Florida Senate - 2026                                     SB 832
       
       
        
       By Senator Avila
       
       
       
       
       
       39-00139B-26                                           2026832__
    1                        A bill to be entitled                      
    2         An act relating to residential property insurance;
    3         amending s. 627.0621, F.S.; requiring that certain
    4         rate filings with the Office of Insurance Regulation
    5         from residential property insurers include rate
    6         transparency reports; providing for the office to
    7         accept such reports or to request the insurer make
    8         modifications; providing construction; providing
    9         requirements for such reports; requiring insurers to
   10         provide such reports to consumers; requiring that the
   11         report indicate that it is preliminary and subject to
   12         modification by the insurer at the direction of the
   13         office under certain circumstances; requiring the
   14         office to define terms used in such reports; requiring
   15         the office to establish and maintain a comprehensive
   16         resource center on its website; providing requirements
   17         for the resource center; specifying that certain
   18         information is not a trade secret and is not subject
   19         to certain public records exemptions; amending s.
   20         627.7011, F.S.; prohibiting an insurer from including
   21         the value of certain land when establishing a coverage
   22         amount or adjusting certain claims; providing
   23         construction; amending s. 627.7142, F.S.; conforming a
   24         cross-reference; providing an effective date.
   25          
   26  Be It Enacted by the Legislature of the State of Florida:
   27  
   28         Section 1. Present subsection (2) of section 627.0621,
   29  Florida Statutes, is redesignated as subsection (3) and amended,
   30  and a new subsection (2) is added to that section, to read:
   31         627.0621 Transparency in rate regulation.—
   32         (2) RATE TRANSPARENCY REPORT.—
   33         (a) Beginning October 1, 2026, every rate filing requesting
   34  a rate change for residential property coverage from a property
   35  insurer must include a rate transparency report for acceptance
   36  or, if necessary, modification by the insurer as directed by the
   37  office. The office may accept the rate transparency report for
   38  filing; or, if the office finds that the report fails to provide
   39  the required information in concise, plain language that aids
   40  consumers in their understanding of insurance or that the report
   41  is misleading, the office must return the report to the insurer
   42  with specific directions for modification. The office’s
   43  acceptance of the report for use or direction for modification
   44  may not be deemed an approval pursuant to s. 627.062. The report
   45  must be compiled in a uniform format prescribed by the
   46  commission and must include a graphical representation
   47  identifying a percentage breakdown of rating factors anticipated
   48  by the company, book, or program affected by the filing.
   49         (b) Along with an offer of coverage and upon renewal, an
   50  insurer shall provide the corresponding copy of the rate
   51  transparency report for the consumers offered rate to aid
   52  consumers in their understanding of insurance. If the report has
   53  not been accepted for use or modified in accordance with the
   54  office’s direction, the report must indicate that it is
   55  preliminary and subject to modification by the insurer at the
   56  direction of the office.
   57         (c) The rate transparency report must include the following
   58  categories of the book or program at the cumulative level:
   59         1. The percentage of the total rate factor associated with
   60  the cost of reinsurance.
   61         2. The percentage of the total rate factor associated with
   62  the cost of claims.
   63         3. The percentage of the total rate factor associated with
   64  the defense containment and costs.
   65         4. The percentage of the total rate factor associated with
   66  fees and commissions.
   67         5. The percentage of the rate factor associated with profit
   68  and contingency of the insurer.
   69         6. Any other categories deemed necessary by the office or
   70  commission.
   71  
   72  An estimated percentage of the influence of each listed factor
   73  provided must equal 100 percent.
   74         (d) The insurer shall provide the rate transparency report
   75  to the office upon the filing of a rate change with the office.
   76         (e) In addition to the categories required in paragraph
   77  (c), the rate transparency report must also include the
   78  following information:
   79         1. All major adverse findings by the office for the
   80  previous 3 calendar years.
