TALLAHASSEE.- An extraordinary session of the legislature that seeks to stabilize the Florida home insurance market began in Tallahassee on Monday.
According to state lawmakers, they will work to reduce the cost of insurance claims lawsuits and seek to improve the availability of critical reinforcers in the event of extreme payments. They also intend to strengthen the financial stability of the state insurer Citizens.
Floridians pay the highest homeowners insurance premiums in the nation, and the goal is to try to stabilize the market to lower those premiums.
Another issue under discussion is that hundreds of thousands of citizen-insured homeowners would have to pay more immediately because part of the 100-plus-page proposal includes requiring insured citizens to compulsorily purchase flood insurance.
Another critical aspect of the proposal is that it severely limits lawsuits against insurance companies to collect claims. If passed, the bill removes the obligation for insurance companies to pay homeowners’ attorney fees prevalent in their lawsuits.
It would also outlaw the practice of awarding benefits, where the owner authorizes a third party to carry out the repairs and negotiate directly with the insurance company.
There will also be a shorter time for the landlord to file a claim, but on the other hand the insurance companies will have less time to acknowledge the claim, do the inspections and make a decision.
