2023 LEGISLATIVE UPDATES

In the 2023 legislative session, the Florida Legislature passed several bills that impact the real estate industry. Unless stated otherwise, the bills below become effective and are law on July 1, 2023. Below are the key highlights of each new law and how they may impact you, as a REALTOR® member, and your business.

NOTE THAT THESE ARE SUMMARIES OF THE LAWS – PARTIES TO REAL ESTATE TRANSACTIONS AND REALTORS® SHOULD CONSULT WITH AN ATTORNEY REGARDING HOW THESE NEW LAWS MAY IMPACT THEIR LEGAL RIGHTS AND RESPONSIBILITIES.

 

GENERAL RESOURCES:

• Florida REALTORS® Legal Hotline: (407) 438-1409
• Florida REALTORS® 2023 Legislative Final Report
• MIAMI REALTORS®’ Advocacy Team

 

SB 102: LIVE LOCAL ACT

SUMMARY:

Provides increased opportunities and incentives to build and offer affordable housing.

KEY POINTS:

• RESOURCES:
  • City of Miami map (DRAFT): IMPACTED TRANSECTS which are sites zoned to allow Commercial and Mixed-use under Miami 21
  • City of Miami map (DRAFT): IMPACTED SITES which are zoned to allow Commercial and Mixed-use under Miami 21
• LOCAL GOVERNMENTS MUST:
  • Allow both multifamily and mixed use residential in any area zoned for commercial, industrial, or mixed use, if at least 40% of the residential units in a proposed multifamily rental development for a period of at least 30 years are affordable as defined in Stat. Sec. 420.0004.
• LOCAL GOVERNMENTS CANNOT:
  • Adopt or maintain any form of rent control or price control ordinance.
  • Require a proposed multifamily development to obtain a zoning or land use change, special exception, conditional use approval, variance, or comprehensive plan amendment for the building height, zoning, and densities authorized under this subsection. For mixed-use residential projects, at least 65% of the total square footage must be used for residential purposes.
  • Restrict height of a proposed development under this subsection below the highest allowable height within a one-mile radius or three stories, whichever is greater.
  • Restrict the density of a proposed development under this subsection below the highest allowed density on any land in the county or city where residential development is allowed.
• REQUIREMENTS FOR GOVERNMENT-OWNED LAND:
  • The new law creates provisions and guidelines to allow greater access to the purchase or lease or any county property for affordable housing purposes.
  • Requires local governments to publish online their inventory of local government-owned property that may be suitable for affordable housing development. It also encourages local governments to consider “best practices” it requires technical assistance to help facilitate the use of public property.
  • Encourages the use of public property for affordable housing and allows for expedited permits and development orders for local governments.
• ADDITIONAL FUNDING FOR SAIL, SHIP, AND OTHER INCENTIVES:
  • $252 million to SHIP (State Housing Initiatives Partnership) and $259 million to SAIL (State Apartment Incentive Loan). Going forward, it includes $150 million a year to SAIL for 10 years (total of $1.5 billion)
  • Allows corporate taxpayers to designate a portion of their taxes to fund the SAIL program.
  • Provides incentives such as refunds on building materials used to create affordable housing.
• TAX EXEMPTIONS FOR AFFORDABLE HOUSING:
  • Nonprofit landowners that lease their land for a minimum of 99 years to provide affordable housing to extremely low income, low income, or moderate-income limits as defined in Stat. Sec. 420.0004, are exempt beginning with the 2024 tax roll.
  • Allows counties and municipalities to offer a property tax exemption to property owners who dedicate units for affordable housing at extremely-low-income, very-low-income, or both.
  • Authorizes a local-option property-tax exemption to property owners who dedicate units for affordable housing for extremely low income and/or very low-income Floridians.
  • Allows local governments to enact ordinances that create tax exemptions to multifamily property owners if they:
    • Have 50 or more units; and,
    • Dedicate 20% of the units for affordable housing to those earning greater than 30% but not exceeding 60% of the annual median income.
  • HOMETOWN HEROES PROGRAM WAS EXPANDED:
    • Florida Hometown Heroes Program was allocated an additional $100 million and is now available to all Florida workers so long as they do not make more than 150% of the state median income or local median income, whichever is greater.
    • Borrower must be purchasing primary residence, be a first-time homebuyer (this does not apply to active duty servicemembers), Florida resident, and employed full time by a Florida-based employer.