   81         2. Whether the insurer uses affiliated entities to perform
   82  functions of the insurer.
   83         3. Contact information, including a telephone number, hours
   84  of service, and an e-mail address, for the Division of Consumer
   85  Services of the department.
   86         4. Contact information for the office.
   87         5. Address for the website for public access to rate filing
   88  and affiliate information outlined in subsection (3).
   89         6. Any change in the total insured value from the last
   90  policy period.
   91         (f) The office shall define, in concise and plain language,
   92  any term used in the rate transparency report to aid consumers
   93  in their understanding of insurance.
   94         (3)(2) WEBSITE FOR PUBLIC ACCESS TO RATE FILING
   95  INFORMATION.—
   96         (a) The office shall establish and maintain a comprehensive
   97  resource center on its website which uses concise and plain
   98  language to aid consumers in their understanding of insurance.
   99  The website must include substantive information on the current
  100  and historical dynamics of the market, data concerning the
  101  financial condition and market conduct of insurance companies,
  102  and insurance options available to consumers. At a minimum, the
  103  website must contain the following:
  104         1. Reports, using graphical information whenever possible,
  105  which outline information about the state of the market and
  106  adverse and positive trends affecting it.
  107         2. Tools that aid consumers in finding insurers, including,
  108  but not limited to, a listing of all companies actively doing
  109  business in this state which includes each company’s address,
  110  website, and all phone numbers and e-mail addresses to be used
  111  by insureds and applicants for coverage.
  112         3. Tools that aid consumers in selecting the coverages
  113  beneficial to them, including, but not limited to:
  114         a.Educational materials that explain the types of coverage
  115  in residential property insurance policies; the difference
  116  between replacement cost reimbursement and actual cash value
  117  reimbursement; a glossary of common terms used in policies; and
  118  a comparison of the coverage, terms, conditions, and exclusions
  119  contained in different homeowners and dwelling fire forms.
  120         b.Answers to commonly asked questions about residential
  121  property insurance coverage.
  122         4. Information about mitigation credits and the My Safe
  123  Florida Home Program, as well as other credits and discounts
  124  insurers may offer beyond wind mitigation.
  125         5. Access to the rate transparency report, annual
  126  statements, market conduct information, and other information
  127  related to each insurer.
  128         6. Information on the Citizens Property Insurance
  129  Corporation takeout process, the clearinghouse, and general
  130  information as reported by the office.
  131         7.Information on the claims process, including, but not
  132  limited to:
  133         a.Clear, step-by-step guidance on how to file a claim,
  134  what to expect during the claim process, and timelines for
  135  resolution of a claim.
  136         b.The obligations of insurers and insureds related to
  137  claim reporting, claim handling, communications regarding
  138  claims, claim investigations, claim decisions, and claim
  139  payments.
  140         c.For each insurer with active policies in this state, the
  141  means by which to report a claim, including any phone numbers,
  142  e-mail addresses, or website addresses used for claim reporting.
  143         8.Information on consumer protection, including, but not
  144  limited to:
  145         a.The rights of insureds under Florida law related to
  146  coverage; coverage renewals, nonrenewals, and cancellations; and
  147  mandated offers of coverage.
  148         b.Information on how to file consumer complaints with the
  149  Division of Consumer Services in the Department of Financial
  150  Services.
  151         9.Information on news and updates relevant to consumers
  152  regarding this state’s residential property insurance market,
  153  including regulatory changes, information on insurers that enter
  154  or exit the market, and industry trends.
  155         10.Information on disaster preparedness directly related
  156  to insurance, prepared by the office or by the Division of
  157  Emergency Management.
  158         11. With respect to any residential property rate filing,
  159  the office shall provide the following information on a publicly
  160  accessible Internet website:
  161         a.1. The overall rate change requested by the insurer.
  162         b.2. The rate change approved by the office along with all
  163  of the actuary’s assumptions and recommendations forming the
  164  basis of the office’s decision.
