Florida Senate - 2025 SB 328 By Senator Garcia 36-00964-25 2025328__ 1 A bill to be entitled 2 An act relating to applicability of valued policy law 3 to surplus lines insurers; amending s. 626.926, F.S.; 4 requiring surplus lines insurers to comply with the 5 valued policy law under certain circumstances; 6 amending s. 627.702, F.S.; defining the term insurer 7 to include surplus lines insurers for the purpose of 8 the valued policy law; amending ss. 627.7011 and 9 627.7142, F.S.; conforming cross-references; providing 10 an effective date. 11 12 Be It Enacted by the Legislature of the State of Florida: 13 14 Section 1.Present subsection (2) of section 626.926, 15 Florida Statutes, is redesignated as subsection (3), and a new 16 subsection (2) is added to that section, to read: 17 626.926Liability of insurer as to losses and unearned 18 premiums; valued policy law. 19 (2)Each unauthorized insurer assuming a surplus lines 20 direct risk under this Surplus Lines Law and issuing property or 21 casualty insurance coverage shall comply with the valued policy 22 law, as applicable, under s. 627.702. 23 Section 2.Section 627.702, Florida Statutes, is amended to 24 read: 25 627.702Valued policy law. 26 (1)Beginning July 1, 2025, as used in this section, the 27 term insurer includes an unauthorized insurer assuming a 28 surplus lines direct risk under the Surplus Lines Law, ss. 29 626.913-626.937, and issuing property or casualty insurance 30 coverage. 31 (2)(a)(1)(a)In the event of the total loss of any 32 building, structure, mobile home as defined in s. 320.01(2), or 33 manufactured building as defined in s. 553.36(13), located in 34 this state and insured by any insurer as to a covered peril, in 35 the absence of any change increasing the risk without the 36 insurers consent and in the absence of fraudulent or criminal 37 fault on the part of the insured or one acting in her or his 38 behalf, the insurers liability under the policy for such total 39 loss, if caused by a covered peril, shall be in the amount of 40 money for which such property was so insured as specified in the 41 policy and for which a premium has been charged and paid. 42 (b)The intent of this subsection is not to deprive an 43 insurer of any proper defense under the policy, to create new or 44 additional coverage under the policy, or to require an insurer 45 to pay for a loss caused by a peril other than the covered 46 peril. In furtherance of such legislative intent, when a loss 47 was caused in part by a covered peril and in part by a 48 noncovered peril, paragraph (a) does not apply. In such 49 circumstances, the insurers liability under this section shall 50 be limited to the amount of the loss caused by the covered 51 peril. However, if the covered perils alone would have caused 52 the total loss, paragraph (a) shall apply. The insurer is never 53 liable for more than the amount necessary to repair, rebuild, or 54 replace the structure following the total loss, after 55 considering all other benefits actually paid for the total loss. 56 (c)It is the intent of the Legislature that the amendment 57 to this section shall not be applied retroactively and shall 58 apply only to claims filed after the effective date of such 59 amendment. 60 (3)(2)In the case of a partial loss by fire or lightning 61 of any such property, the insurers liability, if any, under the 62 policy shall be for the actual amount of such loss but may shall 63 not exceed the amount of insurance specified in the policy as to 64 such property and such peril. 65 (4)(3)The provisions of Subsections (2) and (3) (1) and 66 (2) do not apply when: 67 (a)Insurance policies are issued or renewed by more than 68 one company insuring the same building, structure, mobile home, 69 or manufactured building, and the existence of such additional 70 insurance is not disclosed by the insured to all insurers 71 issuing such policies; 72 (b)Two or more buildings, structures, mobile homes, or 73 manufactured buildings are insured under a blanket form for a 74 single amount of insurance; or 75 (c)The completed value of a building, structure, mobile 76 home, or manufactured building is insured under a builders risk 77 policy. 78 (5)(4)The amount of any loss referred to in subsection (1) 79 or subsection (2) or subsection (3) is shall be subject to any 80 coinsurance clause contained in the policy pursuant to s. 81 627.701. 