Gov. Ron DeSantis signed legislation on Thursday he said will implement the most significant and comprehensive property insurance reforms Florida has seen in decades.
“This package represents the most significant reforms to Florida’s homeowners insurance market in a generation,” said DeSantis.
Senate Bill 2B enacts pro-consumer measures to help alleviate rising insurance costs, increases insurance claim transparency and cracks down on frivolous lawsuits.
Specific provisions to stabilize the market include:
- $2 billion in reinsurance relief through the Reinsurance to Assist Policy (RAP) program to benefit policyholders over the next two years.
- $150 million for the My Safe Florida Home Program to provide grants to Florida homeowners for hurricane retrofitting, making homes safer and more resistant to hurricane damage, which can result in premium discounts for those who participate in the program.
- Prohibiting insurance companies from denying coverage solely based on the age of a roof if the roof is less than 15 years old or if the roof is determined to have at least 5 years of useful life remaining.
- Requiring insurance companies to provide policyholders with a reasonable explanation if they deny or partially deny a claim and provides consumers with greater access to information during the claim adjustment process.
- Creating a new standard for application of attorney fee multipliers which have been liberally applied, resulting in increased costs to consumers.
- Limiting the assignment of attorney’s fees in property insurance cases, disincentivizing frivolous claims.