  165         c.3. Certification by the office’s actuary that, based on
  166  the actuary’s knowledge, his or her recommendations are
  167  consistent with accepted actuarial principles.
  168         d. Whether the insurer uses affiliated entities to perform
  169  administrative, claims handling, or other functions of the
  170  insurer and, if so, the total percentage of direct written
  171  premium paid to the affiliated entities by the insurer in the
  172  preceding calendar year.
  173         (b) For any rate filing, regardless of whether or not the
  174  filing is subject to a public hearing, the office shall provide
  175  on its website a means for any policyholder who may be affected
  176  by a proposed rate change to send an e-mail regarding the
  177  proposed rate change. Such e-mail must be accessible to the
  178  actuary assigned to review the rate filing.
  179         (c) The statewide average requested rate change and final
  180  approved statewide average rate change within a filing is not a
  181  trade secret as defined in s. 688.002 or s. 812.081(1) and is
  182  not subject to the public records exemption for trade secrets
  183  provided in s. 119.0715 or s. 624.4213.
  184         (d) County rating examples submitted to the office through
  185  the rate collection system for the purpose of displaying rates
  186  on the office website are not a trade secret as defined in s.
  187  688.002 or s. 812.081(1) and are not subject to the public
  188  records exemption for trade secrets provided in s. 119.0715 or
  189  s. 624.4213.
  190         Section 2. Present subsections (5) and (6) of section
  191  627.7011, Florida Statutes, are redesignated as subsections (6)
  192  and (7), respectively, and a new subsection (5) is added to that
  193  section, to read:
  194         627.7011 Homeowners’ policies; offer of replacement cost
  195  coverage and law and ordinance coverage.—
  196         (5) When establishing the coverage amount or adjusting a
  197  claim for a dwelling or other structure under a homeowner’s
  198  insurance policy, an insurer may not include the value of the
  199  land on which such dwelling or structure is located. This
  200  subsection may not be construed to permit inclusion of the value
  201  of land for dwellings or structures located on the shoreline,
  202  surrounded in whole or in part by a body of water, or on land
  203  formed or altered by erosion or accretion.
  204         Section 3. Section 627.7142, Florida Statutes, is amended
  205  to read:
  206         627.7142 Homeowner Claims Bill of Rights.—An insurer
  207  issuing a personal lines residential property insurance policy
  208  in this state must provide a Homeowner Claims Bill of Rights to
  209  a policyholder within 14 days after receiving an initial
  210  communication with respect to a claim. The purpose of the bill
  211  of rights is to summarize, in simple, nontechnical terms,
  212  existing Florida law regarding the rights of a personal lines
  213  residential property insurance policyholder who files a claim of
  214  loss. The Homeowner Claims Bill of Rights is specific to the
  215  claims process and does not represent all of a policyholder’s
  216  rights under Florida law regarding the insurance policy. The
  217  Homeowner Claims Bill of Rights does not create a civil cause of
  218  action by any individual policyholder or class of policyholders
  219  against an insurer or insurers. The failure of an insurer to
  220  properly deliver the Homeowner Claims Bill of Rights is subject
  221  to administrative enforcement by the office but is not
  222  admissible as evidence in a civil action against an insurer. The
  223  Homeowner Claims Bill of Rights does not enlarge, modify, or
  224  contravene statutory requirements, including, but not limited
  225  to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074,
  226  and does not prohibit an insurer from exercising its right to
  227  repair damaged property in compliance with the terms of an
  228  applicable policy or ss. 627.7011(7)(e) and 627.702(7) ss.
