Florida Property Insurance Updates: September 2023
Here are some of the latest changes to Florida property insurance policies:
Assignment of Benefits (AOB): AOB is a process in which a homeowner can assign their insurance benefits to a third party, such as a contractor, to repair their home after a storm. AOB has been a major source of fraud in the Florida property insurance market, and a new law that went into effect on January 1, 2023, prohibits AOB for residential and commercial property claims.
Prompt Payment: A new law that went into effect on March 31, 2023, requires insurance companies to pay or deny claims within 60 days of receiving them, down from the previous 90-day deadline.
Roof Replacement: A new law that went into effect on July 1, 2023, requires insurance companies to pay for the full replacement cost of a roof that is more than 10 years old and damaged in a storm. Previously, insurance companies could depreciate the value of a roof and pay less than the full cost of replacement.
Citizens Property Insurance Corporation (Citizens): Citizens is the state-run insurance company of last resort for homeowners in Florida. A new law that goes into effect on November 1, 2023, will allow Citizens to increase rates on new policies by up to 50%. The law also prohibits new Citizens policies from being issued after November 1, 2023, to homeowners with other insurance options available.
These are just some of the latest changes to Florida property insurance policies. It is important to note that the Florida property insurance market is constantly evolving, and it is important to consult with an insurance agent to ensure that you have the right coverage for your needs.
Here are some additional tips for Florida homeowners:
Review your policy regularly to make sure you understand your coverage and limits.
Shop around for insurance every year to get the best possible rate.
Consider raising your deductible to lower your premiums.
Take steps to mitigate your risk of damage, such as trimming trees and installing storm shutters.
By following these tips, you can help protect your home and your finances in the event of a storm.