| The latest from our Florida Legislature by Carol Bowen, JD I Chief Lobbyist Associated Builders and Contractors of Florida & Vice President of Government Affairs Associated Builders and Contractors Florida East Coast Chapter. |
| What Happened In Tallahassee This Week?The Legislature returned to Tallahassee this week with the sole purpose of addressing the current situation and circumstances of the residential property market in Florida. An additional item was added “to the call” for discussion and deliberation midway through Tuesday, May 24th when the Senate and House both agreed to take up Surfside Legislation that had failed in the final hours of the 2022 session. Below, you will find a complete breakdown of legislation that passed, and the impact to our industry. Senate Bill 2D on Property InsuranceThe main purpose of this legislative effort is to try and calm the existing market. To prevent any additional carriers from dropping coverage and leaving Florida, to decrease fraud and abuse and to attempt to drive down prices for taxpayers. This bill does the following: Reinsurance to Assist Policyholders (RAP) Program – authorizes a $2 billion dollar reimbursement layer of reinsurance for hurricane losses directly below the mandatory layer of the Florida Hurricane Catastrophe Fund. Specifies that insurers do not pay premiums for RAP coverage, but must reduce rates to reflect savings. My Safe Florida Home Program – appropriates $150 million to program to provide hurricane mitigation inspections and matching grants for the performance of hurricane retrofitting on homestead single family homes with value of $500,000 or less. Contractor Solicitation of Roof Claims – prohibits contractors from making written or electronic communications that encourage or induce a consumer to contact a contractor or public adjuster for the purposes of making a property insurance claim for roof damage unless the solicitation provides: that the consumer is responsible for the payment of any deductible, it is insurance fraud |
1 : For a contractor to pay or waive an insurance deductible, and it is insurance fraud to intentionally files an insurance claim containing false, fraudulent or misleading information.
- Separate Roof Deductibles – allows property insurers to include a separate roof deductible and an option to decline said deductible by signing documentation approved by OIR. If a roof deductibleis added to the policy at renewal, the insurer must provide notice of change in policy terms andallow the policyholder to decline the separate roof deductible.
- Roofs-Insurer Underwriting – prohibits an insurer from refusing to issue or refusing to renew ahomeowner’s insurance policy because the roof is more than 15 years old.
- Insurer Claims Handling – requires property insurers to conduct any physical inspection of theproperty related to a claim within 45 days of receiving proof of loss statements. This deadlinedoes not apply to hurricane claims.
- Civil Remedy – requires a claimant to establish a property insurer breached the insurance contractin order for the claimant to prevail in a bad faith claim for extracontractual damages.
- Attorney Fees – Assignment of Benefits (AOB) – prohibits assignment of the right to obtainattorney fees in suits arising out of a property insurance policy to persons other than a named or omnibus insurance or a named beneficiary under the policy. Assignments may occur, but the assignee vendor may not recover attorney fees in suits against the insurer.
- Attorney Fees – Fee Multipliers – attorney fee multipliers may only be awarded under rare and exceptional circumstances with evidence that competent counsel could not be hired in a reasonable manner.
- Attorney Fees – Dismissal for Failure to Provide Notice – A defendant insurer may obtain attorney fees and costs associated with securing a dismissal without prejudice for failure to provide the required notice of intent to initiate litigation at least 10 days before filing a suit against a property insurer.
- Assignment of Benefits (AOB) – makes new requirements to langrage and assignments to increase clarity and transparency.
- Regulation of Insurers and Insurer Transparency – establishes a series of new reporting requirements for the Office of Insurance Regulation (OIR).Senate 4 D – Building SafetyWhen first filed, this legislation dealt only with building code regulations and rules relating to
roofs. However, at midday on Tuesday of this week, the Florida House and Senate mutually agreed to “expand the call of session” to include language on Condo-Safety that reflected the Surfside bills that had failed to pass in the final hours of the original 2022 Legislative Session. The negotiated and agreed to language was added on to Senate Bill 4D as an amendment. Taken together, the bill now does the following:
- Requires the FL Building Code to provide that when 25% or more of a roofing system or roof section is being repaired, replaced, or recovered, only the portion of the roofing system or roof section undergoing such work, must be constructed in accordance with the current code in effect at that time.
- Establishes a statewide structural inspection program for aging condominium and cooperative buildings to ensure that such buildings are safe.
- Establishes that any condo unit, three stories in height or more, must have a “milestone inspection” by December 31st of the year in which the building reaches 30 years of age, based on the date the certificate of occupancy was issued. If the building is withing 3 miles of the coastline then the first milestone inspection must be done withing 25 years of when the CO was issued. In both instances, inspections must be repeated every 10 years after the initial one
2. It will be up to local jurisdictions to provide written notice to the condo association that a milestone inspection is due by certified mail, return receipt requested
o The milestone inspection must take place within 180 days of receiving notice
o A milestone inspection takes place in two phases. The first must be completed by a licensed architect or engineer and must include a visual inspection of habitable and uninhabitable areas including major structural components. The second takes place if any substantial structural deterioration is identified during phase one.
o The bill establishes details of how the findings of the inspection are delivered and shared by the architect or engineer
o The bill establishes details, deadlines and requirements of how quickly repairs to a building must take place if and when structural issues are identified as part of the inspection process
o Notice requirements to condo leadership along with policies and penalties are established o The Florida Building Commission shall review the milestone inspection requirements and make recommendations the Legislature to ensure the inspections are sufficient to determine the structural integrity of a building.
o Defines structural integrity reserve study to mean a study of the reserve funds required for future major repairs and replacement of the common areas based on a visual inspection of the common area.
o Establishes rules and regulations between how studies are conducted and how long they must be maintained.
o Establishes items where maintenance may not be deferred
o Establishes that, effective December 31, 2024, the members of a unit-owner controlled association may not determine to provide no reserves, or less reserves than required by this legislation for any of the following items – roof, load bearing walls or other primary structural members, floor, foundation, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior paint, windows, and any item that has a deffer maintenance expense or replacement cost that exceeds $10,000.
o Before a developer turns over control of an association to unit owners other than a developer, the developer must have a structural integrity reserve study completed for each building on the condo property that is three stories or higher in height.
o Establishes a series of new reporting requirements from deadlines, to notices, to copies kept on hand, to make public and readily available, etc.
Governor DeSantis has signed both of these bills into law.