  229  627.7011(6)(e) and 627.702(7). The Homeowner Claims Bill of
  230  Rights must state:
  231  
  232                          HOMEOWNER CLAIMS                         
  233                           BILL OF RIGHTS                          
  234         This Bill of Rights is specific to the claims process
  235         and does not represent all of your rights under
  236         Florida law regarding your policy. There are also
  237         exceptions to the stated timelines when conditions are
  238         beyond your insurance company’s control. This document
  239         does not create a civil cause of action by an
  240         individual policyholder, or a class of policyholders,
  241         against an insurer or insurers and does not prohibit
  242         an insurer from exercising its right to repair damaged
  243         property in compliance with the terms of an applicable
  244         policy.
  245  
  246         YOU HAVE THE RIGHT TO:
  247         1. Receive from your insurance company an
  248         acknowledgment of your reported claim within 7 days
  249         after the time you communicated the claim.
  250         2. Upon written request, receive from your
  251         insurance company within 30 days after you have
  252         submitted a complete proof-of-loss statement to your
  253         insurance company, confirmation that your claim is
  254         covered in full, partially covered, or denied, or
  255         receive a written statement that your claim is being
  256         investigated.
  257         3. Receive from your insurance company a copy of
  258         any detailed estimate of the amount of the loss within
  259         7 days after the estimate is generated by the
  260         insurance company’s adjuster.
  261         4. Within 60 days, subject to any dual interest
  262         noted in the policy, receive full settlement payment
  263         for your claim or payment of the undisputed portion of
  264         your claim, or your insurance company’s denial of your
  265         claim.
  266         5. Receive payment of interest, as provided in s.
  267         627.70131, Florida Statutes, from your insurance
  268         company, which begins accruing from the date your
  269         claim is filed if your insurance company does not pay
  270         full settlement of your initial, reopened, or
  271         supplemental claim or the undisputed portion of your
  272         claim or does not deny your claim within 60 days after
  273         your claim is filed. The interest, if applicable, must
  274         be paid when your claim or the undisputed portion of
  275         your claim is paid.
  276         6. Free mediation of your disputed claim by the
  277         Florida Department of Financial Services, Division of
  278         Consumer Services, under most circumstances and
  279         subject to certain restrictions.
  280         7. Neutral evaluation of your disputed claim, if
  281         your claim is for damage caused by a sinkhole and is
  282         covered by your policy.
  283         8. Contact the Florida Department of Financial
  284         Services, Division of Consumer Services’ toll-free
  285         helpline for assistance with any insurance claim or
  286         questions pertaining to the handling of your claim.
  287         You can reach the Helpline by phone at ...(toll-free
  288         phone number)..., or you can seek assistance online at
  289         the Florida Department of Financial Services, Division
  290         of Consumer Services’ website at ...(website
  291         address)....
  292  
  293         YOU ARE ADVISED TO:
  294         1. File all claims directly with your insurance
  295         company.
  296         2. Contact your insurance company before entering
  297         into any contract for repairs to confirm any managed
  298         repair policy provisions or optional preferred
  299         vendors.
  300         3. Make and document emergency repairs that are
  301         necessary to prevent further damage. Keep the damaged
  302         property, if feasible, keep all receipts, and take
  303         photographs or video of damage before and after any
  304         repairs to provide to your insurer.
  305         4. Carefully read any contract that requires you
  306         to pay out-of-pocket expenses or a fee that is based
  307         on a percentage of the insurance proceeds that you
  308         will receive for repairing or replacing your property.
  309         5. Confirm that the contractor you choose is
  310         licensed to do business in Florida. You can verify a
  311         contractor’s license and check to see if there are any
  312         complaints against him or her by calling the Florida
  313         Department of Business and Professional Regulation.
  314         You should also ask the contractor for references from
  315         previous work.
  316         6. Require all contractors to provide proof of
  317         insurance before beginning repairs.
  318         7. Take precautions if the damage requires you to
  319         leave your home, including securing your property; and
  320         turning off your gas, water, and electricity;, and
  321         contacting your insurance company; and providing
  322         provide a phone number where you can be reached.
  323  
  324         Section 4. This act shall take effect July 1, 2026.