Bill mandating coverage after flood damage clears Senate panel despite insurer opposition

In this photo made in a flight provided by mediccorps.org, receding storm waters surround homes in a community near Keaton Beach, Fla., following the passage of Hurricane Idalia, Wednesday, Aug. 30, 2023. (AP Photo/Rebecca Blackwell)

Legislation requiring property insurers to continue covering flood-damaged homes and businesses for 90 days after repairs are completed passed through a Senate committee over the objections of trade groups representing insurers.

The bill (SB 1104) from Sen. Jennifer Bradley, a Fleming Island Republican, is designed to prevent insurers from canceling or not renewing policies for homes that received flood damage after a hurricane. Many homeowners in Southwest Florida received cancellation notices in the wake of Hurricane Ian, which swept through the area in September 2022.

“We’re just giving that homeowner a small window to conduct those repairs and be insured,” Bradley said.

The bill passed unanimously through the Senate Banking & Insurance Committee, but insurers took issue with the requirement, especially over flood damage, which a typical homeowner policy doesn’t cover. For commercial properties, the requirement would extend for up to one year, or until the damage is repaired. They also object to a provision requiring that any extension or renewal of the policy be done on the same terms and at the same rate.

“As the bill stands right now there are several problems that would lead to a reduction in appetite in the Florida market,” said George Feijoo, a lobbyist for the Florida Insurance Council, a trade group representing insurance companies.

“Some of our carriers that are writing that business don’t actually write that flood coverage and have no control over how it’s getting repaired. So it would be an increased risk to those carriers to stay on those policies.”

There are exceptions to the requirement, including allowing insurers to cancel policies for nonpayment, fraudulent statements regarding damages and for unnecessarily delays in making the repairs.

Nevertheless, the bill passed unanimously, and some lawmakers noted that after passing several bills aimed at reducing lawsuits and limiting attorneys fees — policies insurers pushed heavily for — homeowners have only seen premiums continue to increase, putting pressure on the Legislature to act.

“The Legislature over the last two years has done a lot to try to attract national carriers and other carriers to Florida,” said Sen. Doug Broxson, a Pensacola Republican. “If you’ve gone to any public meetings lately in your district you know the big topic is insurance and people are at a critical point of not being able to afford insurance.”