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
definedin 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.