Friday, December 2nd, 2022

NAMIC responds to particular session on property insurance coverage reform

NAMIC responds to special session on property insurance reform

With Florida’s legislators holding a particular session to deal with the state’s problematic property insurance coverage market, the Nationwide Affiliation of Mutual Insurance coverage Corporations (NAMIC) has issued an announcement saying that the particular session is “a chance for the Legislature to go vital reforms.”

Through the particular session, the Senate Committee on Appropriations permitted two payments, which can transfer to the Senate. One of many payments – Senate Invoice 2D – seeks to determine a $2 billion reinsurance fund; revise home-owner eligibility standards for mitigation grants; require claimants to adequately set up that their insurers have breached the contract to assert for damages; and make the Florida Workplace of Insurance coverage Regulation publicly launch combination sure information submitted by insurers.

The opposite measure, Senate Invoice 4D, appears to be like to amend how roofing repairs are carried out and coated by insurance coverage. The invoice would forbid insurers from mechanically denying protection for roofing that’s 15 years previous or much less; it additionally adjustments present guidelines so that each one roofs which are greater than 25% broken however adjust to Florida’s 2007 constructing code to be repaired as a substitute of changed.

NAMIC positively responded to the permitted payments in an announcement.

“The bundle, whereas not good, makes much-needed progress in considerably reforming the litigation setting that has allowed rampant lawsuit abuse in Florida lately and has despatched {the marketplace} right into a slow-motion collapse,” stated NAMIC Southeast regional vp Caitlin Murray.

NAMIC pressured in an announcement that whereas Florida at present represents solely 9% of property claims within the US, it additionally accounts for 79% of insurance coverage lawsuits within the nation.

“Because the invoice at present stands, we consider it would enhance the property insurance coverage local weather and can depart Florida policyholders in a greater place than they’re at this time, notably in reforming Florida’s damaged unhealthy religion and lawyer’s charges statutes that incentivize pointless litigation and drive prices upward,” added Murray. “NAMIC anticipates this session will result in fewer lawsuits and, as these prices fall, insurers will likely be inspired to do enterprise in a extra steady litigation setting in Florida.”

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