Florida Senate - 2025 SB 328
By Senator Garcia
36-00964-25 2025328__
1 A bill to be entitled
2 An act relating to applicability of valued policy law
3 to surplus lines insurers; amending s. 626.926, F.S.;
4 requiring surplus lines insurers to comply with the
5 valued policy law under certain circumstances;
6 amending s. 627.702, F.S.; defining the term “insurer”
7 to include surplus lines insurers for the purpose of
8 the valued policy law; amending ss. 627.7011 and
9 627.7142, F.S.; conforming cross-references; providing
10 an effective date.
11
12 Be It Enacted by the Legislature of the State of Florida:
13
14 Section 1. Present subsection (2) of section 626.926,
15 Florida Statutes, is redesignated as subsection (3), and a new
16 subsection (2) is added to that section, to read:
17 626.926 Liability of insurer as to losses and unearned
18 premiums; valued policy law.—
19 (2) Each unauthorized insurer assuming a surplus lines
20 direct risk under this Surplus Lines Law and issuing property or
21 casualty insurance coverage shall comply with the valued policy
22 law, as applicable, under s. 627.702.
23 Section 2. Section 627.702, Florida Statutes, is amended to
24 read:
25 627.702 Valued policy law.—
26 (1) Beginning July 1, 2025, as used in this section, the
27 term “insurer” includes an unauthorized insurer assuming a
28 surplus lines direct risk under the Surplus Lines Law, ss.
29 626.913-626.937, and issuing property or casualty insurance
30 coverage.
31 (2)(a)(1)(a) In the event of the total loss of any
32 building, structure, mobile home as defined in s. 320.01(2), or
33 manufactured building as defined in s. 553.36(13), located in
34 this state and insured by any insurer as to a covered peril, in
35 the absence of any change increasing the risk without the
36 insurer’s consent and in the absence of fraudulent or criminal
37 fault on the part of the insured or one acting in her or his
38 behalf, the insurer’s liability under the policy for such total
39 loss, if caused by a covered peril, shall be in the amount of
40 money for which such property was so insured as specified in the
41 policy and for which a premium has been charged and paid.
42 (b) The intent of this subsection is not to deprive an
43 insurer of any proper defense under the policy, to create new or
44 additional coverage under the policy, or to require an insurer
45 to pay for a loss caused by a peril other than the covered
46 peril. In furtherance of such legislative intent, when a loss
47 was caused in part by a covered peril and in part by a
48 noncovered peril, paragraph (a) does not apply. In such
49 circumstances, the insurer’s liability under this section shall
50 be limited to the amount of the loss caused by the covered
51 peril. However, if the covered perils alone would have caused
52 the total loss, paragraph (a) shall apply. The insurer is never
53 liable for more than the amount necessary to repair, rebuild, or
54 replace the structure following the total loss, after
55 considering all other benefits actually paid for the total loss.
56 (c) It is the intent of the Legislature that the amendment
57 to this section shall not be applied retroactively and shall
58 apply only to claims filed after the effective date of such
59 amendment.
60 (3)(2) In the case of a partial loss by fire or lightning
61 of any such property, the insurer’s liability, if any, under the
62 policy shall be for the actual amount of such loss but may shall
63 not exceed the amount of insurance specified in the policy as to
64 such property and such peril.
65 (4)(3) The provisions of Subsections (2) and (3) (1) and
66 (2) do not apply when:
67 (a) Insurance policies are issued or renewed by more than
68 one company insuring the same building, structure, mobile home,
69 or manufactured building, and the existence of such additional
70 insurance is not disclosed by the insured to all insurers
71 issuing such policies;
72 (b) Two or more buildings, structures, mobile homes, or
73 manufactured buildings are insured under a blanket form for a
74 single amount of insurance; or
75 (c) The completed value of a building, structure, mobile
76 home, or manufactured building is insured under a builder’s risk
77 policy.
78 (5)(4) The amount of any loss referred to in subsection (1)
79 or subsection (2) or subsection (3) is shall be subject to any
80 coinsurance clause contained in the policy pursuant to s.
