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with spiralling costs and rising catastrophe exposure, several major insurers have cut coverage in at-risk areas or withdrawn from the state entirely, leaving Florida homeowners scrambling to get good coverage.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.
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: "With a simple change, we can help make sure that Floridians are better informed of upcoming changes to their homeowners' insurance, including policy cancellations, nonrenewals and rate changes.
"This session, I've filed SB 128 to require insurers to email this information to policyholders if an email address has been provided. These notices are currently sent in a basic letter through regular mail, which can easily be overlooked as most people now manage all of their accounts online.
"Sending this important information electronically will help protect Florida consumers by increasing the likelihood that they see it, ensuring they have time to take action so their coverage does not lapse."
Florida State Senator and Senate President Ben Albritton, a Republican representing Wauchula, previously told Newsweek: "Floridians have been faithfully paying insurance premiums for years, sometimes decades, and now they expect their insurance company to keep up its end of the bargain.
"I want to make sure that impacted Floridians and insurance companies hear me loudly and clearly—we are watching. We've made changes insurance companies said they needed to improve competition and stabilize rates. And, we've enacted pro-consumer transparency to protect homeowners. The proof will be in the results. I'm not going to sit idly by if legitimate claims get denied while rates continue to rise. Period."
What's Next
Burgess' proposal, which was filed before the Christmas holiday, will be discussed once the 2025 legislative session begins in Tallahassee on March 4. If passed, the bill would be added to Florida State statute 627.7011 as a seventh section, according to Florida Politics.
Florida Governor Ron DeSantis called for a special session starting the week of January 27 to address immigration, hurricane relief and other issues, but not the insurance crisis in the state.
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