Florida Governor Ron DeSantis (R) has signed a new law into effect following Hurricane Ian that allegedly aims to make obtaining property insurance easier and more affordable for home and business owners. But do these new policies really help, or are they leaving property owners with too little time to file claims for damages? Here’s what to know. 

What The Law Means For Property Owners 

Before this law was passed, property owners had as long as two (2) years to file a claim for damages to their homes or buildings. Now, owners must submit or reopen a damage claim within one (1) year to be considered eligible for coverage. Supplemental claims also used to have a three (3) year submission window, and now property owners have just 18 months. 

Owners also can’t sue their insurance companies unless they can prove their insurers defrauded them or otherwise acted in bad faith. This, unfortunately, leaves property owners at an unfair disadvantage when it comes to holding insurers accountable for inappropriate conduct.  

What The Law Means For Insurance Companies 

Of course, property owners aren’t the only ones who will be impacted by the new insurance laws. Insurance companies also have a few new regulations, primarily related to the efficiency and speed at which claims are investigated, settled, and paid. Insurers must also include if flood damage isn’t covered on the policy’s declaration page, and are required to offer substantial discounts to customers who opt into the arbitration contract and agree to mediate in favor of suing. 

Changes To The Assignment Of Benefits 

Perhaps the most concerning update to Florida’s property insurance laws is the discontinuation of Assignment of Benefits, which permitted contractors to conduct maintenance and repairs permitted by the claimant’s policy and directly invoice the insurance carrier for the costs. Builders would then receive payment from the insurance provider, which helped facilitate the process of filing claims for property owners. 

Property owners must now pay contractors up front for repair or reconstruction services, and have to send the receipt along with a detailed claim to their insurance provider for expense reimbursement. Because of this, customers will find it more challenging to use their insurance coverage to have property damages fixed, and many building owners won’t be capable of paying builders up front. This will undoubtedly leave many home and business owners with little recourse, even if the damage is technically covered by their policies. 

For help navigating property insurance claims in Florida, call Feinstein Real Estate Litigation & Business Law by dialing 954-767-9662.