Florida laws on homeowners insurance has undergone some significant changes in recent years.
Laws about homeowners' insurance in Florida provide guidelines for insurers selling their product in the state. Florida's hurricane prone location makes it imperative for homeowners to understand coverage options provided by insurers eligible to do business in the state. The Florida Office of Insurance Regulation has the responsibility for oversight of insurance companies.
Hurricane Deducible
Florida's insurance laws require insurers to offer homeowners options for deductibles on hurricane losses: equal to $500, 2 percent, 5 percent, and 10 percent of the primary structure limits contained in the policy. Deductible less than $500 do not apply. The Florida Insurance Council states that 2 percent of Florida residents select the 2 percent deductible. This means a policyholder will pay the first $4,000 for hurricane damage with a policy limit of $200,000.
Insurer Products
Insurers must offer homeowners a property coverage product that repairs or replaces the structure based on the replacement costs up to the limits of the policy, instead of actual cash value. The replacement value does not include expenses associated with local regulations regarding construction, property demolition or waste removal.
Insurance companies must also offer a product for replacement costs, but also taking into account the costs involved with local regulations concerning construction, tearing down property and removing debris. The homeowner has the choice of selecting coverage that caps the amount to 25 percent or 50 percent of the dwelling coverage limits.
Determining Coverage
An insurer may not deny coverage to a homeowner based only on the age of the dwelling or structure. The company must take into account the wind resistance of the building. In addition, the insurer has to take into consideration the action taken by the owner to safeguard the dwelling against hurricane damage.
Claims
Generally, homeowners' insurance companies have 14 calendar days in which to acknowledge receipt of a homeowner's claim. If the claimant does not make the assertion in writing, the insurer must make a note in the homeowner's file indicating receipt. Communication made by the policyholder to the agent constitutes notice to the insurer. For covered claims, the insurer must provide the claimant with the required forms and instructions.
The insurer must also give the policyholder the phone number of the appropriate contact person. Usually, an insurer must commence an investigation within 10 days of receiving proof of loss statements. The insurer must pay or deny the claim within 90 days of receiving a notice of claim.
Insurers and Contractors
Florida statutes permit insurance companies to contract with building contractors specializing in hurricane mitigation, to perform repair work for its policy holders. The company has to guarantee the contractor's work. However, the law does not make the insurer responsible for the actions of the contractor.
Overpayment of Premium on Personal Property
Personal property damaged or a total lost determined to be less than the amount actually insured, requires the insurance company to return a portion of the premium. The unearned premium constitutes an overpayment of insurance and may result in a legal claim against the company.
