Homeowners’ insurers in Florida could be required to give policyholders better notifications before cancelling, non-renewing or increasing their premiums.
Under new legislation proposed by state Senator Danny Burgess, SB 128, insurers would have to give policyholders at least 45 days’ advanced written notice by mail and email where possible, specifying their reasons behind cancellations.
The move comes amid an ongoing property insurance crisis in the Sunshine State, and as California wildfires reveal the severe difficulties for policyholders dropped by their insurers. It is intended to give homeowners more certainty around cancellations, ensuring they have time to shop around for new policies.
Newsweek contacted Burgess for comment through a form on its website on Friday morning.
Why It Matters
Homeowners’ insurance policy rates have skyrocketed in Florida in the past few years due to a combination of excessive litigation, widespread fraud, and the increasing risk posed by climate change, which has made natural disasters like hurricanes more frequent and more severe.
Faced with spiralling costs and rising catastrophe exposure, several major insurers have cut coverage in at-risk areas or withdrawn from the state entirely, leaving Florida homeowners scrambling to get good coverage. As a result of this exodus, the Sunshine State’s insurer of last resort, Citizens, has grown massively in the past couple of years, raising concerns over what would happen should it face a deluge of damage claims after a particularly bad extreme weather event.
What To Know
The bill proposed by Burgess, a Republican representing Zephyrhills, would require that insurers give notice of cancellation, renewal or rate change by mail—to the policyholder’s last address as shown by the records of the insurer—and by email if an email address has been provided.
Under the bill, insurers would have to give homeowners whose policies are being cancelled due to non-payment of premium at least 10 days’ written notice, accompanied by the reason. Such notice won’t be required for policies under which premiums are paid monthly.
A home in Manasota Key, Florida, destroyed by Hurricane Milton on October 12, 2024. A Florida state senator wants to change the rules around how insurers notify policyholders of cancellations, non-renewals, and rate hikes. A home in Manasota Key, Florida, destroyed by Hurricane Milton on October 12, 2024. A Florida state senator wants to change the rules around how insurers notify policyholders of cancellations, non-renewals, and rate hikes. Joe Raedle/Getty Images
The idea behind the bill is to give Florida homeowners better communication of changes to their policies. According to Burgess, this would avoid such important notices getting lost in Americans’ mailboxes.
What People Are Saying
Florida Sen. Danny Burgess wrote on X:
Florida Insurance Policy Rules to Change Under New Bill
