Florida Senate - 2018 SB 1140
By Senator Garcia
36-01319-18 20181140__
1 A bill to be entitled
2 An act relating to residential property insurance
3 contracts; amending s. 627.7016, F.S.; specifying
4 requirements for an insurer offering residential
5 coverage that places a restriction on the
6 policyholder’s choice of contractor necessary to
7 repair damage covered by the policy; providing
8 penalties for violations; providing an effective date.
9
10 Be It Enacted by the Legislature of the State of Florida:
11
12 Section 1. Section 627.7016, Florida Statutes, is amended
13 to read:
14 627.7016 Insurer contracts with building contractors;
15 restrictions on contractor selection; requirements; penalties.—
16 (1) RESIDENTIAL COVERAGE WITHOUT RESTRICTIONS ON CONTRACTOR
17 SELECTION.—An insurer who offers residential coverage, as
18 described defined in s. 627.4025, may contract with a building
19 contractor skilled in techniques that mitigate hurricane damage.
20 Insurers may offer policyholders the option to select the
21 services of such building contractors to repair damage covered
22 by the insurance policy. The insurer must guarantee the building
23 contractor’s work and may offer the policyholder any other
24 terms, conditions, or benefits. The insurance company is not
25 liable for the actions of the building contractor.
26 (2) RESIDENTIAL COVERAGE RESTRICTING CONTRACTOR SELECTION.—
27 (a) An insurer offering residential coverage, as described
28 in s. 627.4025, which places a restriction on the policyholder’s
29 choice of contractor necessary to repair damage covered by the
30 policy must:
31 1. Use a contractor who has an active status certificate or
32 registration under part I of chapter 489;
33 2. Prohibit the contractor from placing a lien on the
34 covered property for the work performed under the policy;
35 3. Ensure that all necessary permits are obtained for work
36 performed by the contractor under the policy; and
37 4. Guarantee the quality of work performed by the
38 contractor under the policy for 3 years after all work has been
39 completed or after a certificate of occupancy is issued.
40 (b) The office may impose a fine of $10,000 per occurrence
41 against an insurer that violates this subsection. In addition,
42 an insurer that violates subparagraph (a)1. or subparagraph
43 (a)3. is subject to any fine, penalty, or rebuilding costs
44 required by the local government.
45 Section 2. This act shall take effect July 1, 2018.