 

HB 1417: RESIDENTIAL TENANCIES

SUMMARY:

Expressly preempts any local regulation of residential tenancies and landlord tenant relationships. (NOTE: HB 1417 was presented to the Governor for signature on June 14, 2023.)

KEY POINTS:

• In month-to-month tenancies, landlords and tenants must give each other 30-days’ notice to terminate.
• In leases, the termination notice period may not be less than 30 days, or more than 60 days.
• Local government can no longer dictate landlord-tenant relationships, notice requirements, security deposits, or rental agreements.

 

HB 7063: TAXATION

SUMMARY:

Provides tax relief for Floridians in their everyday expenditures and in commercial activities. Specifically, the bill provides property tax relief, extended, and expanded tax-free holidays, and business tax relief.

KEY POINTS:

• TAX EXEMPTIONS:
  • Expands homestead exemption to surviving spouses of first responders, which now includes federal law enforcement officers.
  • Disabled veterans and their surviving spouses may transfer homestead exemption to new property.
• TAX REDUCTIONS:
  • Reduces commercial lease tax rate on the rental or license fee of real property to 4.5%, starting on December 1, 2023. NOTE: This will be the rate until the unemployment compensation trust fund is fully reimbursed. Shortly after that, the rate will drop to 2%. Current projections for this to happen are for the summer of 2024.
  • Back to school sales tax holidays:
    • July 24, 2023, through August 6, 2023
    • January 1, 2024, through January 14, 2024
  • Disaster preparedness sales tax holidays:
    • May 27, 2023, through June 9, 2023
    • August 26, 2023, through September 8, 2023
  • “Freedom Summer” tax holiday:
    • May 29, 2023, through September 4, 2023
  • Year-long sales tax exemption on certain appliances, like refrigerators, water heaters, washers, and dryers:
    • July 1, 2023, through June 30, 2024

 

SB 770: RESIDENTIAL LOAN ALTERNATIVE AGREEMENTS

SUMMARY:

Protects sellers or owners from “residential loan alternative agreements,” which are signed or written legal instruments or contracts between a person and a seller or owner of residential real property, which grant an exclusive right to act as a broker for the disposition of the property, has an effective duration including renewals of more than two years, and require the person to pay monetary compensation to the seller or owner.

KEY POINTS:

• Residential loan alternative agreements may NOT:
  • Authorize a person to place a lien or encumbrance on residential real property;
  • Be assigned; or,
  • Be recorded by the clerk or circuit court.
• Residential loan alternative agreements are void if listing services do not begin within 90 days after the agreement is fully executed.

HB 133: FEES IN LIEU OF SECURITY DEPOSITS

SUMMARY:

Landlords can now offer tenants the option of charging a monthly nonrefundable fee in lieu of a traditional security deposit. This bill also allows landlords to collect the security deposit in monthly installments. This security deposit alternative is completely optional.

KEY POINTS:

• If both the landlord and tenant agree to a fee in lieu of a security deposit, the agreement must have mandatory disclosures. In part, the disclosures must state that fee is nonrefundable. See Stat. Sec. 83.491, once enacted, for the language that must be included in the full disclosure.
• The tenant can revoke the option to pay a fee in lieu of a security deposit at any time; and, can pay the security deposit instead.
• Fee cannot be used to cover any costs from damages.

 

SB 154: CONDOMINIUM AND COOPERATION ASSOCIATIONS

SUMMARY:

Creates delineated standards for inspections as well as amends mandatory inspections, funding requirements, and SIRS (Structural Integrity Reserve Study) requirements. This bill took effect upon signing on June 5, 2023.

