Florida Senate - 2025                                     SB 790
       
       
        
       By Senator Bradley
       
       
       
       
       
       6-00538A-25                                            2025790__
    1                        A bill to be entitled                      
    2         An act relating to policy cancellations and
    3         nonrenewals by property insurers; amending s.
    4         627.4133, F.S.; prohibiting insurers from canceling or
    5         nonrenewing, within certain timeframes, policies
    6         covering personal residential or commercial
    7         residential properties damaged by hurricanes or wind
    8         losses; providing that such prohibition applies to
    9         flood damages caused by hurricanes under certain
   10         circumstances; providing that an insurer may not
   11         cancel personal residential or commercial residential
   12         property insurance policies until certain repairs are
   13         made or a specified policy renewal expires;
   14         prohibiting certain claims for loss or damage from
   15         being covered under an extended or renewed policy;
   16         specifying that such loss or damage is excluded from
   17         the extended or renewed policy; providing
   18         applicability; revising exceptions; authorizing the
   19         Commissioner of Insurance Regulation to waive certain
   20         provisions; providing construction; deleting
   21         applicability; revising construction; requiring that
   22         certain policies contain similar terms under certain
   23         circumstances; amending s. 627.7011, F.S.; requiring
   24         homeowner’s policy insurers to give specified
   25         notifications to policyholders; requiring that such
   26         notice be mailed and, under certain circumstances, e
   27         mailed; specifying exceptions to notification
   28         requirements; providing an effective date.
   29          
   30  Be It Enacted by the Legislature of the State of Florida:
   31  
   32         Section 1. Paragraph (e) of subsection (2) of section
   33  627.4133, Florida Statutes, is amended to read:
   34         627.4133 Notice of cancellation, nonrenewal, or renewal
   35  premium.—
   36         (2) With respect to any personal lines or commercial
   37  residential property insurance policy, including, but not
   38  limited to, any homeowner, mobile home owner, farmowner,
   39  condominium association, condominium unit owner, apartment
   40  building, or other policy covering a residential structure or
   41  its contents:
   42         (e)1. An authorized insurer may not cancel or nonrenew a
   43  personal residential or commercial residential property
   44  insurance policy covering a dwelling or residential property
   45  located in this state:
   46         a. For a period of 90 days after the dwelling or
   47  residential property has been repaired, if such property has
   48  been damaged as a result of a hurricane or wind loss that is the
   49  subject of the declaration of emergency pursuant to s. 252.36
   50  and the filing of an order by the Commissioner of Insurance
   51  Regulation. Damage under this sub-subparagraph includes flood
   52  damage caused by a hurricane if flood is a covered peril under
   53  the personal residential or commercial residential property
   54  insurance policy. If flood is not a covered peril under the
   55  personal residential or commercial residential property
   56  insurance policy and the property has been damaged as a result
   57  of flood caused by a hurricane, an insurer may not cancel or
   58  nonrenew the personal residential or commercial residential
   59  property insurance policy until the earlier of when the property
   60  has been repaired or the expiration of one subsequent renewal of
   61  the policy that was in force at the time of loss or damage. If
   62  an insurer is required to extend or renew a policy pursuant to
   63  this sub-subparagraph, any claim for loss or damage arising from
   64  unrepaired flood damage caused by a hurricane may not be covered
   65  under the extended or renewed policy. Such loss or damage is
   66  excluded from the extended or renewed policy regardless of any
   67  other cause or event that contributes concurrently or in any
   68  sequence to the loss or damage. When flood is not a covered
   69  peril under the personal residential or commercial residential
   70  property insurance policy, the requirements under this sub
   71  subparagraph to extend or renew the policy do not apply if the
   72  insurer has no actual knowledge of the flood damage or if the
   73  flood damage, along with the physical evidence of such damage,
   74  is not communicated to the insurer before the expiration of the
   75  policy.
   76         b. Until the earlier of when the dwelling or residential
   77  property has been repaired or 1 year after the insurer issues
   78  the final claim payment, if such property was damaged by any
   79  covered peril and sub-subparagraph a. does not apply.
   80         2. The restrictions on cancellation and nonrenewal in sub
   81  subparagraph b. are not applicable to loss or damage to the
   82  insured property that is valued at less than the applicable
   83  deductible for a personal residential property insurance policy
   84  or less than the applicable deductible for a commercial
