SB 1282 — Residential Property Insurance

Florida Senate - 2018 CS for SB 1282 By Senatorthe TaddeoCommittee 40-01437-18on 20181282__Banking Aand billInsurance; to be entitled An act relating to residential property insurance;

and Senator Taddeo 597-02620-18 20181282c1 A bill to be entitled An act relating to residential property insurance;

revising a mandatory homeowner’s insurance policy disclosure regarding the absence of law and ordinance and flood insurance coverage;

requiring theinsurers homeownerissuing such policies to placeinclude histhe ordisclosure herwith initialsthe onpolicy adocuments specifiedupon acknowledgment;the initial issuance of the policy and each renewal;

1011 Be It Enacted by the Legislature of the State of Florida:

1213 Section 1. Subsection (4) of section 627.7011, Florida Statutes, is amended to read:

offer of replacement cost coverage and law and ordinance coverage.— (4) A(4) Upon homeowner’sthe insuranceinitial policyissuance mustand includeeach inrenewal boldof typea nohomeowner’s smallerinsurance thanpolicy, 18the pointsinsurer theshall followingmust statement,include andwith the homeownerpolicy mustdocuments, placein hisbold ortype herno initialssmaller inthan 18 points, the spacefollowing indicated:statement:

2022 “LAW AND ORDINANCEORDINANCE: COVERAGE IS AN IMPORTANT COVERAGE THAT YOU MAY WISH TO PURCHASE.

LAW AND ORDINANCE COVERAGE IS AN IMPORTANT COVERAGE THAT YOU MAY WISH TO PURCHASE.

PLEASE DISCUSS WITH YOUR INSURANCE AGENT.” 26 “FLOOD INSURANCE:

HURRICANEYOUR HOMEOWNER’S INSURANCE POLICY DOES NOT INCLUDE COVERAGE FOR DAMAGE RESULTING FROM FLOOD, EVEN IF HURRICANE WINDS AND RAIN CAUSED THE FLOOD INSURANCE.TO OCCUR.

WITHOUT SEPARATE FLOOD INSURANCE THIS COVERAGE, YOU MAY HAVE UNCOVERED LOSSES.LOSSES CAUSED BY FLOOD.

PLEASE DISCUSS THE NEED TO PURCHASE SEPARATE FLOOD INSURANCE COVERAGE THESE COVERAGES WITH YOUR INSURANCE AGENT.AGENT.” 37 The intent of this subsection is to encourage policyholders to purchase sufficient coverage to protect them in case events excluded from the standard homeowners policy, such as law and ordinance enforcement and flood, combine with covered events to produce damage or loss to the insured property.

28 ...(insert initials)...I UNDERSTAND THAT IF I PURCHASE HURRICANE INSURANCE, IT DOES NOT INCLUDE FLOOD INSURANCE.” 32 The intent of this subsection is to encourage policyholders to purchase sufficient coverage to protect them in case events excluded from the standard homeowners policy, such as law and ordinance enforcement and flood, combine with covered events to produce damage or loss to the insured property.

627.7011, Florida Statutes, applies to policies issued or renewed on or after July 1, 2018.2019.

Section 3. This act shall take effect July 1, 2018.2019.