Florida Property Insurance Reform

Florida Governor Charlie Crist signed the Homeowner’s Bill of Rights, better known as property insurance reform, this week. The bill provides protection for Florida homeowners, and will assist in keeping insurance costs affordable.

Beginning July 1, 2008 the following reforms will go into effect:

• The rate freeze is extended from January 2009 to January 2010 for Citizens Property Insurance Corp., the state’s insurer of last resort.

• Properties up to $2 million are now allowed to be covered under Citizens Insurance. It previously allowed properties with replacement value of up to $1 million to be covered. This includes single family, as well as condo units.

• Citizens’ policyholders of property valued over $500,000 in wind-borne areas are required to disclose the property’s windstorm mitigation rating to prospective buyers.

• Fines are increased for violations of the insurance code by private insurers.

• The provision that insurers get state approval before raising property insurance rates is extended to January 2010.

• Insurers are required to notify state regulators 90 days before dropping more than 10,000 homeowner policies in a year.

• Insurers are required to use state-approved methods to predict the risk of hurricanes, a key factor in setting rates.

If you are interested in obtaining a license to sell property insurance or any other type of insurance or you need continuing education, please visit Learninsurance.com.