Florida Senate - 2016                                     SB 382
       
       
        
       By Senator Bullard
       
       
       
       
       
       39-00370-16                                            2016382__
    1                        A bill to be entitled                      
    2         An act relating to residential windstorm insurance
    3         coverage; amending s. 627.712, F.S.; deleting the
    4         requirement that a mortgageholder or lienholder
    5         approve a policyholder’s decision to exclude windstorm
    6         or hurricane coverage from a property insurance
    7         policy; making technical changes; providing an
    8         effective date.
    9          
   10  Be It Enacted by the Legislature of the State of Florida:
   11  
   12         Section 1. Section 627.712, Florida Statutes, is amended to
   13  read:
   14         627.712 Residential windstorm coverage required;
   15  availability of exclusions for windstorm or contents.—
   16         (1) An insurer issuing a residential property insurance
   17  policy must provide windstorm coverage. Except as provided in
   18  paragraph (2)(b) (2)(c), this section does not apply to risks
   19  that are eligible for wind-only coverage from Citizens Property
   20  Insurance Corporation under s. 627.351(6), and risks that are
   21  not eligible for coverage from Citizens Property Insurance
   22  Corporation under s. 627.351(6)(a)3. or 5. A risk ineligible for
   23  coverage by the corporation under s. 627.351(6)(a)3. or 5. is
   24  exempt from this section only if the risk is located within the
   25  boundaries of the coastal account of the corporation.
   26         (2) A property insurer must make available, at the option
   27  of the policyholder, an exclusion of windstorm coverage.
   28         (a) The coverage may be excluded only if the policyholder:
   29         1. When the policyholder Is a natural person who, the
   30  policyholder personally writes and provides to the insurer the
   31  following statement, which must be in the policyholder’s his or
   32  her own handwriting and signs his or her name, which must also
   33  be signed and dated by him or her and every other named insured
   34  on the policy, and dated: “I do not want the insurance on my
   35  (home/mobile home/condominium unit) to pay for damage from
   36  windstorms. I will pay those costs. My insurance will not.”
   37         2. When the policyholder Is other than a natural person
   38  which, the policyholder provides to the insurer on the
   39  policyholder’s letterhead the following statement, which that
   40  must be signed and dated by the policyholder’s authorized
   41  representative and dated: “...(Name of entity)... does not want
   42  the insurance on its ...(type of structure)... to pay for damage
   43  from windstorms. ...(Name of entity)... will be responsible for
   44  these costs. ...(Name of entity’s)... insurance will not.”
   45         (b) If the structure insured by the policy is subject to a
   46  mortgage or lien, the policyholder must provide the insurer with
   47  a written statement from the mortgageholder or lienholder
   48  indicating that the mortgageholder or lienholder approves the
   49  policyholder electing to exclude windstorm coverage or hurricane
   50  coverage from his or her or its property insurance policy.
   51         (c) An insurer nonrenewing a policy and issuing a
   52  replacement policy, or issuing a new policy, which that does not
   53  provide wind coverage must shall provide a notice to the
   54  mortgageholder or lienholder indicating the policyholder has
   55  elected coverage that does not cover wind.
   56         (3) An insurer issuing a residential property insurance
   57  policy, except for a condominium unit owner policy or a tenant
   58  policy, must make available, at the option of the policyholder,
   59  an exclusion of coverage for the contents. The coverage may be
   60  excluded only if the policyholder personally writes and provides
   61  to the insurer the following statement, which must be in the
   62  policyholder’s his or her own handwriting and signs his or her
   63  signature, which must also be signed and dated by him or her and
   64  every other named insured on the policy, and dated: “I do not
   65  want the insurance on my (home/mobile home) to pay for the costs
   66  to repair or replace any contents that are damaged. I will pay
   67  those costs. My insurance will not.”
   68         (4) An insurer shall keep the original copy of a signed
   69  statement required by this section, electronically or otherwise,
   70  and provide a copy to the policyholder providing the signed
   71  statement. A signed statement meeting the requirements of this
   72  section creates a presumption that there was an informed,
   73  knowing rejection of coverage.
   74         (5) The exclusions authorized by this section apply for the
   75  term of the policy and for each renewal thereafter. Changes to
   76  the exclusions authorized by this section may be implemented
   77  only as of the date of renewal.
   78         (6) The commission shall adopt rules providing appropriate
   79  alternative methods for providing the statements required by
   80  this section for policyholders who have a handicapping or
   81  disabling condition that prevents them from providing a
   82  handwritten statement.
   83         Section 2. This act shall take effect July 1, 2016.