Florida Senate - 2024 CS for SB 1104 By the Committee on Judiciary; and Senator Bradley 590-02908-24 20241104c1 1 A bill to be entitled 2 An act relating to policy cancellations and 3 nonrenewals by property insurers; amending s. 4 626.9201, F.S.; prohibiting insurers from canceling 5 and nonrenewing, within certain timeframes, policies 6 covering personal residential or commercial 7 residential properties damaged by hurricanes or wind 8 losses; providing exceptions; providing construction; 9 authorizing the Financial Services Commission to adopt 10 rules and the Commissioner of Insurance Regulation to 11 issue orders; requiring that certain policies contain 12 similar terms under certain circumstances; amending s. 13 627.4133, F.S.; prohibiting insurers from canceling 14 and nonrenewing, within certain timeframes, policies 15 covering personal residential or commercial 16 residential properties damaged by hurricanes or wind 17 losses; providing that such prohibition applies to 18 flood damages caused by hurricanes under certain 19 circumstances; revising exceptions; providing 20 construction; requiring that certain policies contain 21 similar terms under certain circumstances; providing 22 an effective date. 23 24 Be It Enacted by the Legislature of the State of Florida: 25 26 Section 1.Paragraph (c) is added to subsection (2) of 27 section 626.9201, Florida Statutes, to read: 28 626.9201Notice of cancellation or nonrenewal. 29 (2)An insurer issuing a policy providing coverage for 30 property, casualty, surety, or marine insurance must give the 31 named insured written notice of cancellation or termination 32 other than nonrenewal at least 45 days before the effective date 33 of the cancellation or termination, including in the written 34 notice the reasons for the cancellation or termination, except 35 that: 36 (c)An insurer may not cancel or nonrenew a personal 37 residential or commercial residential property insurance policy 38 covering a dwelling or residential property located in this 39 state: 40 1.For a period of 90 days after the dwelling or 41 residential property has been repaired, if such property has 42 been damaged as a result of a hurricane or wind loss that is the 43 subject of the declaration of emergency pursuant to s. 252.36 44 and the filing of an order by the Commissioner of Insurance 45 Regulation. Damage under this subsection includes flood damage 46 caused by a hurricane if flood is a covered peril under the 47 personal residential or commercial residential property 48 insurance policy. If flood is not a covered peril under the 49 commercial property insurance policy and the property has been 50 damaged as a result of flood caused by a hurricane, an insurer 51 may not cancel or nonrenew the personal residential or 52 commercial residential property insurance policy until the 53 earlier of when the property has been repaired or 18 months 54 after the date of loss. 55 2.However, an insurer or agent may cancel or nonrenew such 56 a policy before the repair of the dwelling or residential 57 property: 58 a.Upon 10 days notice for nonpayment of premium; or 59 b.Upon 45 days notice: 60 (I)For a material misstatement or fraud related to the 61 claim; 62 (II)If the insurer determines that the insured has 63 unreasonably caused a delay in the repair of the dwelling; or 64 (III)If the insurer has paid the policy limits for a loss 65 to the insured dwelling under a personal residential property 66 insurance policy, or policy limits for a loss to each insured 67 structure that was damaged under a commercial residential 68 property insurance policy. 69 3.If the insurer elects to nonrenew a policy covering a 70 property that has been damaged, the insurer must provide at 71 least 90 days notice to the insured that the insurer intends to 72 nonrenew the policy 90 days after the dwelling or residential 73 property has been repaired. This subsection does not prevent the 74 insurer from canceling or nonrenewing the policy 90 days after 75 the repairs are complete for the same reasons the insurer would 76 otherwise have canceled or nonrenewed the policy but for the 77 limitations of this subsection. The commission may adopt rules, 78 and the Commissioner of Insurance Regulation may issue orders, 79 necessary to implement this subsection. 80 4.For purposes of this subsection: 81 a.A structure is deemed to be repaired when the following 82 persons have inspected and certified or attested to the 83 completion of the repairs: 84 (I)A home inspector licensed under s. 468.8314; 85 (II)A building code inspector certified under s. 468.607; 86 (III)A general, building, or residential contractor 87 licensed under s. 489.111; 88 (IV)A professional engineer licensed under s. 471.015; or 89 (V)A professional architect licensed under s. 481.213. 90 b.If a policy is extended or renewed to comply with this 91 subsection or with any other provision of the Commissioner of 92 Insurance Regulations order, the policy must contain similar 93 policy terms as the policy being extended or renewed. However, 94 this subsection does not impact current law with regard to the 95 rates insurers may charge for policies extended or renewed under 96 this subsection. 97 c.Flood damage that is not communicated to the insurer and 98 the agent of the insurer before the expiration of the policy is 99 presumed nonexistent and may not be construed to alter any terms 100 of a policy, create a separate cause of action, or create any 101 additional duty on the part of the insurer or an agent of an 102 insurer to the insured. 