81 627.701.
82 (6)(5) This section does not apply as to personal property
83 or any interest therein, except with respect to mobile homes as
84 defined in s. 320.01(2) or manufactured buildings as defined in
85 s. 553.36(13). Nor does this section apply to coverage of an
86 appurtenant structure or other structure or any coverage or
87 claim in which the dollar amount of coverage available as to the
88 structure involved is not directly stated in the policy as a
89 dollar amount specifically applicable to that particular
90 structure.
91 (7)(6) With regard to mobile homes included in subsection
92 (2) (1), any total loss shall be adjusted on the basis of the
93 amount of money for which such property was insured as specified
94 in the policy, whether on an actual cash value basis,
95 replacement cost basis, or stated amount, and for which a
96 premium has been charged and paid only if the insured has
97 elected to purchase such coverage at the inception of the
98 policy. However, when coverage is written for a mobile home on
99 any basis other than stated value, a complete disclosure of the
100 relative cost between that policy and the stated value policy
101 shall be made to the insured on a form and in a format approved
102 by the office. Such forms shall disclose and describe the
103 differences between the types of policies and shall be signed by
104 the insured. Copies shall be maintained in the insurer’s file,
105 and a copy shall be made available to the insured. Each insurer
106 licensed to write insurance covering mobile homes shall make
107 such stated value coverage available at the option of the
108 insured.
109 (8)(7) This section does not prohibit Nothing herein shall
110 be construed as prohibiting an insurer from repairing or
111 replacing damaged property at its own expense and without
112 contribution on the part of the insured except, as provided in
113 subsection (7) (6), when an insured has elected to purchase
114 stated value coverage. Such repair or replacement of damaged
115 property shall be in lieu of any liability created by subsection
116 (2) (1); and any insurer so repairing or replacing shall have no
117 liability pursuant to subsection (2) (1), provided such insurer
118 returns to the named insured a portion of the premium, for all
119 policy terms during which the policy limits were the same as
120 those in effect on the date on which the loss occurred, equal to
121 that portion of the premium paid for limits of insurance on the
122 structure in excess of the cost of replacement.
123 (9)(8) Any property insurer may, by an appropriate rider or
124 endorsement or otherwise, provide insurance indemnifying the
125 insured for the difference between the insurable value of the
126 insured property at the time any loss or damage occurs, and the
127 amount actually expended to repair, rebuild, or replace within
128 this state, with new materials of like size, kind, and quality,
129 such property as has been damaged or destroyed.
130 Section 3. Paragraph (e) of subsection (6) of section
131 627.7011, Florida Statutes, is amended to read:
132 627.7011 Homeowners’ policies; offer of replacement cost
133 coverage and law and ordinance coverage.—
134 (6) This section does not:
135 (e) Prohibit an insurer from exercising its right to repair
136 damaged property in compliance with its policy and s. 627.702(8)
137 s. 627.702(7).
138 Section 4. Section 627.7142, Florida Statutes, is amended
139 to read:
140 627.7142 Homeowner Claims Bill of Rights.—An insurer
141 issuing a personal lines residential property insurance policy
142 in this state must provide a Homeowner Claims Bill of Rights to
143 a policyholder within 14 days after receiving an initial
144 communication with respect to a claim. The purpose of the bill
145 of rights is to summarize, in simple, nontechnical terms,
146 existing Florida law regarding the rights of a personal lines
147 residential property insurance policyholder who files a claim of
148 loss. The Homeowner Claims Bill of Rights is specific to the
149 claims process and does not represent all of a policyholder’s
150 rights under Florida law regarding the insurance policy. The
151 Homeowner Claims Bill of Rights does not create a civil cause of
152 action by any individual policyholder or class of policyholders
153 against an insurer or insurers. The failure of an insurer to
154 properly deliver the Homeowner Claims Bill of Rights is subject
155 to administrative enforcement by the office but is not
156 admissible as evidence in a civil action against an insurer. The
157 Homeowner Claims Bill of Rights does not enlarge, modify, or
158 contravene statutory requirements, including, but not limited
159 to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074,
160 and does not prohibit an insurer from exercising its right to
161 repair damaged property in compliance with the terms of an
162 applicable policy or ss. 627.7011(6)(e) and 627.702(8)
163 627.702(7). The Homeowner Claims Bill of Rights must state:
164 HOMEOWNER CLAIMS
165 BILL OF RIGHTS
166 This Bill of Rights is specific to the claims process and does
167 not represent all of your rights under Florida law regarding
168 your policy. There are also exceptions to the stated timelines
169 when conditions are beyond your insurance company’s control.
