3. 2 – New Florida Law Updates
The state of Florida made several changes to its insurance laws, affecting all lines of adjusters and the property and casualty industry in general, during its recently concluded legislative session.
Notice of Change in Policy Terms
Florida law permits all renewal policies to contain changes in policy terms.168 The current law primarily addresses the requirement for advance written notice that summarizes changes and the corresponding time frames.
Beginning January 1, 2025, the notice must be in bold type of at least 14 points and must be included as a single page or consecutive pages, as necessary, within the written notice.
This amended legislation takes effect on July 1, 2024.
Division of Investigative and Forensic Services Name Change
The Department has renamed the Division of Investigative and Forensic Services to the Division of Criminal Investigations. This division is the Department’s law enforcement agency that protects Florida citizens and businesses from financial and insurance fraud.
This change takes effect on May 2, 2024.
My Safe Florida Condominium Pilot Program
The Florida Legislature has established the My Safe Florida Condominium Pilot Program within the Department of Financial Services to provide no-cost hurricane mitigation inspections and grants to eligible condominium associations. Implementation of the program is subject to annual legislative appropriations.
The program applies to condominium associations with condominium properties within 15 miles of the coastline. The program is similar to the My Safe Florida Home Program for owners of site-built, single-family residential properties, regarding participation requirements, hurricane mitigation inspectors and inspections, and eligibility for mitigation grants.
Hurricane Mitigation Inspectors
Licensed inspectors will provide inspections of the property to determine:
- The mitigation measures that are needed
- The insurance premium discounts that may be available to the association
- The improvements to existing association property that are needed to reduce a property’s vulnerability to hurricane damage
Wind Certification Entity Requirements
The Department will contract with wind certification entities to provide hurricane mitigation inspections. To qualify for selection as a wind certification entity, the entity must, at a minimum, meet the following requirements:
- Use hurricane mitigation inspectors who are licensed or certified as:
- building inspectors under the state’s Building Code
- general, building, or residential contractors under the Professions and Occupations Code (Contracting)
- professional engineers under the Professions and Occupations Code (Engineering)
- professional architects under the Professions and Occupations Code (Architecture, Interior Design, and Landscape Architecture)
- Home inspectors under the Professions and Occupations Code (Miscellaneous Professions)
- Provide at least three hours of hurricane mitigation training approved by the Construction Industry Licensing Board, which must include hurricane mitigation techniques, compliance with the Uniform Mitigation Verification Form, and completion of a proficiency exam
- Use hurricane mitigation inspectors who have undergone drug testing and background screenings
The Department may conduct criminal record checks of inspectors. Inspectors must submit a full set of fingerprints to the Department or to an authorized vendor, an entity, or agency.
Grant Award Limits
Specific limits apply to grant awards:
- The limit for roof-related projects is $11 per square foot, multiplied by the square footage of the replacement roof.
- Grants are limited to $1,000 per unit.
- The maximum grant contribution is limited to 50% of the project cost.
- The limit for opening protection-related projects grant contributions is a maximum of $750 per replacement window, not to exceed $1,500 per unit, and a maximum grant contribution of 50 percent of the total project cost.
- An association may receive grant funds for both roof-related and opening protection-related projects, but the maximum grant contribution is limited to $175,000 per association.
The DFS may not accept grant applications or maintain a waiting list for grants after the cumulative value of the grants awarded has fully obligated the appropriation, unless the Legislature provides express authority otherwise.
The Department will further adopt rules to govern the program, hurricane mitigation inspections and grants, mitigation contractors, and the training of inspectors and contractors.
This new legislation takes effect on July 1, 2024.
New Requirements for Citizens Property Insurance Corporation
In Florida, Citizens Property Insurance Corporation is a not-for-profit, tax-exempt government entity that provides property insurance to eligible Florida property owners who are unable to find insurance coverage in the private market. The Corporation requires that flood insurance be secured and maintained as a condition of coverage.
Appointments
As a result of recent legislation, the Corporation must appoint only licensed agents who, throughout their appointment with Citizens, also hold an appointment to write the same line or lines of business with at least three insurers that are authorized to write or renew property coverage within the state.170 Under prior law, only one other appointment was required. Citizens will notify agents currently appointed by Citizens if they violate the new law and will have the option of obtaining required appointments or transferring their Citizens policies to an eligible agent. The new requirement applies separately to each line of business the agent writes for Citizens, including personal residential, commercial residential, and commercial non-residential lines.
Secondary Residences – Eligibility
Effective in 2023, primary residences are ineligible for coverage through Citizens if an authorized insurer offered comparable coverage at a premium no more than 20 percent of the Citizens premium. Effective for policies renewing on or after July 1, 2024, the same restriction applies to residential risks that are not primary residences.171
These requirements take effect on July 1, 2024.
New Flood Disclosure
A new law requires property sellers to complete and provide a new flood disclosure to a prospective purchaser of residential real property at or before the time the sales contract is executed.172 The disclosure is as follows:
FLOOD DISCLOSURE
Flood Insurance: Homeowners’ insurance policies do not include coverage for damage resulting from floods. Buyer is encouraged to discuss the need to purchase separate flood insurance coverage with Buyer’s insurance agent.
(1) Seller has not filed a claim with an insurance provider relating to flood damage on the property, including, but not limited to, a claim with the National Flood Insurance Program.
(2) Seller has not received federal assistance for flood damage to the property, including, but not limited to, assistance from the Federal Emergency Management Agency.
(3) For this disclosure, the term “flooding” means a general or temporary condition of partial or complete inundation of the property caused by any of the following:
(a) The overflow of inland or tidal waters.
(b) The unusual and rapid accumulation of runoff or surface waters from any established water source, such as a river, stream, or drainage ditch.
(c) Sustained periods of standing water resulting from rainfall.
This new legislation takes effect on October 1, 2024.
Motor Vehicle Salvage
Florida law allows motor vehicle owners to retain possession of their vehicles in connection with a total loss settlement. Amended language to this part of the law provides that if the owner retains possession, he or she must within 72 hours after the vehicle becomes salvage—or the insurance company must within 72 hours after receiving the certificate of title—forward the certificate of title to the Department for processing, and the Department will issue a salvage certificate of title or certificate of destruction directly to the vehicle owner.173
This amended legislation takes effect on July 1, 2024.