Florida Governor Ron DeSantis has signed a bill that allows insurers to offer higher hurricane deductibles on some residential policies and lets insureds waive windstorm coverage or contents coverage with a typed form. The bill also allows insurers to use an average of two or more computer models approved by the Florida Commission on Hurricane Loss Projection Methodology when filing rate increases.

The bill, which takes effect last July 1, is one of several major insurance-related measures that were passed by the Florida Legislature this year. Other measures include a tort-reform bill that extends limits on assignments of benefits and attorney fees to most insurance claims disputes and personal injury cases, and a windshield-repair bill that bars AOBs and forbids repair shops from offering gifts to consumers.

The full text of the bill can be found here.

Here are some of the key provisions of the bill:

• Allows insurers to offer higher hurricane deductibles on some residential policies.
• Lets insureds waive windstorm coverage or contents coverage with a typed form.
• Provides that insurers, when filing rate increases, may use an average of two or more computer models approved by the Florida Commission on Hurricane Loss Projection Methodology.
• Allows rate filings to include more premium discounts for residential property if a home is built to windstorm mitigation construction standards developed by independent scientific research organizations.
• Loosens the requirement that insurers give 15-day notice when raising premiums for policyholders who pay premiums through automatic bank drafts.
• Provides that motor vehicle service agreement companies, or auto warranty firms, can go without unearned premium reserves if they maintain liability insurance and agree to pay 100% of claims as they occur.

The bill is expected to have a significant impact on the Florida property insurance market. The higher deductibles will give insurers more flexibility in setting rates, and the ability to use more storm models will help them to more accurately assess risk. The bill is also expected to encourage more homeowners to build their homes to windstorm mitigation standards.

The bill has been met with mixed reactions from the insurance industry and consumer groups. Some insurers have welcomed the bill, saying that it will help them to become more stable and competitive. However, consumer groups have expressed concerns that the higher deductibles will make it more difficult for homeowners to afford insurance.

The bill is the latest in a series of legislative changes that have been made to the Florida property insurance market in recent years. These changes have been driven by the increasing frequency and severity of hurricanes in the state. The goal of these changes is to make the market more stable and affordable for homeowners.