The 2016 regular session of the Florida Legislature concluded on Friday, March 11, 2016. Although the assignment of benefits and appraisal were the targets of scrutiny in the 2016 regular session, only one bill passed.
The Legislature passed Senate Bill 1274 which impacts Florida property insurance coverage. The provisions of the bill become law on July 1, 2016. Senate Bill 1274 was signed by Governor Scott on April 6, 2016. This bill contains minor changes in, and additions to, Florida’s property insurance laws that will impact the underwriting, adjustment, and litigation of insurance claims. Below are a few of the significant changes contained in Senate Bill 1274:
The bill creates Florida Statute s. 627.7151 that allows authorized carriers to offer “limited sinkhole coverage” policies. It is only applicable to personal lines residential coverage (not commercial lines residential or commercial lines nonresidential). Limited sinkhole coverage (if offered):
The form utilized by the insurer for limited sinkhole coverage does not have to be approved by the Florida Office of Insurance Regulation. However, when obtaining this coverage, the policyholder is required to sign a form acknowledging that the policy is a “repair-only” policy.
Our firm’s first-party property coverage department will be pleased to speak with you now or in the future should you face questions regarding the changes to the statutes, how they may impact individual claims, or recent decisions interpreting insurance policies. Please feel free to call upon Lee Craig, Doug Berry, Bill Lewis, Scott Frank, Pablo Cáceres, Tom Keller, John Garaffa, David Maldoff, Rick Parker (Tallahassee), Janice Buchman, Curt Allen, Christopher Ramey, Troy Seibert, Timothy Engelbrecht, or Tracy Jurgus (Miami) at any time as questions arise.