• MANDATORY STRUCTURAL INSPECTIONS
  • GENERALLY:
    • There are now mandatory inspection requirements for condominium and cooperative buildings that are 3 stories or more in height.
    • Residential condominium associations and residential cooperative associations must complete a milestone inspection by December 31st in the year that the building reaches 30 years of age.
    • The age of the building is decided on the initial certificate of occupancy, otherwise the age of the building is determined by the certificate of use filed with the local building official records.
    • Every 10 years after that, property must be reinspected.
    • If the building reaches 30 years old before July 1, 2022, then inspection must be completed prior to December 31, 2024.
    • If the building reaches 30 years old after July 1, 2022, but prior to December 31, 2024, the initial milestone must be completed before December 31, 2025.
  • LOCAL ENFORCEMENT AGENCIES:
    • Have the discretion to require the inspection sooner at the 25-year mark if they determine that environmental conditions render it necessary.
    • May extend the date of a building’s milestone inspection upon a showing of good cause that it cannot be timely completed when the owners have entered into a contract to complete the inspection just not before the deadline.
    • May accept an inspection completed prior to July 1, 2022, if it substantially complies with the requirements.
    • May adopt ordinances requiring that condominium or cooperative associations schedule or commence repairs pursuant to a milestone inspection within a specified timeframe, but repairs must be completed within 365 days of the inspection report.
  • NOTICE AND DEADLINE REQUIREMENTS:
    • Local enforcement agencies must provide written notice of required inspections.
    • After that, both condominium and cooperative associations must notify unit owners of the required inspections within 14 days of receipt of the written notice from local enforcement agencies. Those notices must also provide the date by which the milestone inspection must be completed.
    • Phases:
      • Phase 1 of the milestone inspection must be completed within 180 days after the building owners received the written notice from the local enforcement agency.
      • Phase 2 of the milestone inspection is completed if “substantial structural deterioration” is found during Phase 1. If a Phase 2 inspection is required, the party performing the Phase 2 inspection must submit a Phase 2 progress report to the local enforcement agency within 180 days.
    • Within 45 days or receiving the inspection report, the condominium or cooperative association must distribute a copy of the inspector-prepared summary to the unit owners.
  • CONSEQUENCES FOR BOARD MEMBERS:
    • If officers or directors willfully and knowingly fail to complete mandatory structural inspections such failure is considered a breach of fiduciary duty under Stat. Sec. 718.111.

• FLOOD INSURANCE REQUIREMENTS:
  • All residential policyholders who have insurance through Citizens Property Insurance Corporation must have flood insurance.
  • If property is within “special flood hazard area” as designated by FEMA, insured must attain flood coverage by:
    • Date of the initial Citizens Property Insurance policy issuance if the property was purchased after April 1, 2023; or,
    • At the time of policy renewal for all personal lines of residential policies renewing on or after July 1, 2023.
  • If property is not within “special flood hazard area” as designated by FEMA, insured must attain flood coverage by:
    • January 1, 2024, for property valued at $600,000 or above.
    • January 1, 2025, for property valued at $500,000 or above.
    • January 1, 2026, for property valued at $400,000 or above.
    • January 1, 2027, final deadline for remainder of properties that do not fall within the aforementioned deadlines.
    • By January 1, 2027, all personal lines of residential policies in Florida must have flood insurance.
  • Policyholders are not required to purchase flood insurance if:
    • Their policies do not provide wind coverage.
    • Their policies provide coverage under a condominium unit owners form.

• BUDGET AND RESERVES:
  • Condominium associations, in their proposed annual budget of estimated revenues and expenses, must include reserve accounts for capital expenditures and deferred maintenance.
  • If the members of a unit-owner-controlled association must obtain a structural integrity reserve study, then the budgets adopted on or after December 31, 2024, may not exclude all reserves nor provide less reserves as required by the statute. (See below for SIRS for requirements). Exception: when an alternative funding method is provided.

• STRUCTURAL INTEGRITY RESERVE STUDY (“SIRS”):
  • A residential condominium association must complete a SIRS study at least every 10 years after the condominium’s creation for each building on the condominium property that is 3stories or higher.
  • SIRS, as determined by the Florida Building Code, includes a study of the following for structural integrity and safety of the building: roof, structure (load-bearing walls, and order primary structural systems as defined by Stat. Sec. 627.706), fireproofing and fire protection systems, plumbing, electrical systems, waterproofing and exterior painting, windows and exterior doors, and any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and failure to replace or maintain this item affects other structural areas mentioned.
  • SIRS must identify each item being visually inspected, state the estimated remaining useful life, estimated replacement cost or deferred maintenance expense, and recommend a reserve funding scheduled with a recommended annual reserve amount that meets the estimates for replacement costs and deferred maintenance.
  • SIRS may recommend that reserves for replacement costs do NOT need to be maintained for any item that has an estimated remaining useful life greater than 25 years.
  • Associations that existed on or before July 1, 2022, that are controlled by unit owners, and are 3stories or higher, must have SIRS completed by December 31, 2024.
  • An association that is required to complete a milestone inspection under Stat. Sec. 553.899 on or before December 31, 2026, may complete SIRS simultaneously. The SIRS may not be completed after December 31, 2026.
  • If the milestone inspection under Stat. Sec. 553.899 was completed within the past 5 years, and it meets the requirements of SIRS, then it may be used in lieu of the visual inspection portion of SIRS.
  • If officers or directors willfully and knowingly fail to complete SIRS, such failure is considered a breach of fiduciary duty under Stat. Sec. 718.111.

