Florida Senate - 2022                        COMMITTEE AMENDMENT
       Bill No. SB 2-A
       
       
       
       
       
       
                                Ì532468DÎ532468                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                 Comm: UNFAV           .                                
                  12/12/2022           .                                
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       The Committee on Fiscal Policy (Berman) recommended the
       following:
       
       
       
    1         Senate Amendment (with title amendment)
    2  
    3  
    4         Delete lines 2748 - 2863
    5  and insert:
    6         627.7142 Homeowner Claims Bill of Rights; Reduction of
    7  Policyholder Rights Due to 2022 Changes in Florida Law.—
    8         (1) An insurer issuing a personal lines residential
    9  property insurance policy in this state must provide a Homeowner
   10  Claims Bill of Rights to a policyholder within 14 days after
   11  receiving an initial communication with respect to a claim. The
   12  purpose of the bill of rights is to summarize, in simple,
   13  nontechnical terms, existing Florida law regarding the rights of
   14  a personal lines residential property insurance policyholder who
   15  files a claim of loss. The Homeowner Claims Bill of Rights is
   16  specific to the claims process and does not represent all of a
   17  policyholder’s rights under Florida law regarding the insurance
   18  policy. The Homeowner Claims Bill of Rights does not create a
   19  civil cause of action by any individual policyholder or class of
   20  policyholders against an insurer or insurers. The failure of an
   21  insurer to properly deliver the Homeowner Claims Bill of Rights
   22  is subject to administrative enforcement by the office but is
   23  not admissible as evidence in a civil action against an insurer.
   24  The Homeowner Claims Bill of Rights does not enlarge, modify, or
   25  contravene statutory requirements, including, but not limited
   26  to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074,
   27  and does not prohibit an insurer from exercising its right to
   28  repair damaged property in compliance with the terms of an
   29  applicable policy or ss. 627.7011(6)(e) and 627.702(7). The
   30  Homeowner Claims Bill of Rights must state:
   31  
   32                          HOMEOWNER CLAIMS                         
   33                           BILL OF RIGHTS                          
   34         This Bill of Rights is specific to the claims process
   35         and does not represent all of your rights under
   36         Florida law regarding your policy. There are also
   37         exceptions to the stated timelines when conditions are
   38         beyond your insurance company’s control. This document
   39         does not create a civil cause of action by an
   40         individual policyholder, or a class of policyholders,
   41         against an insurer or insurers and does not prohibit
   42         an insurer from exercising its right to repair damaged
   43         property in compliance with the terms of an applicable
   44         policy.
   45  
   46         YOU HAVE THE RIGHT TO:
   47         1. Receive from your insurance company an
   48         acknowledgment of your reported claim within 7 14 days
   49         after the time you communicated the claim.
   50         2. Upon written request, receive from your
   51         insurance company within 30 days after you have
   52         submitted a complete proof-of-loss statement to your
   53         insurance company, confirmation that your claim is
   54         covered in full, partially covered, or denied, or
   55         receive a written statement that your claim is being
   56         investigated.
   57         3. Receive from your insurance company a copy of
   58         any detailed estimate of the amount of the loss within
   59         7 days after the estimate is generated by the
   60         insurance company’s adjuster.
   61         4. Within 60 90 days, subject to any dual
   62         interest noted in the policy, receive full settlement
   63         payment for your claim or payment of the undisputed
   64         portion of your claim, or your insurance company’s
   65         denial of your claim.
   66         5.4. Receive payment of interest, as provided in
   67         s. 627.70131, Florida Statutes, from your insurance
   68         company, which begins accruing from the date your
   69         claim is filed if your insurance company does not pay
   70         full settlement of your initial, reopened, or
   71         supplemental claim or the undisputed portion of your
   72         claim or does not deny your claim within 60 90 days
   73         after your claim is filed. The interest, if
   74         applicable, must be paid when your claim or the
   75         undisputed portion of your claim is paid.
   76         6.5. Free mediation of your disputed claim by the
   77         Florida Department of Financial Services, Division of
   78         Consumer Services, under most circumstances and
   79         subject to certain restrictions.
   80         7.6. Neutral evaluation of your disputed claim,
   81         if your claim is for damage caused by a sinkhole and
   82         is covered by your policy.
   83         8.7. Contact the Florida Department of Financial
   84         Services, Division of Consumer Services’ toll-free
   85         helpline for assistance with any insurance claim or
   86         questions pertaining to the handling of your claim.
   87         You can reach the Helpline by phone at ...(toll-free
   88         phone number)..., or you can seek assistance online at
   89         the Florida Department of Financial Services, Division
