So far, 2023 has brought numerous changes to insurance laws and regulations here in Florida. As property owners, it's essential to stay informed about these modifications, which could potentially impact your insurance coverage and responsibilities. So let's break them down.
Senate Bill 1002 – Motor Vehicle Glass
Senate Bill 1002, effective from May 25, 2023, addresses rules around motor vehicle glass repairs and replacements. A crucial change includes prohibiting repair shops from offering incentives in exchange for making insurance claims for vehicle glass replacement or repair. The bill also prevents insurance entities from requiring consumers to use a specific company or location for windshield services. These reforms aim to ensure fair practices within the motor vehicle repair industry, particularly concerning insurance claims.
Direct Impact - senate bill 1002
These changes have several important implications for consumers. Firstly, the prohibition against offering incentives for insurance claims discourages unnecessary repairs and protects consumers from potentially deceptive practices by repair shops. Secondly, the restriction on insurance entities from requiring consumers to use a specific company or location for windshield services empowers consumers with the freedom of choice. Finally, the requirement for insurance companies to provide a discount, if they offer a policy that includes a managed repair arrangement, could potentially lead to cost savings for consumers. In essence, this law ensures transparency, protects consumer rights, and may lead to cost savings in motor vehicle glass repairs and replacements.
Senate Bill 7052 – Insurer Accountability
The provisions of Senate Bill 7052, effective July 1, 2023, significantly increase the oversight of insurance companies in Florida. With a focus on insurer accountability, the bill mandates frequent examinations of insurance companies, based on risk and complaint levels, as well as strict reporting requirements. It also enforces stricter penalties for violations, including during state emergencies. In essence, this bill tightens the regulation of insurance companies to better protect you, the policyholders.
Direct Impact: Senate Bill 7052
This law places more accountability on insurance companies, which directly benefits consumers. Under this legislation, insurers face enhanced scrutiny in the wake of events like hurricanes. This oversight, triggered by a certain level of consumer complaints or claims, ensures that companies are held responsible for their actions and obligations. Consumers are also protected from potentially hazardous financial operations of insurance companies through stringent evaluation procedures. Additionally, a decrease in response time from insurers and the prohibition of altering adjusters' reports without clear explanation increases consumer protection. The law grants consumers the right to be informed about mitigation discounts available to them during hurricane events.
House Bill 799 – Property Insurance
House Bill 799, effective July 1, 2023, brings changes to property insurance. Notably, it requires insurance companies to take into account wind uplift prevention mitigation techniques during rate filings. It also lays out stipulations for properties insured by Citizens to secure flood insurance, with varying deadlines based on the dwelling's replacement cost. Another significant point is that the bill allows for major rate increases on certain Citizens' policies. The changes seek to refine policy pricing and ensure broader risk coverage.
Direct Impact: House bill 799
Consumers are affected in several ways by this bill. The requirement for insurance companies to consider wind uplift prevention mitigation techniques in residential property insurance rate filings could potentially lead to more accurate pricing, thus saving money for homeowners who have invested in these mitigation strategies. On the other hand, new policies issued by the Citizens Property Insurance Corporation after November 1, 2023, may see rate increases of up to 50%. Furthermore, mandatory flood insurance deadlines based on structure or unit dwelling replacement costs could increase upfront costs for consumers but would provide better protection against flood-related losses.
House Bill 1185 – Consumer Protection
Lastly, House Bill 1185 offers further consumer protection by defining the applicability of a hurricane deductible and modifying insurance cancellation rules. Now, a hurricane deductible applies from the time a hurricane warning is issued until 72 hours after the last hurricane warning is terminated. Furthermore, the cancellation period for a policy has been reduced from 90 to 60 days, except in specific cases. This bill aims to enhance consumer protection in the face of natural disasters and clarify cancellation rights.
Direct Impact: House bill 1185
This 90 to 60-day timeframe change may put consumers at a disadvantage by reducing the window of time they have to correct any potential issues with their policy. However, the law provides additional protections, as it requires insurance companies to apply a hurricane deductible only during a specific time frame.
House Bill 1185 – Consumer Protections Changes for Public Adjusters
In addition to changes affecting insurance cancellation and deductibles, House Bill 1185 also establishes significant protections for consumers engaging with public adjusters. Effective from July 1, 2023, these regulations include stipulations on fee collections, third-party service contracts, fee responsibility for representation of third parties, and rules for canceling public adjuster contracts under certain conditions.
Direct Impact: house bill 1185
This bill provides a host of protections for consumers engaging with public adjusters. With requirements such as a written contract for services, fee limits, and rules on contract cancellation, consumers are safeguarded against unfair practices. The detailed disclosure mandate ensures that consumers are made aware of their rights and the responsibilities of public adjusters. The law also protects consumers from being charged for claim payments or settlements that occur before the contract with a public adjuster is executed, ensuring that consumers aren't charged for services not provided by the public adjuster. Lastly, requirements like displaying the adjuster's license, listing contact information in contracts, and retaining a copy of the signed contract for five years add extra layers of accountability and transparency to the process.
Harrell Adjusting Services: Keeping You in the Know
The insurance landscape in Florida has seen several regulatory changes this year, designed to safeguard your rights as a policyholder and ensure fair practices by insurance companies. You can see all of these changes in more detail through the Florida Department of Financial Services. As always, we will continue to stay on top of future changes to ensure we are as informed as possible to help you with your insurance claims and appeals. If you have further questions about how any of these changes may impact you, we are always available for a call.
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