 

SB 574: TERMINATION OF AGREEMENTS BY SERVICEMEMBERS

SUMMARY:

This bill seeks to explain the instances in which servicemembers can terminate their rental agreements when they are faced with an involuntary change due to military orders.

KEY POINTS:

• Servicemembers may terminate their rental agreements by providing their landlord with at least 30 days’ written notice if the servicemember:
  • Is required to move 35 miles or more from their rental premises pursuant to a change of station order. If servicemember has leased the property, but has not moved in, this provision is still applicable.
  • Is prematurely or involuntarily discharged or released from active duty and state active duty.
  • Is released from active duty or state active duty and their home of record prior to active/state duty is more than 35 miles away from the leased premises.
  • Receives military orders requiring him/her/them to move to government quarters or servicemember becomes eligible for government quarters. This applies if military orders were received after entering into the lease agreement.
  • Receives a temporary duty or temporary change of station order that lasts longer than 60 days for an area 35 miles or further from leased property.

 

HB 1379: ENVIRONMENTAL PROTECTION:

SUMMARY:

Addresses environmental protection, water quality regulations, and the acquisition of state land.

KEY POINTS:

• Acquisition of property, under this bill, Chapter 259, Chapter 260, or Chapter 375 of the Florida Statutes, and where title will vest to the board of trustees, does not bind the state until the agreement is reviewed AND approved by the Department of Environmental Protection (“DEP”).
• Additionally, it must be submitted to and approved by the board of trustees if any of the following are present: purchase price exceeds the value as established pursuant to the board of trustee rules; contract price exceeds $5 million; or other conditions the board of trustees may adopt by rule.

 

HB 1419: REAL PROPERTY FRAUD

SUMMARY:

Reduces real property fraud by providing notice to owners and creates an expedited process to clear title.

KEY POINTS:

• Recording notification service:
  • On or before July 1, 2024, each clerk of circuit court must create and operate a free recording notification service, which is open to all who register.
  • Within 24 hours of recording a document related to the property, the person who opted into the service must be notified.
• Quieting title due to fraudulent conveyances:
  • An individual who brings an action to quite title based upon an allegation of fraudulent attempted conveyance is entitled to summary procedure under Stat. Sec. 51.011.
  • If a court determines that there was an attempt to fraudulently convey land, then the court must quiet title in and award plaintiff same title and rights it had prior to the attempted fraudulent conveyance.

 

HB 919: HOMEOWNERS’ ASSOCIATIONS (“HOA”)

SUMMARY:

Amends Chapter 720 of the Florida Statutes and revises provisions to increase transparency and accountability of HOAs. Creates an HOA Bill of Rights, which takes effect on October 1, 2023.

KEY POINTS:

• NOTICES:
  • Notices of all board meetings must now specifically identify agenda items for the meetings and must be posted in a conspicuous place at least 48 hours in advance.
• OFFICIAL RECORDS:
  • HOA shall maintain a current roster of all members and their designated mailing addresses.
  • A member’s designated mailing address is the member’s property address unless the member sends written notice requesting a different mailing address for all required notices.
  • HOA must also maintain e-mail and facsimile numbers for all members receiving notice by electronic transmissions.
  • Email address is that which is initially provided unless member sends out notice stating otherwise.
• HOA FUNDS AND COMINGLING:
  • If an HOA collects a deposit from its members for ANY reason, those funds must be maintained separately and may not be comingled with any other HOA funds.
  • Upon completion of reason for which an HOA member made a deposit, the member may request accounting of where its funds were deposited, and the HOA must provide the accounting records within 7 days.
  • The HOA must return unused funds to the member within 30 days once the HOA receives notice that the project or reason for deposit was completed.
• OFFICERS AND DIRECTORS:
  • Officer, director, or manager who knowingly solicits, offers to accept, or accepts anything, service, or kickback for their own benefit from any person providing or proposing goods or services for the HOA is subject to damages under Stat. Sec. 617.0834.
  • An HOA board shall remove an officer or a director if they find that either the officer or director is in violation of this section.
  • If an officer or director is charged with any of the following, they must be removed from office:
    • Forgery of a ballot envelope or voting certificate used in a HOA election.
    • Theft or embezzlement of the HOA’s funds.
    • Destruction, or refusal to allow inspection of HOA’s official records in furtherance of any crime constitutes tampering under Stat. Sec. 918.13.
    • Obstruction of justice: If this criminal charge is pending the officer or director may not be appointed or elected to said positions, nor have access to the official records of the HOA, except pursuant to a court order.
  • If appointed by a developer, directors, and officers must disclose the relationship for every year they serve and must disclose any other activity that may reasonably be construed as a conflict of interest. Appointment by a developer does not create a presumption that the officer or director has a conflict of interest.
  • Directors and officers must disclose conflicts of interests 14 days prior to voting if on the issue or subject. Rebuttable presumption of a conflict of interest exists if:
    • Director, officer, or their relatives enter into a contract for goods or services with the HOA.
    • Director, officer, or relative holds an interest in a corporation, limited liability company, partnership, limited liability partnership or other business entity enter into a contract for goods or services with the HOA.
  • OBLIGATIONS OF MEMBERS:
    • HOA may impose reasonable fines, for a violation of its declaration, bylaws, or reasonable rules.
    • HOA board must first provide 14 days’ notice to the owner prior to imposing a fine or suspension. Notice must include description of violation, action required to remedy the violation, date, and location of hearing.
    • Owner has the right to attend by telephone or other electronic means.
    • After a hearing, the HOA shall provide written notice to the owner of their decision.
  • FRAUDULENT VOTING ACTIVITIES:
    • The acts listed below are fraudulent voting activity related to association elections and constitute a first-degree misdemeanor, punishable by up to 1 year in jail, and a $1,000 fine.
    • Willfully and falsely swearing or affirming an oath or affirmation, or willfully procuring another person to falsely swear or affirm an oath or affirmation in connection with voting activities.
    • Perpetrating, attempting to, or aiding in fraud, in connection with a vote that is cast or attempted to be cast.
    • Preventing a member from voting or from voting in the way they intended by fraudulently changing or attempting to change a ballot, ballot envelope, vote, or voting certificate.
    • Menacing, threatening bribery, or any other corruption attempt, to influence, deceive or deter a member when the member is voting.
    • Giving or promising anything of value with the intent to buy the vote of that member or another member to corruptly influence the casting of a vote. This section is inapplicable to food served to be consumed at an election rally, or a meeting, or to any item of nominal value used as election advertisement.
    • Using, or threatening to use, force, violence, or intimidation or any coercion tactic to induce or compel a member to vote or refrain from voting in an election or on a ballot measure.

 

HB 213: LIMITATION OF ACTIONS INVOLVING REAL ESTATE APPRAISERS AND APPRAISAL MANAGEMENT COMPANIES

SUMMARY:

Limits legal actions that can be taken against real estate appraisers and appraisal management companies.

KEY POINTS:

• An action to recover damages based on contract, tort, or other legal theory must be brought within 2 years after the alleged act or omission is or should have been discovered.
  • In no case can an action be brought more than 4 years after the appraisal services were performed or should have been performed.
  • This section is inapplicable to any administrative proceedings initiated by the Florida Real Estate Appraisal Board or Department of Business and Professional Regulation.
  • This section is inapplicable if there was fraud.
• This bill takes effect and applies to actions accruing on or after July 1, 2023.
• Any action accruing prior to July 1, 2023, which would not have been barred must commence the action by July 1, 2024.
• Any action not commenced by July 1, 2024, is barred.

 

SB 942: AUTHORIZATION OF RESTRICTIONS CONCERNING DOGS 

SUMMARY: 

This new law removes breed-specific regulations, but otherwise allows local governments and public housing authorities to adopts ordinances and/or policies that address the safety and welfare concerns caused by attacks of domestic animals.  

KEY POINTS:  

• This law goes into effect on October 1, 2023. 
• No regulation promulgated by a local government or public housing authority can be specific to breed, weight, or size.  

 

HB 837: LIMITATION OF LIABILITY FOR CRIMINAL ACTS OF THIRD PARTIES ON MULTIFAMILY RESIDENTIAL PROPERTIES

SUMMARY:

The bill largely has to do with tort reform; however the legislation contains two key components that protects both individuals and corporations form criminal liability at least in part under certain circumstances. HB 837 creates two new statutes Fla. Stat. 768.0701 (2023) and Fla. Stat. 768.0706 (2023).