   85  residential insurance policy.
   86         3. However, an insurer or agent may cancel or nonrenew such
   87  a policy before prior to the repair of the dwelling or
   88  residential property:
   89         a. Upon 10 days’ notice:
   90         (I) For nonpayment of premium; or
   91         (II)If the named insured no longer has an insurable
   92  interest in the property; or
   93         b. Upon 45 days’ notice:
   94         (I) For a material misstatement or fraud related to the
   95  claim;
   96         (II) If the insurer determines that the insured has
   97  unreasonably caused a delay in the repair of the dwelling; or
   98         (III) If, after the expiration of the declaration of
   99  emergency pursuant to s. 252.36 and the order by the
  100  Commissioner of Insurance Regulation, the insurer has made a
  101  reasonable written inquiry to the insured as to the status of
  102  the repairs and the insured has failed to respond within 30
  103  calendar days to provide information that is responsive to the
  104  inquiry, including the reasons for any delay in completing
  105  repairs, to the address or e-mail account designated by the
  106  insurer or its agent; or
  107         (IV) If the insurer has paid policy limits for a loss or
  108  damage to the insured dwelling under a personal residential
  109  policy, or policy limits for a loss or damage to each insured
  110  structure that was damaged under a commercial residential
  111  policy.
  112         4.3. If the insurer elects to nonrenew a policy covering a
  113  property that has been damaged, the insurer must shall provide
  114  at least 90 days’ notice to the insured that the insurer intends
  115  to nonrenew the policy 90 days after the dwelling or residential
  116  property has been repaired. Nothing in This paragraph does not
  117  shall prevent the insurer from canceling or nonrenewing the
  118  policy 90 days after the repairs are complete for the same
  119  reasons the insurer would otherwise have canceled or nonrenewed
  120  the policy but for the limitations of subparagraph 1. The
  121  Financial Services Commission may adopt rules, and the
  122  Commissioner of Insurance Regulation may issue orders, necessary
  123  to implement this paragraph. The Commissioner of Insurance
  124  Regulation may also waive any provision of this paragraph upon
  125  approval of a petition filed by an insurer requesting relief due
  126  to solvency concerns or other factors that could harm
  127  policyholders if the provisions of this paragraph were enforced
  128  upon the insurer.
  129         5.4. This paragraph is not intended to revise or modify any
  130  provision of an emergency order issued by the office before July
  131  1, 2025 shall also apply to personal residential and commercial
  132  residential policies covering property that was damaged as the
  133  result of Hurricane Ian or Hurricane Nicole.
  134         6.5. For purposes of this paragraph:
  135         a. A structure is deemed to be repaired:
  136         (I) When substantially completed and restored to the extent
  137  that it is insurable by Citizens Property Insurance Corporation
  138  or by another authorized insurer writing policies in this state;
  139  or
  140         (II)When one of the following persons has inspected and
  141  certified or attested to the completion of the repairs:
  142         (A)A home inspector licensed under s. 468.8314;
  143         (B)A building code inspector certified under s. 468.607;
  144         (C)A general, building, or residential contractor licensed
  145  under s. 489.111;
  146         (D)A professional engineer licensed under s. 471.015; or
  147         (E)A professional architect licensed under s. 481.213.
  148         b. The term “insurer” means an authorized insurer.
  149         c.If a policy is extended or renewed to comply with this
  150  paragraph or with any other provision of the Commissioner of
  151  Insurance Regulation’s order, the policy must contain policy
  152  terms similar to the policy being extended or renewed unless the
  153  insurer has updated approved forms that will apply to all
  154  insureds with the same endorsement. However, this sub
  155  subparagraph does not impact current law with regard to the
  156  rates insurers may charge for policies extended or renewed under
  157  this paragraph.
  158         7.This paragraph does not affect s. 95.11 or s. 627.70132.
  159         Section 2. Subsection (7) is added to section 627.7011,
  160  Florida Statutes, to read:
  161         627.7011 Homeowners’ policies; offer of replacement cost
  162  coverage and law and ordinance coverage.—
  163         (7) Any insurer delivering or issuing a homeowner’s
  164  insurance policy shall give the policyholder at least 45 days’
  165  advance written notice of cancellation, nonrenewal, or rate
  166  change. Such notice must be mailed to the policyholder’s last
  167  address as shown by the records of the insurer and, if an e-mail
  168  address has been provided, e-mailed to the last e-mail address
  169  on record. However, if cancellation is for nonpayment of
  170  premium, at least 10 days’ written notice must be given,
  171  accompanied by the reason. Written notice of cancellation for
  172  nonpayment of premium is not required for homeowner’s insurance
  173  policies under which premiums are payable monthly.
  174         Section 3. This act shall take effect July 1, 2025.