170 This document does not create a civil cause of action by an
171 individual policyholder, or a class of policyholders, against an
172 insurer or insurers and does not prohibit an insurer from
173 exercising its right to repair damaged property in compliance
174 with the terms of an applicable policy.
175 YOU HAVE THE RIGHT TO:
176 1. Receive from your insurance company an acknowledgment of
177 your reported claim within 7 days after the time you
178 communicated the claim.
179 2. Upon written request, receive from your insurance
180 company within 30 days after you have submitted a complete
181 proof-of-loss statement to your insurance company,
182 confirmation that your claim is covered in full, partially
183 covered, or denied, or receive a written statement that
184 your claim is being investigated.
185 3. Receive from your insurance company a copy of any
186 detailed estimate of the amount of the loss within 7 days
187 after the estimate is generated by the insurance company’s
188 adjuster.
189 4. Within 60 days, subject to any dual interest noted in
190 the policy, receive full settlement payment for your claim
191 or payment of the undisputed portion of your claim, or your
192 insurance company’s denial of your claim.
193 5. Receive payment of interest, as provided in s.
194 627.70131, Florida Statutes, from your insurance company,
195 which begins accruing from the date your claim is filed if
196 your insurance company does not pay full settlement of your
197 initial, reopened, or supplemental claim or the undisputed
198 portion of your claim or does not deny your claim within 60
199 days after your claim is filed. The interest, if
200 applicable, must be paid when your claim or the undisputed
201 portion of your claim is paid.
202 6. Free mediation of your disputed claim by the Florida
203 Department of Financial Services, Division of Consumer
204 Services, under most circumstances and subject to certain
205 restrictions.
206 7. Neutral evaluation of your disputed claim, if your claim
207 is for damage caused by a sinkhole and is covered by your
208 policy.
209 8. Contact the Florida Department of Financial Services,
210 Division of Consumer Services’ toll-free helpline for
211 assistance with any insurance claim or questions pertaining
212 to the handling of your claim. You can reach the Helpline
213 by phone at ...(toll-free phone number)..., or you can seek
214 assistance online at the Florida Department of Financial
215 Services, Division of Consumer Services’ website at
216 ...(website address)....
217 YOU ARE ADVISED TO:
218 1. File all claims directly with your insurance company.
219 2. Contact your insurance company before entering into any
220 contract for repairs to confirm any managed repair policy
221 provisions or optional preferred vendors.
222 3. Make and document emergency repairs that are necessary
223 to prevent further damage. Keep the damaged property, if
224 feasible, keep all receipts, and take photographs or video
225 of damage before and after any repairs to provide to your
226 insurer.
227 4. Carefully read any contract that requires you to pay
228 out-of-pocket expenses or a fee that is based on a
229 percentage of the insurance proceeds that you will receive
230 for repairing or replacing your property.
231 5. Confirm that the contractor you choose is licensed to do
232 business in Florida. You can verify a contractor’s license
233 and check to see if there are any complaints against him or
234 her by calling the Florida Department of Business and
235 Professional Regulation. You should also ask the contractor
236 for references from previous work.
237 6. Require all contractors to provide proof of insurance
238 before beginning repairs.
239 7. Take precautions if the damage requires you to leave
240 your home, including securing your property and turning off
241 your gas, water, and electricity, and contacting your
242 insurance company and provide a phone number where you can
243 be reached.
244 Section 5. This act shall take effect July 1, 2025.