The new legislation is taking aim at the rapidly rising cost and reducing availability of property coverage.
Skyrocketing home insurance rates in Florida have become a massive problem for many property owners in the state who are struggling to be able to find coverage they can afford.
The state has been teetering on the edge of crisis, and the situation is continuing to worsen recently.
Depending on the area, Florida home insurance rates have been spiking to the point that they are well out of reach of many property owners. Insurers have been leaving the state, going bankrupt, or choosing not to sell any more new policies there. The insurer of last resort, state-backed Citizens Insurance, has swelled to record proportions, well beyond what it was initially created to carry.
That said, three new laws have recently gone into effect in the state, aimed to help keep rates within a range that residents can afford. The laws have the potential to impact what policyholders pay. The problem is that the impact – which is expected to be a measurable one – won’t be felt right away.
Florida home insurance customers are already struggling to find coverage and seek immediate solutions.
Senate Bill 7052 includes banning insurers from being able to change an adjuster’s report without offering a detailed explanation as to why the alterations were made. That same law also requires that the property owner be issued a copy of that report.
The second law to go into effect recently is an expansion of the discount programs available through insurers when property owners take steps to effectively harden a home against wind damage. The idea is to have the premiums more accurately reflect the reduction of risk that wind presents to their home, if they’ve taken steps to prevent that damage.
Providing home insurance discounts to homeowners who make efforts to protect their homes can help to not only reduce premiums but also to prevent or reduce damage, which prevents or reduces claims – and therefore costs to the insurer. These efforts can include steps such as choosing a different type of shingle when the time comes to replace a roof.
FAQs about Senate Bill 7052
What is Senate Bill 7052?
Senate Bill 7052, also known as the Insurer Accountability Act, is a legislation that requires residential property insurers to create and use claims-handling manuals that comply with the Insurance Code. It aims to increase the accountability of insurance companies.
Who introduced Senate Bill 7052?
The Insurer Accountability act, Senate Bill 7052, was introduced by Senator Travis Hutson.
When was Senate Bill 7052 signed into law?
Senate Bill 7052 was signed into law on May 31, 2023.
What are the main provisions of Senate Bill 7052?
The bill includes provisions to increase the accountability and oversight of insurance companies by the Office of Insurance Regulation’s (OIR). It also enacts several consumer protection measures.
How does Senate Bill 7052 impact insurance companies?
The bill imposes stricter requirements and conditions for certain insurer market conduct examinations. It also requires insurance companies to be more transparent and accountable in their claims handling process.
How does Senate Bill 7052 protect consumers?
By increasing the accountability of insurance companies, the bill protects consumers from potential fraudulent practices by insurers. It also enforces consumer protection measures that increase competition.
Is there a similar bill in other states?
Yes, in New York, Senate Bill 7052 – the “Comprehensive Insurance Disclosure Act (“CIDA”) was signed into law at the close of 2021, which requires all parties to provide notice and proof of the existence and limits of any insurance policy
