Chris Dawson, Attorney, GrayRobinson
The Florida Legislature convened in Special Session on May 23 to address the state’s ongoing crisis in residential property insurance. Over the course of approximately 72 hours, the Legislature accomplished passage of major reform legislation that had proven elusive over the last several years of effort during regular legislative sessions. Further, with overwhelming support from legislators, the Special Session was expanded to address reforms sought in the aftermath of the Surfside Condo collapse during the summer of 2021. Let’s recap the bills that passed.
Property Insurance: HB 1D by Rep. Jay Trumbull (R – Panama City) and SB 2D by Sen. Jim Boyd (R – Bradenton)
Property insurance including:
■ Creating the Reinsurance to Assist Policyholders program to be administered by the State Board of Administration.
■ Requiring certain property insurers to obtain coverage under the program.
■ Revising homeowner eligibility criteria for mitigation grants.
■ Requiring claimants to establish that property insurers have breached the insurance contract to prevail in certain claims for damages.
■ Requiring the Office of Insurance Regulation (OIR) to aggregate on a statewide basis and make publicly available certain data submitted by insurers and insurer groups, etc.
APPROPRIATION: $150,000,000
Effective Date: Except as otherwise expressly provided in this act, this act shall take effect upon becoming a law.
■ My Safe Florida Home Program – appropriates $150 million to the program to provide hurricane mitigation inspections and matching grants for the performance of hurricane retrofitting on homestead single-family homes with a value of $500,000 or less.
■ Contractor Solicitation of Roof Claims – prohibits contractors from making written or electronic communications that encourage or induce a consumer to contact a contractor or public adjuster for the purposes of making a property insurance claim for roof damage unless the solicitation provides: that the consumer is responsible for the payment of any deductible. It is insurance fraud for a contractor to pay or waive an insurance deductible and it is insurance fraud to intentionally file an insurance claim containing false, fraudulent or misleading information.
■ Separate Roof Deductibles – allows property insurers to include a separate roof deductible and an option to decline said deductible by signing documentation approved by OIR. If a roof deductible is added to the policy at renewal, the insurer must provide notice of change in policy terms and allow the policyholder to decline the separate roof deductible in favor of replacement value coverage (RVC). A permissible roof deductible under this provision is the lesser of two percent of the Coverage A value of the policy OR 50 percent of the replacement value of the roof. The roof deductible may not be applied if the loss is: (1) a total loss to a primary structure that is caused by a covered peril, (2) a roof loss resulting from a hurricane, (3) a roof loss resulting from a tree fall or another hazard that damages
the roof and punctures the roof deck or (4) a roof loss requiring the repair of less than 50 percent of the roof.
■ Roofs-Insurer Underwriting – prohibits an insurer from refusing to issue or refusing to renew a homeowner’s insurance policy because the roof is more than 15 years old. For a roof that is at least 15 years old, the bill requires an insurer to allow a homeowner to have a roof inspection performed by an authorized inspector at the homeowners’ expense before requiring a homeowner to replace
a roof as a condition of issuing or renewing a homeowners’ insurance policy. Additionally, if an inspection of the roof performed by an authorized inspector shows that the roof has at least 5 years of useful life remaining, the insurer may not refuse to issue or renew a homeowners’ policy solely because of roof age.
Building safety including:
■ Providing that the entire roofing system or roof section of certain existing buildings or structures does not have to be repaired, replaced or recovered in accordance with the Florida Building Code under certain circumstances.
■ Requiring condominium associations and cooperative associations to have milestone inspections performed on certain buildings at specified times.
■ Authorizing local enforcement agencies to prescribe timelines and penalties relating to milestone inspections.
■ Revising the types of records that constitute the official records of a condominium association.
■ Prohibiting certain members and associations from waiving or reducing reserves for certain items after a specified date, etc.
Effective Date: upon becoming a law.
■ Requires the Florida Building Code to provide that when 25% or more of a roofing system or roof section is being repaired, replaced or recovered, only the portion of the roofing system or roof section undergoing such work must be constructed in accordance with the current code in effect at that time. This new exception to the current 25% Rule applies to roof systems and roof sections built, repaired or replaced in accordance with the requirements of the 2007 Florida Building Code or subsequent editions.
■ Establishes that any condo unit, three stories in height or more, must have a “milestone inspection” by December 31st of the year in which the building reaches 30 years of age, based on the date the certificate of occupancy was issued. If the building is within three miles of the coastline, then the first milestone inspection must be done within 25 years of when the CO was issued. In both instances, inspections must be repeated every 10 years after the initial one. It will be up to local jurisdictions to provide written notice to the condo
association that a milestone inspection is due by certified mail. The milestone inspection must take place within 180 days of receiving the notice.
■ A milestone inspection takes place in two phases. The first must be completed by a licensed architect or engineer and must include a visual inspection of habitable and uninhabitable areas including major structural components. The second takes place if any substantial structural deterioration is identified during phase one. The bill establishes details of how the findings of the inspection are delivered and shared by the architect or engineer. It also establishes details, deadlines and requirements of how quickly repairs to a building must take place if and when structural issues are identified as part of the inspection process.
■ The Florida Building Commission shall review the milestone inspection requirements and make recommendations to the Legislature to ensure the inspections are sufficient to determine the structural integrity of a building.
■ Establishes that, effective December 31, 2024, the members of a unit-owner controlled association may not determine to provide no reserves, or less reserves than required by this legislation for any of the following items: roof, load bearing walls or other primary structural members, floor, foundation, fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior
paint, windows and any item that has a deferred maintenance expense or replacement cost that exceeds $10,000.
Chris Dawson is an Attorney and professional Lobbyist for GrayRobinson’s Orlando office and is licensed to practice law in both Florida and Alabama. He primarily focuses on lobbying and government relations for public and private sector clients at the executive and
legislative levels of state government. He is credentialed as a Designated Professional Lobbyist by the Florida Association of Professional Lobbyists. Chris also holds two degrees in Civil Engineering and has experience in construction litigation and design professional malpractice defense.
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