Florida Property Insurance Reform 2022

The last two years have presented some big problems within the realm of property insurance in Florida. If you own a home or condo in Brevard County, this article is for you. Perhaps you, like many others, have been affected by this unstable property insurance market.

Policies have been denied or canceled, and premiums have risen to a price point that property owners are unable to pay. Over the last two years, the insurance industry has had underwriting losses that exceeded a massive $1 billion each year. Several notable insurance companies have been unable to pay their debts, have required midterm cancellations, have halted writing new policies or are in the process of liquidation. To put it plainly – it’s a messy crisis.

Thankfully, some relief is in sight!

Property Insurance Reform in Florida

Although the signed Senate Bill 2B put in place by Florida Gov. Ron Desantis won’t provide immediate relief from the current costs of home insurance, it will benefit policyholders in several ways.

• The bill will not allow for insurers to deny coverage for homes with a roof that is less than 15 years old. For homes with roofs that are older than 15 years, owners can request an inspection. The bill will also allow for roofs with 25% damage or less to be fixed, rather than fully replaced.
• While we’re “on the roof,” another aspect of the bill requires insurers to present an option for a lower roof deductible to help fight against fraudulent roof claims. These fraudulent claims increase rates for everyone.
• The bill creates a $2 billion reinsurance fund (R.A.P., Reinsurance to Assist Policyholders), which is basically insurance coverage for insurance agencies. This will help bolster insurance companies before the Florida hurricane season hits and requires that insurers lower their rates. Good news for policyholders!
• Property insurers now have to present a reasonable written explanation to policyholders detailing why a particular claim was denied, partially denied or paid.
• Another reason rates rose so sharply was due to frivolous litigation and fraudulent claims going forward, which increased rates. This bill aims to reduce all the bad faith & fraudulent claims set in motion to help mitigate rising rates.
• Another way the bill plans to stabilize the market is by providing $150 million for the My Safe Florida Home Program. This provides grants to homeowners in Florida for extra protection from hurricanes toward retrofitting, making homes safer and more resistant to hurricane damage. This can result in some premium discounts for property owners who participate in the program!

For condominium owners, there’s good news for you too! This bill (Senate Bill 4B) includes reforms to increase the safety of condominiums in Florida too.

• The bill requires inspections for all condos and coop buildings which are three stories or higher.
• Structural integrity reserve studies are required for buildings three stories or higher to lock in the financials necessary for future repairs to the structure of the building.
• The structural inspection reports and reserve studies performed on buildings are required to be a part of the association’s official record and are to be presented to potential purchasers of a unit, with the goal being to have more transparency.

For more information and specific detail of this bill, please visit: fl.gov’s article.

If you’ve been feeling the pains of the unstable property insurance market in Florida then this bill is a source of great news. Misty Morrison has been serving Brevard and The Beaches since 2004 and takes pride in providing the highest quality real estate services you can find! If you’re looking for property in Brevard County, contact Misty today!