On the final day of the Florida 2021 legislative session, lawmakers made major changes to the state's car insurance and homeowners insurance systems.
Auto Insurance SB54
The passage of the bill repeals the states no-fault injury protection (PIP) system. “This is a long fought and sophisticated debate on car insurance overhaul,” says Ellsworth Buck, Vice President of Insurance.
The passage of the bill moves Florida from the no-fault car insurance system to an automobile liability system. Florida will join 48 states that currently have bodily injury insurance systems. Floridians will be asked to carry bodily injury coverage starting at $25,000 for all drivers.
The bill is supposed to reduce auto insurance rates while bringing a reduction to widespread fraud. NU Property & Casualty Group opposed the bill's passage, believing the intentions are good, however it doesn't go far enough with reforms and can only result in an increase in auto insurance costs as well as an rise in uninsured motorist on Florida roads.
If signed by DeSantis, the brand new law will take effect January 1, 2022.
Property Insurance SB76
This bill addresses a few of the issues with the states home insurance market.
“While this bill certainly doesn't solve all the issues with the rising cost in homeowners insurance, hopefully it is a part of the right direction,” says Buck with Insurance.
According towards the Insurance Journal, the legislation was significantly revised from the original draft. A few of the changes include:
- Reducing the claims deadline on all states two years in the date of loss, except for supplemental claims that are given one more year.
- Makes it illegal for roofers or any person acting on their behalf to create a “prohibited advertisement,” including a digital communication, telephone call or document that solicits a claim.
- Prohibits the offering of anything of value for performing a roof inspection, an offer to interpret an insurance policy or file claims, or adjust the claim around the insured's behalf.
- Prohibits a contractor from providing repairs to have an insured having a contract for repairs that does not incorporate a detailed cost estimate from the labor and materials necessary to complete the repairs.
Removed in the final legislation was allowing insurers to include policy language that provides actual cash value instead of full rc on roofs.
If signed by DeSantis, the new law will require effect, July 1, 2021.
