Florida Senate - 2022 COMMITTEE AMENDMENT
Bill No. SB 2-A
Ì532468DÎ532468
LEGISLATIVE ACTION
Senate . House
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The Committee on Fiscal Policy (Berman) recommended the
following:
1 Senate Amendment (with title amendment)
2
3
4 Delete lines 2748 - 2863
5 and insert:
6 627.7142 Homeowner Claims Bill of Rights; Reduction of
7 Policyholder Rights Due to 2022 Changes in Florida Law.—
8 (1) An insurer issuing a personal lines residential
9 property insurance policy in this state must provide a Homeowner
10 Claims Bill of Rights to a policyholder within 14 days after
11 receiving an initial communication with respect to a claim. The
12 purpose of the bill of rights is to summarize, in simple,
13 nontechnical terms, existing Florida law regarding the rights of
14 a personal lines residential property insurance policyholder who
15 files a claim of loss. The Homeowner Claims Bill of Rights is
16 specific to the claims process and does not represent all of a
17 policyholder’s rights under Florida law regarding the insurance
18 policy. The Homeowner Claims Bill of Rights does not create a
19 civil cause of action by any individual policyholder or class of
20 policyholders against an insurer or insurers. The failure of an
21 insurer to properly deliver the Homeowner Claims Bill of Rights
22 is subject to administrative enforcement by the office but is
23 not admissible as evidence in a civil action against an insurer.
24 The Homeowner Claims Bill of Rights does not enlarge, modify, or
25 contravene statutory requirements, including, but not limited
26 to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074,
27 and does not prohibit an insurer from exercising its right to
28 repair damaged property in compliance with the terms of an
29 applicable policy or ss. 627.7011(6)(e) and 627.702(7). The
30 Homeowner Claims Bill of Rights must state:
31
32 HOMEOWNER CLAIMS
33 BILL OF RIGHTS
34 This Bill of Rights is specific to the claims process
35 and does not represent all of your rights under
36 Florida law regarding your policy. There are also
37 exceptions to the stated timelines when conditions are
38 beyond your insurance company’s control. This document
39 does not create a civil cause of action by an
40 individual policyholder, or a class of policyholders,
41 against an insurer or insurers and does not prohibit
42 an insurer from exercising its right to repair damaged
43 property in compliance with the terms of an applicable
44 policy.
45
46 YOU HAVE THE RIGHT TO:
47 1. Receive from your insurance company an
48 acknowledgment of your reported claim within 7 14 days
49 after the time you communicated the claim.
50 2. Upon written request, receive from your
51 insurance company within 30 days after you have
52 submitted a complete proof-of-loss statement to your
53 insurance company, confirmation that your claim is
54 covered in full, partially covered, or denied, or
55 receive a written statement that your claim is being
56 investigated.
57 3. Receive from your insurance company a copy of
58 any detailed estimate of the amount of the loss within
59 7 days after the estimate is generated by the
60 insurance company’s adjuster.
61 4. Within 60 90 days, subject to any dual
62 interest noted in the policy, receive full settlement
63 payment for your claim or payment of the undisputed
64 portion of your claim, or your insurance company’s
65 denial of your claim.
66 5.4. Receive payment of interest, as provided in
67 s. 627.70131, Florida Statutes, from your insurance
68 company, which begins accruing from the date your
69 claim is filed if your insurance company does not pay
70 full settlement of your initial, reopened, or
71 supplemental claim or the undisputed portion of your
72 claim or does not deny your claim within 60 90 days
73 after your claim is filed. The interest, if
74 applicable, must be paid when your claim or the
75 undisputed portion of your claim is paid.
76 6.5. Free mediation of your disputed claim by the
77 Florida Department of Financial Services, Division of
78 Consumer Services, under most circumstances and
79 subject to certain restrictions.
80 7.6. Neutral evaluation of your disputed claim,
81 if your claim is for damage caused by a sinkhole and
82 is covered by your policy.
83 8.7. Contact the Florida Department of Financial
84 Services, Division of Consumer Services’ toll-free
85 helpline for assistance with any insurance claim or
86 questions pertaining to the handling of your claim.
87 You can reach the Helpline by phone at ...(toll-free
88 phone number)..., or you can seek assistance online at
89 the Florida Department of Financial Services, Division
90 of Consumer Services’ website at ...(website
91 address)....
