The Florida Senate had passed the legislation on Tuesday. The bills will now head to the desk of Gov. Ron DeSantis.
The bills are aimed at stabilizing the state’s troubled market. The proposals included in the package would ban insurance companies from automatically refusing coverage to homeowners with older roofs. A $2 billion reinsurance fund will be created to help insurance companies obtain coverage. It also provides state dollars to stormproof homes and limits attorneys fees in lawsuits.
“One of the most important parts of this legislation is the update to roofing policies, which ensures there is a clear understanding between homeowners and insurance companies about roof repair and replacement coverage and costs,” State Sen. Jim Boyd said. “We are protecting homeowners from being canceled when a roof is less than 15 years old, or when an inspection shows an older roof still has plenty of useable life left, and updating the building code to protect against unnecessary and costly roof replacements that, when part of an insurance claim, impact everyone’s premiums.”
Now that both the House and Senate have passed the bills, the insurance reforms could be signed by Gov. DeSantis by the close of business Wednesday.
Lawmakers had previously asked how the bills address fraud. Industry experts say fraud in litigation drives up rates.
“I think currently in law we are addressing fraud through DFS (Florida Department of Financial Services,)” said State Rep. Jay Trumbull
Trumbull said DFS will be able to hire 17 extra investigators to tackle fraud, under the proposal.