Florida Senate - 2020 SENATOR AMENDMENT Bill No. CS for SB 1492 Ì755792JÎ755792 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— Senator Flores moved the following: 1 Senate Amendment (with title amendment) 2 3 Delete lines 473 - 488 4 and insert: 5 Section 18. Paragraph (a) of subsection (3) of section 6 627.7011, Florida Statutes, is amended to read: 7 627.7011 Homeowners’ policies; offer of replacement cost 8 coverage and law and ordinance coverage.— 9 (3) In the event of a loss for which a dwelling or personal 10 property is insured on the basis of replacement costs: 11 (a) For a dwelling, the insurer must initially pay at least 12 the actual cash value of the insured loss, less any applicable 13 deductible. The insurer shall pay any remaining amounts 14 necessary to perform such repairs as work is performed and 15 expenses are incurred. If a total loss of a dwelling occurs, the 16 insurer shall pay the replacement cost coverage without 17 reservation or holdback of any depreciation in value, pursuant 18 to s. 627.702. An insurer that requires a policyholder to use a 19 specific contractor selected by the insurer must ensure, and 20 must document evidence within the claim file, that the insurer’s 21 selected contractor has complied with part I of chapter 489, 22 part IX of chapter 626, and any other applicable Florida statute 23 when establishing the appropriate construction methodology, 24 scope of repairs, and construction processes. If an insurer 25 fails to ensure the contractor’s compliance in accordance with 26 this paragraph, the office shall impose upon the insurer an 27 administrative penalty of $5,000 for a first offense and an 28 administrative penalty of up to $10,000 for each subsequent 29 offense. If an insurer’s selected contractor violates part I of 30 chapter 489 or part IX of chapter 626, the insured is relieved 31 of his or her obligation to complete the repairs with the 32 contractor and the insurer must pay the insured the remaining 33 amounts necessary to complete the covered repairs. 34 35 ================= T I T L E A M E N D M E N T ================ 36 And the title is amended as follows: 37 Delete lines 61 - 65 38 and insert: 39 amending s. 627.7011, F.S.; requiring an insurer 40 issuing homeowners’ insurance with certain coverage 41 which requires a policyholder to use the insurer’s 42 selected contractor to meet certain requirements 43 relating to the contractor; requiring the office to 44 impose specified penalties for violations; providing 45 that a policyholder is relieved of a certain 46 obligation and the insurer must pay certain amounts if 47 the insurer’s selected contractor violates certain 48 provisions; amending s. 627.70131, F.S.; providing