.

▸ Allows insurance companies to offer the option to buy a policy with a binding arbitration provision for a rate reduction. I encourage all to research this to ensure you are making an informed decision. The arbitrator’s decision cannot be appealed, limiting your access to the courts. You must consider hiring an attorney and experts to present your case; insurance companies have many on standby and you’ll not be reimbursed for those fees.

▸ Requires evidence of a breach of the insurance contract before a homeowner may bring a bad faith action against an insurance company

▸ Reduces a homeowner’s time to report a claim to an insurance company and reduces the claim processing time for insurance companies

▸ Property insurers may be subject to an additional market conduct examination by the Office of Insurance Regulation post-hurricane.

▸ Depopulates Citizens - When it’s time for you to renew your policy, if a private insurance company offers you a similar policy costing up to 20% more- you MUST take this policy and pay the new premium; you’ll be removed from Citizens.

▸ Citizens policyholders will be required to purchase flood insurance separately We’ll revisit insurance during regular session where I hope we create a bill that will continue to stabilize the market, protect consumers and reduce premiums. I welcome ideas and suggestions.

▸ As always, I’m here to help. Please reach out anytime at (954) 668-3662 or robin. bartleman@myfloridahouse.gov.