Good news for Florida homeowners! After years of grappling with policy cancellations, unpaid claims, and soaring premiums— a situation that led to the “Florida Home Insurance Crisis”— significant changes are on the horizon! The culprit behind this crisis? Fraud, coupled with rising construction costs and unchecked lawsuits, which forced many insurers to withdraw from Florida or go bankrupt, leaving homeowners in a bind 😟💔. But there’s light at the end of the tunnel.
Introduced in 2019 and passed in December 2022, Florida Senate Bill 2-A is a promising step towards alleviating these struggles. This bill targets the rising cost of insurance claims and premiums that were previously putting homeowners insurance out of reach for many Floridians.
Senate Bill 2-A implements several measures to combat fraudulent claims and streamline the claims process, such as:
- Reducing the claim filing deadline ⏳.
- Obliging insolvent insurance companies to give a 45-day notice before cancelling policies 📅.
- Changing the rules around legal and court costs in insurance cases ⚖️.
- Prohibiting Assignment of Benefit (AOB) agreements, which previously allowed homeowners to sign over insurance benefits to a third party 🚫.
- Restricting policyholders from suing their insurance company unless a breach of contract has been found 💼.
Additionally, we can expect changes to the Citizens’ Insurance Corp., which may become a higher priced public option company of last-resort offering limited coverage to distressed risks that cannot find coverage elsewhere in t.
The cherry on top of these reforms is the introduction of the Florida Optional Reinsurance Assistance (FORA) program. Under FORA, insurance companies can purchase hurricane reinsurance at reasonable rates, thereby reducing the burden of increased costs on policyholders. This change is expected to lead to lower premiums for homeowners in the long run— a win-win🎉💰.
While these changes represent a beacon of hope, the future is still unfolding. But fear not, as a member of Trusted Choice, a network of independent insurance agents and brokers, Professional Insurance Services is here to navigate these changes and continue providing top-notch insurance solution 🤝🌴.
Stay tuned for more updates and remember, we’re here to make your insurance process effortless and stress-free. Ready for peace of mind? Get a free quote today and let us provide you the protection you need! 🛡️🕊️