   90         of Consumer Services’ website at ...(website
   91         address)....
   92  
   93         YOU ARE ADVISED TO:
   94         1. File all claims directly with your insurance
   95         company.
   96         2. Contact your insurance company before entering
   97         into any contract for repairs to confirm any managed
   98         repair policy provisions or optional preferred
   99         vendors.
  100         3. Make and document emergency repairs that are
  101         necessary to prevent further damage. Keep the damaged
  102         property, if feasible, keep all receipts, and take
  103         photographs or video of damage before and after any
  104         repairs to provide to your insurer.
  105         4. Carefully read any contract that requires you
  106         to pay out-of-pocket expenses or a fee that is based
  107         on a percentage of the insurance proceeds that you
  108         will receive for repairing or replacing your property.
  109         5. Confirm that the contractor you choose is
  110         licensed to do business in Florida. You can verify a
  111         contractor’s license and check to see if there are any
  112         complaints against him or her by calling the Florida
  113         Department of Business and Professional Regulation.
  114         You should also ask the contractor for references from
  115         previous work.
  116         6. Require all contractors to provide proof of
  117         insurance before beginning repairs.
  118         7. Take precautions if the damage requires you to
  119         leave your home, including securing your property and
  120         turning off your gas, water, and electricity, and
  121         contacting your insurance company and provide a phone
  122         number where you can be reached.
  123  
  124         (2)For personal lines residential property insurance
  125  policies entered into or renewed beginning March 1, 2023, and
  126  through March 1, 2024, the policyholder must be notified of the
  127  Reduction of Policyholder Rights Due to 2022 Changes in Florida
  128  Law provisions and must provide written acknowledgement of such
  129  notification:
  130  
  131                  REDUCTION OF POLICYHOLDER RIGHTS                 
  132                 DUE TO 2022 CHANGES IN FLORIDA LAW                
  133  
  134         1.As a policyholder, you no longer have the
  135         right to assign your claim to a third party, which
  136         includes, but is not limited to, a contractor, a water
  137         mitigation company, a roofing company, or an emergency
  138         services company.
  139         2.As a policyholder, you cannot seek or obtain
  140         damages for bad faith or extracontractual damages
  141         until and unless you prevail in a summary judgment
  142         action or obtain a jury verdict followed by obtaining
  143         a final judgment.
  144         3.As a policyholder, you are not entitled to
  145         recover attorney fees even if the insurance company
  146         wrongfully denies, delays, or underpays the claim.
  147         4.As a policyholder, you may not be able to
  148         access the courts for resolution of your dispute,
  149         depending upon the language in your insurance policy.
  150         Changes in Florida law allow your insurance company to
  151         write mandatory arbitration provisions into the
  152         insurance policy.
  153         5.If you are insured by Citizens Property
  154         Insurance Corporation, as a policyholder, you will now
  155         have the burden to prove that water damage from a
  156         windstorm event is wind damage, rather than the burden
  157         resting with your insurance company to prove that
  158         flooding caused the damage.
  159         6.If you are insured by Citizens Property
  160         Insurance Corporation, as a policyholder, you will be
  161         required to pay for flood insurance as a condition of
  162         having windstorm coverage.
  163         7.Recent changes in Florida law allow your
  164         insurance company to complete the ENTIRE investigation
  165         and payment or denial of a claim without ever visiting
  166         the property to inspect the damage in person. This may
  167         be performed remotely by using photos and other
  168         digital means to estimate the value of the claim.
  169         8.As a policyholder, you have 18 months to
  170         complete repairs and/or complete necessary
  171         replacement(s) to the home, building, structure, and
  172         contents and provide changes and/or supplements to the
  173         claim, regardless of how your insurance company has
  174         acted in response to the claim and regardless of how
  175         long it takes the insurance company to investigate,
  176         adjust, and make a claims determination on the initial
  177         claim.
  178         9.Before filing a lawsuit against an insurer,
  179         you must file a notice of intent to litigate, which
  180         must include extensive documentation supporting
  181         coverage and the amount claimed. You are prohibited
  182         from using any of the supporting documents as evidence
  183         in any proceeding.
  184  
  185  ================= T I T L E  A M E N D M E N T ================
  186  And the title is amended as follows:
  187         Between lines 132 and 133
  188  insert:
  189         requiring that policyholders of personal lines
  190         residential property insurance policies entered into
  191         or renewed during a specified period receive and
  192         provide written acknowledgment of a specified
  193         Reduction of Policyholder Rights Due to 2022 Changes
  194         in Florida Law notification;