Florida Senate - 2015                                     SB 354
       
       
        
       By Senator Bullard
       
       
       
       
       
       39-00173-15                                            2015354__
    1                        A bill to be entitled                      
    2         An act relating to windstorm insurance coverage;
    3         amending s. 627.712, F.S.; deleting the requirement
    4         that a mortgageholder or lienholder approve a
    5         policyholder’s decision to exclude windstorm or
    6         hurricane coverage from a property insurance policy;
    7         making technical changes; providing an effective date.
    8          
    9  Be It Enacted by the Legislature of the State of Florida:
   10  
   11         Section 1. Section 627.712, Florida Statutes, is amended to
   12  read:
   13         627.712 Residential windstorm coverage required;
   14  availability of exclusions for windstorm or contents.—
   15         (1) An insurer issuing a residential property insurance
   16  policy must provide windstorm coverage. Except as provided in
   17  paragraph (2)(b) (2)(c), this section does not apply to risks
   18  that are eligible for wind-only coverage from Citizens Property
   19  Insurance Corporation under s. 627.351(6), and risks that are
   20  not eligible for coverage from Citizens Property Insurance
   21  Corporation under s. 627.351(6)(a)3. or 5. A risk ineligible for
   22  coverage by the corporation under s. 627.351(6)(a)3. or 5. is
   23  exempt from this section only if the risk is located within the
   24  boundaries of the coastal account of the corporation.
   25         (2) A property insurer must make available, at the option
   26  of the policyholder, an exclusion of windstorm coverage.
   27         (a) The coverage may be excluded only if the policyholder:
   28         1. When the policyholder Is a natural person who, the
   29  policyholder personally writes and provides to the insurer the
   30  following statement, which must be in the policyholder’s his or
   31  her own handwriting and signs his or her name, which must also
   32  be signed and dated by him or her and every other named insured
   33  on the policy, and dated: “I do not want the insurance on my
   34  (home/mobile home/condominium unit) to pay for damage from
   35  windstorms. I will pay those costs. My insurance will not.”
   36         2. When the policyholder Is other than a natural person
   37  which, the policyholder provides to the insurer on the
   38  policyholder’s letterhead the following statement, which that
   39  must be signed and dated by the policyholder’s authorized
   40  representative and dated: “...(Name of entity)... does not want
   41  the insurance on its ...(type of structure)... to pay for damage
   42  from windstorms. ...(Name of entity)... will be responsible for
   43  these costs. ...(Name of entity’s)... insurance will not.”
   44         (b) If the structure insured by the policy is subject to a
   45  mortgage or lien, the policyholder must provide the insurer with
   46  a written statement from the mortgageholder or lienholder
   47  indicating that the mortgageholder or lienholder approves the
   48  policyholder electing to exclude windstorm coverage or hurricane
   49  coverage from his or her or its property insurance policy.
   50         (c) An insurer nonrenewing a policy and issuing a
   51  replacement policy, or issuing a new policy, which that does not
   52  provide wind coverage must shall provide a notice to the
   53  mortgageholder or lienholder indicating the policyholder has
   54  elected coverage that does not cover wind.
   55         (3) An insurer issuing a residential property insurance
   56  policy, except for a condominium unit owner policy or a tenant
   57  policy, must make available, at the option of the policyholder,
   58  an exclusion of coverage for the contents. The coverage may be
   59  excluded only if the policyholder personally writes and provides
   60  to the insurer the following statement, which must be in the
   61  policyholder’s his or her own handwriting and signs his or her
   62  signature, which must also be signed and dated by him or her and
   63  every other named insured on the policy, and dated: “I do not
   64  want the insurance on my (home/mobile home) to pay for the costs
   65  to repair or replace any contents that are damaged. I will pay
   66  those costs. My insurance will not.”
   67         (4) An insurer shall keep the original copy of a signed
   68  statement required by this section, electronically or otherwise,
   69  and provide a copy to the policyholder providing the signed
   70  statement. A signed statement meeting the requirements of this
   71  section creates a presumption that there was an informed,
   72  knowing rejection of coverage.
   73         (5) The exclusions authorized by this section apply for the
   74  term of the policy and for each renewal thereafter. Changes to
   75  the exclusions authorized by this section may be implemented
   76  only as of the date of renewal.
   77         (6) The commission shall adopt rules providing appropriate
   78  alternative methods for providing the statements required by
   79  this section for policyholders who have a handicapping or
   80  disabling condition that prevents them from providing a
   81  handwritten statement.
   82         Section 2. This act shall take effect July 1, 2015.