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Homeowners Insurance Laws as of 2005

The following state laws were part of a Florida Senate bill, which was signed into law by then Gov. Jeb Bush in June 2005. The nuances of the bill were deliberated for months in both the House and Senate.

The changes came about due to the chaotic nature of the 2004 hurricane season in which Florida was struck by three hurricanes. The general public demanded some relief from insurance claim woes and red tape.

Currently, both the Florida Senate and House are deliberating to once again alleviate the concerns of Floridians who feel the crunch of skyrocketing insurance costs.

Homeowners Insurance Laws as of June 2005 are as follows:

  • Prohibit insurance companies from not renewing homeowners' policies until 90 days after a hurricane-damaged home is completely repaired.
  • End the insurer practice of paying only the lower actual cash value for repairs and contents, instead requiring the insurer to pay the full replacement cost up front.
  • Create a mandatory policy checklist an insurance agent must fill out, detailing what a policy covers and does not cover.
  • Increase to 50 percent the amount insurers must offer to pay for a home required to be rebuilt to updated and more expensive building codes.
  • Provide funding for more staff to review rate decisions made by Florida's Office of Insurance Regulation.
  • Require insurance companies to spell out how much a hurricane deductible could potentially cost a policyholder and require disclosure of all available discounts. In December, legislation limited hurricane deductibles to one per season.
  • Require a public hearing for requested rate hikes exceeding 15 percent.
  • Order Citizens Property Insurance Co., the state-run insurer of last resort, to improve its customer response and service.
  • Require insurers to develop standard, apples-to-apples policies to be easily shopped and compared from company to company.
  • Expedite the claims process by requiring an insurer to pay a claim or begin communication with the insured regarding the claim within 14 days.