82 (6)(5)This section does not apply as to personal property 83 or any interest therein, except with respect to mobile homes as 84 defined in s. 320.01(2) or manufactured buildings as defined in 85 s. 553.36(13). Nor does this section apply to coverage of an 86 appurtenant structure or other structure or any coverage or 87 claim in which the dollar amount of coverage available as to the 88 structure involved is not directly stated in the policy as a 89 dollar amount specifically applicable to that particular 90 structure. 91 (7)(6)With regard to mobile homes included in subsection 92 (2) (1), any total loss shall be adjusted on the basis of the 93 amount of money for which such property was insured as specified 94 in the policy, whether on an actual cash value basis, 95 replacement cost basis, or stated amount, and for which a 96 premium has been charged and paid only if the insured has 97 elected to purchase such coverage at the inception of the 98 policy. However, when coverage is written for a mobile home on 99 any basis other than stated value, a complete disclosure of the 100 relative cost between that policy and the stated value policy 101 shall be made to the insured on a form and in a format approved 102 by the office. Such forms shall disclose and describe the 103 differences between the types of policies and shall be signed by 104 the insured. Copies shall be maintained in the insurers file, 105 and a copy shall be made available to the insured. Each insurer 106 licensed to write insurance covering mobile homes shall make 107 such stated value coverage available at the option of the 108 insured. 109 (8)(7)This section does not prohibit Nothing herein shall 110 be construed as prohibiting an insurer from repairing or 111 replacing damaged property at its own expense and without 112 contribution on the part of the insured except, as provided in 113 subsection (7) (6), when an insured has elected to purchase 114 stated value coverage. Such repair or replacement of damaged 115 property shall be in lieu of any liability created by subsection 116 (2) (1); and any insurer so repairing or replacing shall have no 117 liability pursuant to subsection (2) (1), provided such insurer 118 returns to the named insured a portion of the premium, for all 119 policy terms during which the policy limits were the same as 120 those in effect on the date on which the loss occurred, equal to 121 that portion of the premium paid for limits of insurance on the 122 structure in excess of the cost of replacement. 123 (9)(8)Any property insurer may, by an appropriate rider or 124 endorsement or otherwise, provide insurance indemnifying the 125 insured for the difference between the insurable value of the 126 insured property at the time any loss or damage occurs, and the 127 amount actually expended to repair, rebuild, or replace within 128 this state, with new materials of like size, kind, and quality, 129 such property as has been damaged or destroyed. 130 Section 3.Paragraph (e) of subsection (6) of section 131 627.7011, Florida Statutes, is amended to read: 132 627.7011Homeowners policies; offer of replacement cost 133 coverage and law and ordinance coverage. 134 (6)This section does not: 135 (e)Prohibit an insurer from exercising its right to repair 136 damaged property in compliance with its policy and s. 627.702(8) 137 s. 627.702(7). 138 Section 4.Section 627.7142, Florida Statutes, is amended 139 to read: 140 627.7142Homeowner Claims Bill of Rights.An insurer 141 issuing a personal lines residential property insurance policy 142 in this state must provide a Homeowner Claims Bill of Rights to 143 a policyholder within 14 days after receiving an initial 144 communication with respect to a claim. The purpose of the bill 145 of rights is to summarize, in simple, nontechnical terms, 146 existing Florida law regarding the rights of a personal lines 147 residential property insurance policyholder who files a claim of 148 loss. The Homeowner Claims Bill of Rights is specific to the 149 claims process and does not represent all of a policyholders 150 rights under Florida law regarding the insurance policy. The 151 Homeowner Claims Bill of Rights does not create a civil cause of 152 action by any individual policyholder or class of policyholders 153 against an insurer or insurers. The failure of an insurer to 154 properly deliver the Homeowner Claims Bill of Rights is subject 155 to administrative enforcement by the office but is not 156 admissible as evidence in a civil action against an insurer. The 157 Homeowner Claims Bill of Rights does not enlarge, modify, or 158 contravene statutory requirements, including, but not limited 159 to, ss. 626.854, 626.9541, 627.70131, 627.7015, and 627.7074, 160 and does not prohibit an insurer from exercising its right to 161 repair damaged property in compliance with the terms of an 162 applicable policy or ss. 627.7011(6)(e) and 627.702(8) 163 627.702(7). The Homeowner Claims Bill of Rights must state: 164 HOMEOWNER CLAIMS 165 BILL OF RIGHTS 166 This Bill of Rights is specific to the claims process and does 167 not represent all of your rights under Florida law regarding 168 your policy. There are also exceptions to the stated timelines 169 when conditions are beyond your insurance companys control. 