Gulfstream Insurance Adjusters, Inc.

residents can pick up free food and ask questions in person on the tomorrow, Saturday, April 8th. If you are at risk of losing coverage and are in the area, the folks from Enroll SWFL will be onsite.

Special Legislative Session Starts Next Week

Homeowners were hoping this session would help mitigate the property insurance crisis current facing the state. Instead, the taxpayers will continue to bail out insurers, rates will likely go up for a lot of folks in the state, and insurers will avoid lawsuits.

Here’s what’s in the proposed bills:

👉Citizens Insurance:
-The changes will be major for the more than 1 million Citizens customers - many of them in South Florida - including making it easier to force customers to leave Citizens and pay higher rates with other carriers.

-Citizens customers who purchase residential coverage for their home will be mandated to purchase separate flood coverage in order to be eligible.

-The bill would remove current rate limits for non-primary residence, i.e. a vacation home, 2nd home for snowbirds etc. to rate hikes of up to 50%. This clause, however, would not apply to rental property where a tenant lives at least 9 months a year

👉Optional Reinsurance:
-The legislation creates another state-created reinsurance program - Florida Optional Reinsurance Assistance program (FORA) which allows insurance companies to purchase reinsurance at "reasonable" rates, with $1 billion from the state's general revenue fund (money from sales taxes & other state taxes) and premiums paid to FORA.

👉Filing Claims:
-The legislation also reduces the time homeowners have to file claims with their insurer from 2 years to 1 year

👉Limited Discounts:
-Homeowners would get a discount or credit on their bills IF they give up their right to sue and agree to mandatory binding arbitration instead

👉Quicker Payout - Except after Hurricanes (lol):
-The legislation does speed up time that insurers must pay or deny a claim as well as respond to policyholders. But the proposal to cut the time to pay/deny claims can be extended if there are certain factors inc. the governor declaring a state of emergency (so like a hurricane)

Additional Provisions:

👉🏼Allows the Office of Insurance Regulation to use its discretion to issue fines and suspend or revoke an insurer's certificate of authority if the insurance company engages in unfair trade practices related to appraisals.

👉🏼Requires insurers to review and acknowledge claim communication and begin investigations within seven days, instead of two weeks

👉🏼Cuts the time for insurers have to conduct a physical inspection from 45 days to 30 days