Florida bills limit roof refusal by insurers, add new fund

ORLANDO, Fla. — (AP) — Legislation proposed by Florida lawmakers for a special session in the upcoming week to reform the state’s property insurance market would create a $2 billion reinsurance fund and prohibit insurers from automatically denying coverage to homeowners with older roofs.

WATCH: Developers: Here’s how to solve Central Florida’s housing crisis

Four bills filed late Friday in the state House and Senate would create a new fund in which insurers can purchase insurance to help insulate them from risk.


The bills also would allow homeowners with roofs that are 15 years or older to get an inspection of their condition before insurers deny them coverage. If an inspection shows that a roof has at least five years of life remaining, insurers can’t refuse to issue a policy only based on the roof’s age under the proposed legislation.

WATCH: Are investors driving Central Florida’s housing crisis?

Under the proposals, some insurers would be required to get coverage from the Reinsurance to Assist Policyholders program operated by the State Board of Administration.

In a proclamation calling lawmakers back to Tallahassee in the upcoming week, Republican Gov. Ron DeSantis highlighted several issues that have contributed to rising insurance rates in the state, including high rates of insurance litigation that drive up premiums and massive underwriting losses for insurance companies that have resulted in insolvency or canceled policies, among other things.

READ: Home sales tumble again as mortgage rates surge

Florida Chief Financial Officer Jimmy Patronis said in an interview that last year, the state accounted for 9% of all claims filed nationally but nearly 80% of all property insurance lawsuits.

Click here to download the free WFTV news and weather apps, and click here to watch the latest news on your Smart TV.