{"id":2760,"date":"2023-02-09T17:38:07","date_gmt":"2023-02-09T17:38:07","guid":{"rendered":"https:\/\/www.homeinsuranceking.com\/blog\/?p=2760"},"modified":"2023-02-09T17:38:09","modified_gmt":"2023-02-09T17:38:09","slug":"florida-has-a-new-property-insurance-law-will-it-benefit-homeowners","status":"publish","type":"post","link":"https:\/\/www.gethomeinsurancequotes.com\/blog\/florida-has-a-new-property-insurance-law-will-it-benefit-homeowners\/","title":{"rendered":"Florida Has a New Property Insurance Law – Will it Benefit Homeowners?"},"content":{"rendered":"\n
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The Florida homeowners insurance market<\/a> has been in trouble for years now and the recent hurricane season that resulted in\u00a0Hurricane Ian<\/a>\u00a0hitting the west coast of Florida and\u00a0Hurricane Nicole hitting the east coast weeks later certainly hasn\u2019t helped. Insurers that have been struggling for years had a hard time covering all the claims that came out of these storms, leaving them financially weaker.<\/p>\n\n\n\n

On January 1, Florida put in place some new laws that were designed to prop up the homeowners insurance market. Let\u2019s have a quick look at the changes and how they may or may not actually help homeowners in the Sunshine State.<\/p>\n\n\n\n

Why is Florida Homeowners Insurance Market in Crisis?<\/strong><\/h2>\n\n\n\n

There are a number of reasons that insurers are struggling in Florida, but fraud is the largest, and by far most expensive. <\/p>\n\n\n\n

Insurance fraud is a major issue in Florida. Less than honest roofing companies offer free roof inspections which always turn up a problem. Homeowners are asked to sign an Assignment of Benefits<\/a> form which allows the roofing company to file a claim on the homeowners policy.<\/p>\n\n\n\n

Typically, the claim is denied or determined to be much less severe than the dishonest roofer claims. The roofing company partners with a shifty lawyer who sues the insurance company. It is usually more cost effective to settle than go to court and Florida also has a “one-way attorney fee” system, which means that the insurer must pay the legal fees of a plaintiff.<\/p>\n\n\n\n

This kind of fraud happens daily in Florida. According to recent statistics, Florida makes up roughly 8% of all national homeowners claims nationwide but is responsible for roughly 80% of the national total of insurance related lawsuits. <\/p>\n\n\n\n

All of this fraud has forced many insurers to raise their rates, not offer coverage in certain areas or pull out of the state altogether. It has also resulted in many insurers going under. <\/p>\n\n\n\n

What the New Law Changes<\/strong><\/h2>\n\n\n\n

Legislators in Florida have been trying to fix the insurance market for years but have continued to fail to bring costs under control. Their most recent effort resulted in Bill SB 2-A<\/a>, which is aimed at protecting both insurance companies as well as homeowners.<\/p>\n\n\n\n

Here are a few things the new law provides:<\/p>\n\n\n\n