92
93 YOU ARE ADVISED TO:
94 1. File all claims directly with your insurance
95 company.
96 2. Contact your insurance company before entering
97 into any contract for repairs to confirm any managed
98 repair policy provisions or optional preferred
99 vendors.
100 3. Make and document emergency repairs that are
101 necessary to prevent further damage. Keep the damaged
102 property, if feasible, keep all receipts, and take
103 photographs or video of damage before and after any
104 repairs to provide to your insurer.
105 4. Carefully read any contract that requires you
106 to pay out-of-pocket expenses or a fee that is based
107 on a percentage of the insurance proceeds that you
108 will receive for repairing or replacing your property.
109 5. Confirm that the contractor you choose is
110 licensed to do business in Florida. You can verify a
111 contractor’s license and check to see if there are any
112 complaints against him or her by calling the Florida
113 Department of Business and Professional Regulation.
114 You should also ask the contractor for references from
115 previous work.
116 6. Require all contractors to provide proof of
117 insurance before beginning repairs.
118 7. Take precautions if the damage requires you to
119 leave your home, including securing your property and
120 turning off your gas, water, and electricity, and
121 contacting your insurance company and provide a phone
122 number where you can be reached.
123
124 (2) For personal lines residential property insurance
125 policies entered into or renewed beginning March 1, 2023, and
126 through March 1, 2024, the policyholder must be notified of the
127 Reduction of Policyholder Rights Due to 2022 Changes in Florida
128 Law provisions and must provide written acknowledgement of such
129 notification:
130
131 REDUCTION OF POLICYHOLDER RIGHTS
132 DUE TO 2022 CHANGES IN FLORIDA LAW
133
134 1. As a policyholder, you no longer have the
135 right to assign your claim to a third party, which
136 includes, but is not limited to, a contractor, a water
137 mitigation company, a roofing company, or an emergency
138 services company.
139 2. As a policyholder, you cannot seek or obtain
140 damages for bad faith or extracontractual damages
141 until and unless you prevail in a summary judgment
142 action or obtain a jury verdict followed by obtaining
143 a final judgment.
144 3. As a policyholder, you are not entitled to
145 recover attorney fees even if the insurance company
146 wrongfully denies, delays, or underpays the claim.
147 4. As a policyholder, you may not be able to
148 access the courts for resolution of your dispute,
149 depending upon the language in your insurance policy.
150 Changes in Florida law allow your insurance company to
151 write mandatory arbitration provisions into the
152 insurance policy.
153 5. If you are insured by Citizens Property
154 Insurance Corporation, as a policyholder, you will now
155 have the burden to prove that water damage from a
156 windstorm event is wind damage, rather than the burden
157 resting with your insurance company to prove that
158 flooding caused the damage.
159 6. If you are insured by Citizens Property
160 Insurance Corporation, as a policyholder, you will be
161 required to pay for flood insurance as a condition of
162 having windstorm coverage.
163 7. Recent changes in Florida law allow your
164 insurance company to complete the ENTIRE investigation
165 and payment or denial of a claim without ever visiting
166 the property to inspect the damage in person. This may
167 be performed remotely by using photos and other
168 digital means to estimate the value of the claim.
169 8. As a policyholder, you have 18 months to
170 complete repairs and/or complete necessary
171 replacement(s) to the home, building, structure, and
172 contents and provide changes and/or supplements to the
173 claim, regardless of how your insurance company has
174 acted in response to the claim and regardless of how
175 long it takes the insurance company to investigate,
176 adjust, and make a claims determination on the initial
177 claim.
178 9. Before filing a lawsuit against an insurer,
179 you must file a notice of intent to litigate, which
180 must include extensive documentation supporting
181 coverage and the amount claimed. You are prohibited
182 from using any of the supporting documents as evidence
183 in any proceeding.
184
185 ================= T I T L E A M E N D M E N T ================
186 And the title is amended as follows:
187 Between lines 132 and 133
188 insert:
189 requiring that policyholders of personal lines
190 residential property insurance policies entered into
191 or renewed during a specified period receive and
192 provide written acknowledgment of a specified
193 Reduction of Policyholder Rights Due to 2022 Changes
194 in Florida Law notification;