The Unfavorable Insurance Industry Legislation Policyholders Need to Know About

In December, Florida Legislators held a special session during which they passed a new bill that was signed into law in an attempt to stabilize Florida's troubled property insurance industry.
 
Unfortunately for Florida policyholders, it falls far short of its intended purpose, it is not so consumer friendly and ultimately favors the insurance industry.  
 
The legislation raises many issues and questions, making it even more important that you have a qualified public adjuster on your side to obtain a proper insurance claim settlement.
 
What was the Intended Purpose?
According to the Insurance Information Institute, Florida homeowners, who already pay some of the highest insurance premiums in the nation, have witnessed average rate increases of 33%, with some receiving quotes for increases of up to 10 times their current premiums.
 
In light of statistics showing that Florida accounts for 7% of all property insurance claims but 74% of all property insurance litigation, the legislature responded with changes outlined in the bill.
 
What Changes Can be Expected?
Property insurers have long argued that litigation encourages cost increases and that so-called "one-way attorney fees" are to blame. The new legislation takes away one-way attorney fees, which mandated that insurance company’s cover the legal costs of policyholders who prevail in their insurance claims.  
 
Unfavorable Changes for Policyholders:

• If you are in a dispute with your insurance company and must retain legal counsel, you will now have to absorb the full cost of your attorney fees, making it less likely that you will be left with enough of a settlement to repair your property
• You now have 1 year, instead of 2 years, to file a property damage insurance claim
• You now have 18 months, instead of 3 years, to file a supplemental property damage claim
• Mandatory Binding Arbitration … this will now be offered within a policy to receive a premium discount

 
What You Need to Know Before Selecting a Policy with Binding Mandatory Arbitration:

• Arbitration is a binding process to settle an insurance claim dispute.  Whether the decision by the arbitration panel is good, bad, or neutral for a policyholder, the results are binding, and your claim will be final
• The premium discount offered for the mandatory binding arbitration endorsement should be a significant credit or discount to be worth surrendering certain rights under your insurance policy
• You must also be notified in writing of all the rights you are surrendering for the premium discount
• You must also be offered an optional policy that does not require you to partake in a mandatory binding arbitration

 
Policyholders Insured with Citizens Property Insurance Will See Increases
 
Citizens Property Insurance will now require that all their policyholders carry flood insurance.  If you receive a comparable coverage offer from a private insurance carrier, even if the coverage is more costly, you will not be eligible for coverage with Citizens at renewal. If you own property and it is not your primary residence, your insurance rates will increase. 
 
Some Favorable Changes for Policyholders:

• Insurance companies now have 60 days, instead of 90 days, to pay or deny an insurance claim
• Insurance companies now have 30 days, instead of 45 days, to conduct an inspection of your damaged property
• Insurance companies now have 7 days, instead of 14 days, to begin the claim investigation process which includes communication via telephone, email, USPS mail or facsimile
• Removal of Assignment of Benefits (AOB): the AOB allowed unlicensed or unscrupulous contractors to take over and assume your insurance claim benefits and payments.

 
Unbeknownst to many policyholders, these contractors were filing lawsuits against insurance companies to recover payment under their AOB.  This certainly increased the amount of lawsuits that were filed when there was a claim dispute, and this only resulted in higher premiums for policyholders.
 
Hire a Public Adjuster to Help
The revisions contained in the bill are an overcorrection that strips homeowners of their rights and leaves property owners at the mercy of their insurance company.
 
Now more than ever, policyholders need a reputable partner like Reliant Insurance Adjusters to ensure your rights are protected and get you the claim settlement you deserve.