(LATE FILED)	Amendment
Bill No. 1937

Amendment No. 521911

CHAMBER ACTION
Senate		House
.
.
.

---

---

1	Representative(s) Ross offered the following:
2
3	Amendment (with title amendment)
4	Between lines 918 and 919, insert:
5	Section 8.  Effective October 1, 2005, subsection (1) of
6	section 627.7011, Florida Statutes, is amended, and subsection
7	(4) is added to said section, to read:
8	627.7011  Homeowners' policies; offer of replacement cost
9	coverage and law and ordinance coverage.--
10	(1)  Prior to issuing a homeowner's insurance policy on or
11	after October 1, 2005 June 1, 1994, or prior to the first
12	renewal of a homeowner's insurance policy on or after October 1,
13	2005 June 1, 1994, the insurer must offer each of the following:
14	(a)  A policy or endorsement providing that any loss which
15	is repaired or replaced will be adjusted on the basis of
16	replacement costs not exceeding policy limits as to the
17	dwelling, rather than actual cash value, but not including costs
18	necessary to meet applicable laws and ordinances regulating the
19	construction, use, or repair of any property or requiring the
20	tearing down of any property, including the costs of removing
21	debris.
22	(b)  A policy or endorsement providing that, subject to
23	other policy provisions, any loss which is repaired or replaced
24	at any location will be adjusted on the basis of replacement
25	costs not exceeding policy limits as to the dwelling, rather
26	than actual cash value, and also including costs necessary to
27	meet applicable laws and ordinances regulating the construction,
28	use, or repair of any property or requiring the tearing down of
29	any property, including the costs of removing debris; however,
30	such additional costs necessary to meet applicable laws and
31	ordinances may be limited to either 25 percent or 50 percent of
32	the dwelling limit, as selected by the policyholder, and such
33	coverage shall apply only to repairs of the damaged portion of
34	the structure unless the total damage to the structure exceeds
35	50 percent of the replacement cost of the structure.
36
37	An insurer is not required to make the offers required by this
38	subsection with respect to the issuance or renewal of a
39	homeowner's policy that contains the provisions specified in
40	paragraph (b) for law and ordinance coverage limited to 25
41	percent of the dwelling limit, except that the insurer must
42	offer the law and ordinance coverage limited to 50 percent of
43	the dwelling limit. This subsection does not prohibit the offer
44	of a guaranteed replacement cost policy.
45	(4)  Any homeowner's insurance policy issued or renewed on
46	or after October 1, 2005, must include in bold type no smaller
47	than 18 points the following statement:
48	"LAW AND ORDINANCE COVERAGE IS AN IMPORTANT COVERAGE THAT
49	YOU MAY WISH TO PURCHASE. YOU MAY ALSO NEED TO CONSIDER
50	THE PURCHASE OF FLOOD INSURANCE FROM THE NATIONAL FLOOD
51	INSURANCE PROGRAM. WITHOUT THIS COVERAGE, YOU MAY HAVE
52	UNCOVERED LOSSES. PLEASE DISCUSS THESE COVERAGES WITH
53	YOUR INSURANCE AGENT."
54	The intent of this subsection is to encourage policyholders to
55	purchase sufficient coverage to protect them in case events
56	excluded from the standard homeowners policy, such as law and
57	ordinance enforcement and flood, combine with covered events to
58	produce damage or loss to the insured property. The intent is
59	also to encourage policyholders to discuss these issues with
60	their insurance agent.
61
62	================ T I T L E  A M E N D M E N T =============
63	Remove line 48 and insert:
64	disapproval of certain forms; amending s. 627.7011, F.S.;
65	requiring insurers to offer coverage for additional costs of
66	repair due to laws and ordinances; requiring certain homeowner's
67	insurance policies to contain a specified statement; providing
68	intent; amending s. 627.7015, F.S.;

CODING: Words stricken are deletions; words underlined are additions.