SB 408 Signed into Law

posted Jul 6, 2011, 7:07 AM by se bi
Governor Rick Scott signed SB 408 into law on May 17, 2011. 

Below you can find some of the changes that will take place

  • Expanding exclusions from losses covered by the Florida Hurricane Catastrophe Fund to include losses caused by perils other than a covered event, such as fire, theft, flood or rising water, as well as amounts paid for waivers of deductibles and bad faith awards.
  • Limiting public adjuster compensation for reopened or supplemental claims to 20 percent of the claim payment (10 percent for Citizens Property Insurance Corp. claims) and requiring additional disclosure statements and notices to certain parties. 
  • Requiring insurers to provide two replacement cost coverage options for payment of personal property insurance claims. The first option pays the full replacement cost without reservation. The second option pays the depreciated value and holds back the remainder of coverage until the policyholder provides receipts.
  • Requiring a policyholder to file windstorm and hurricane claims within three years

SB 408 also addresses sinkhole claims, which have proliferated in Florida in recent years. Carriers sought to have the mandatory coverage language deleted but settled for language specifically defining “structural damage” to narrow the definition of a sinkhole loss. Additionally, the new bill requires a policyholder to pay 50 percent of sinkhole testing costs up to $2,500 if the policyholder requests testing after an insurer denies the sinkhole claim; sinkhole claims must be filed within 2 years of the covered loss.