170 This document does not create a civil cause of action by an 171 individual policyholder, or a class of policyholders, against an 172 insurer or insurers and does not prohibit an insurer from 173 exercising its right to repair damaged property in compliance 174 with the terms of an applicable policy. 175 YOU HAVE THE RIGHT TO: 176 1.Receive from your insurance company an acknowledgment of 177 your reported claim within 7 days after the time you 178 communicated the claim. 179 2.Upon written request, receive from your insurance 180 company within 30 days after you have submitted a complete 181 proof-of-loss statement to your insurance company, 182 confirmation that your claim is covered in full, partially 183 covered, or denied, or receive a written statement that 184 your claim is being investigated. 185 3.Receive from your insurance company a copy of any 186 detailed estimate of the amount of the loss within 7 days 187 after the estimate is generated by the insurance companys 188 adjuster. 189 4.Within 60 days, subject to any dual interest noted in 190 the policy, receive full settlement payment for your claim 191 or payment of the undisputed portion of your claim, or your 192 insurance companys denial of your claim. 193 5.Receive payment of interest, as provided in s. 194 627.70131, Florida Statutes, from your insurance company, 195 which begins accruing from the date your claim is filed if 196 your insurance company does not pay full settlement of your 197 initial, reopened, or supplemental claim or the undisputed 198 portion of your claim or does not deny your claim within 60 199 days after your claim is filed. The interest, if 200 applicable, must be paid when your claim or the undisputed 201 portion of your claim is paid. 202 6.Free mediation of your disputed claim by the Florida 203 Department of Financial Services, Division of Consumer 204 Services, under most circumstances and subject to certain 205 restrictions. 206 7.Neutral evaluation of your disputed claim, if your claim 207 is for damage caused by a sinkhole and is covered by your 208 policy. 209 8.Contact the Florida Department of Financial Services, 210 Division of Consumer Services toll-free helpline for 211 assistance with any insurance claim or questions pertaining 212 to the handling of your claim. You can reach the Helpline 213 by phone at ...(toll-free phone number)..., or you can seek 214 assistance online at the Florida Department of Financial 215 Services, Division of Consumer Services website at 216 ...(website address).... 217 YOU ARE ADVISED TO: 218 1.File all claims directly with your insurance company. 219 2.Contact your insurance company before entering into any 220 contract for repairs to confirm any managed repair policy 221 provisions or optional preferred vendors. 222 3.Make and document emergency repairs that are necessary 223 to prevent further damage. Keep the damaged property, if 224 feasible, keep all receipts, and take photographs or video 225 of damage before and after any repairs to provide to your 226 insurer. 227 4.Carefully read any contract that requires you to pay 228 out-of-pocket expenses or a fee that is based on a 229 percentage of the insurance proceeds that you will receive 230 for repairing or replacing your property. 231 5.Confirm that the contractor you choose is licensed to do 232 business in Florida. You can verify a contractors license 233 and check to see if there are any complaints against him or 234 her by calling the Florida Department of Business and 235 Professional Regulation. You should also ask the contractor 236 for references from previous work. 237 6.Require all contractors to provide proof of insurance 238 before beginning repairs. 239 7.Take precautions if the damage requires you to leave 240 your home, including securing your property and turning off 241 your gas, water, and electricity, and contacting your 242 insurance company and provide a phone number where you can 243 be reached. 244 Section 5.This act shall take effect July 1, 2025.