103 5.This subsection does not affect the provisions of s. 104 95.11 or s. 627.70132. 105 6.This paragraph is not intended to revise or modify any 106 provision of an emergency order issued by the office before July 107 1, 2024. 108 Section 2.Paragraph (e) of subsection (2) of section 109 627.4133, Florida Statutes, is amended to read: 110 627.4133Notice of cancellation, nonrenewal, or renewal 111 premium. 112 (2)With respect to any personal lines or commercial 113 residential property insurance policy, including, but not 114 limited to, any homeowner, mobile home owner, farmowner, 115 condominium association, condominium unit owner, apartment 116 building, or other policy covering a residential structure or 117 its contents: 118 (e)1.An authorized insurer may not cancel or nonrenew a 119 personal residential or commercial residential property 120 insurance policy covering a dwelling or residential property 121 located in this state: 122 a.For a period of 90 days after the dwelling or 123 residential property has been repaired, if such property has 124 been damaged as a result of a hurricane or wind loss that is the 125 subject of the declaration of emergency pursuant to s. 252.36 126 and the filing of an order by the Commissioner of Insurance 127 Regulation. Damage under this sub-subparagraph includes flood 128 damage caused by a hurricane if flood is a covered peril under 129 the personal residential or commercial residential property 130 insurance policy. If flood is not a covered peril under the 131 personal residential or commercial residential property 132 insurance policy and the property has been damaged as a result 133 of flood caused by a hurricane, an insurer may not cancel or 134 nonrenew the personal residential or commercial residential 135 property insurance policy until the earlier of when the property 136 has been repaired or 18 months after the date of loss. 137 b.Until the earlier of when the dwelling or residential 138 property has been repaired or 1 year after the insurer issues 139 the final claim payment, if such property was damaged by any 140 covered peril and sub-subparagraph a. does not apply. 141 2.However, an insurer or agent may cancel or nonrenew such 142 a policy before prior to the repair of the dwelling or 143 residential property: 144 a.Upon 10 days notice for nonpayment of premium; or 145 b.Upon 45 days notice: 146 (I)For a material misstatement or fraud related to the 147 claim; 148 (II)If the insurer determines that the insured has 149 unreasonably caused a delay in the repair of the dwelling; or 150 (III)If the insurer has paid policy limits for a loss to 151 the insured dwelling under a personal residential policy, or 152 policy limits for a loss to each insured structure that was 153 damaged under a commercial residential policy. 154 3.If the insurer elects to nonrenew a policy covering a 155 property that has been damaged, the insurer must shall provide 156 at least 90 days notice to the insured that the insurer intends 157 to nonrenew the policy 90 days after the dwelling or residential 158 property has been repaired. Nothing in This paragraph does not 159 shall prevent the insurer from canceling or nonrenewing the 160 policy 90 days after the repairs are complete for the same 161 reasons the insurer would otherwise have canceled or nonrenewed 162 the policy but for the limitations of subparagraph 1. The 163 Financial Services Commission may adopt rules, and the 164 Commissioner of Insurance Regulation may issue orders, necessary 165 to implement this paragraph. 166 4.This paragraph is not intended to revise or modify any 167 provision of an emergency order issued by the office before July 168 1, 2024 This paragraph shall also apply to personal residential 169 and commercial residential policies covering property that was 170 damaged as the result of Hurricane Ian or Hurricane Nicole. 171 5.For purposes of this paragraph: 172 a.A structure is deemed to be repaired when the following 173 persons have inspected and certified or attested to the 174 completion of the repairs: 175 (I)A home inspector licensed under s. 468.8314; 176 (II)A building code inspector certified under s. 468.607; 177 (III)A general, building, or residential contractor 178 licensed under s. 489.111; 179 (IV)A professional engineer licensed under s. 471.015; or 180 (V)A professional architect licensed under s. 481.213 181 substantially completed and restored to the extent that it is 182 insurable by another authorized insurer writing policies in this 183 state. 184 b.The term insurer means an authorized insurer. 185 c.If a policy is extended or renewed to comply with this 186 paragraph or with any other provision of the Commissioner of 187 Insurance Regulations order, the policy must contain similar 188 policy terms as the policy being extended or renewed. However, 189 this paragraph does not impact current law with regard to the 190 rates insurers may charge for policies extended or renewed under 191 this paragraph. 192 d.Flood damage that is not communicated to the insurer and 193 the agent of the insurer before the expiration of the policy is 194 presumed nonexistent and may not be construed to alter any terms 195 of a policy, create a separate cause of action, or create any 196 additional duty on the part of the insurer or an agent of an 197 insurer to the insured. 198 6.This paragraph does not affect the provisions of s. 199 95.11 or. s. 627.70132. 200 Section 3.This act shall take effect July 1, 2024.