Good news for Florida homeowners! After years of grappling with policy cancellations, unpaid claims, and soaring premiumsβ a situation that led to the “Florida Home Insurance Crisis”β 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 ππ. But there’s light at the end of the tunnelβ.
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 Floridiansβ.
Senate Bill 2-A implements several measures to combat fraudulent claims and streamline the claims process, such as:
- Reducing the claim filing deadline β³.
- Obliging insolvent insurance companies to give a 45-day notice before cancelling policies π .
- Changing the rules around legal and court costs in insurance cases βοΈ.
- Prohibiting Assignment of Benefit (AOB) agreements, which previously allowed homeowners to sign over insurance benefits to a third party π«.
- Restricting policyholders from suing their insurance company unless a breach of contract has been found πΌ.
Additionally, we can expect changes to the Citizensβ 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 tβ.
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 runβ a win-winβππ°.
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 solutionβ π€π΄.
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! π‘οΈποΈ