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.
   10  Be It Enacted by the Legislature of the State of Florida:
   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.—
   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.
   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.