KEY POINTS:

• Fla. Stat. 768.0701 (2023) – PREMISES LIABILITY FOR CRIMINAL ACTS OF THIRD PARTIES
  • Under this section a trier of fact must consider the fault of all persons who contributed to the injury if: a person who was lawfully on the property and is injured by the criminal acts of a third party brings an action for damages against the owner, lessor, operator, or mangers of commercial or real property
• Fla. Stat. 768.0706 (2023) ­– MULTIFAMILY RESIDENTIAL PROPERTY SAFETY AND SECURITY; PRESUMPTION AGAINST LIABILITY
  • This section applies to multifamily residential properties – meaning a residential property consisting of at least five dwelling units.
  • The owner or principal operator of multifamily residential properties has a presumption against liability in connection with criminal acts committed by third parties (excluded employees or agents of the owner or operator) if the following is implemented:
    • A security camera at entrance and exit points, that records and retains at least 30 days of video footage;
    • A lighted parking lot, with an illuminated intensity of at least an average of 1.8 foot-candles per square foot at 18 inches above the surface from dusk until dawn;
    • Lighting from dusk until dawn in all walkways, laundry rooms, porches, and common areas.
    • At a minimum a 1-inch deadbolt on each dwelling unit door;
    • Locking devices on each window, exterior sliding doors, and any other doors not used for community purposes;
    • Locked gates with key or fob access for pool areas; and,
    • Peepholes, or door viewers on each dwelling unit door, that does not include a window or where there is no window next to the door.
  • By January 1, 2025:
    • The owner or principal operator of a multifamily residential property must conduct a crime prevention through environmental design assessment that is no more than 3 years old. These assessments must be performed by law enforcement agency, or a Florida Crime Prevention through Environmental Design Practitioner designated by the Florida Crime Prevention Training Institute of the Department of Legal Affairs.
    • The owner or principal operator must provide current employees with crime and deterrence safety training. After January 1, 2025, the  owner or principal operator must provide training to employees within 60 days of his/her/their hire date.

 

SB 7052: INSURER ACCOUNTABILITY

SUMMARY:

Provides increased consumer protections and increased insurer accountability.

KEY POINTS:

• EXAMINATION OF INSURERS:
  • Insurers are now subject to examination by the Office of Insurance Regulation (“Office”) as needed. At a minimum, high-risk insurers must be examined at least once every 3 years, and average and low-risk insurers must be examined at least once every 5 years.
• MARKET CONDUCT EXAMINATION:
  • Aside from the standard examination by the Office, residential property insurance businesses in this state may also be subject to market conduct examination if, after more than 90 days after the end of a hurricane, the insurer is in the top 20% of insurers based on a calculation of the ratio of hurricane-related property insurance claims to the number of property insurance policies in force.
  • Residential property insurance businesses in this state must be subject to market conduct examination if, after more than 90 days after the end of a hurricane, the insurer:
    • Is in the top 20% of insurers based on a calculation of the hurricane claim-related consumer complaints made about the insurer to the Department of Financial Services in relation to the insurer’s total number of hurricane related claims;
    • Is in the top 20% of insurers based on a calculation of the hurricane claims closed in relation to the claims filed on policies that provide wind or windstorm coverage;
    • Has made significant payments to its managing general payments since the hurricane or is identified by the Office as needing a market conduct exam.
  • A liability insurer may be subject to enhanced enforcement penalties if the Office finds a practice of the insurer failing to do the following when responding to covered liability claims (including but not limited to what is listed below):
    • Assign a licensed and appointed insurance adjuster to diligently investigate if coverage is provided under the policy;
    • Evaluate the claim fairly & honestly;
    • Request information from the insured that may be reasonably necessary to evaluate or settle a claim;
    • Conduct communication with candor;
    • Explain to unrepresented individuals matters at a level expected of a layperson.
  • ADMINISTRATIVE FINE IN LIEU OF SUSPENSION OR REVOCATION:
    • If the Office determines that grounds exist for discretionary revocation or suspension, in lieu of doing so the Office may impose a fine on the insurer.
      • Non-willful violation: $25,000 per violation (up to $100,000) for all violations arising out of the same action related to a Governor declared state of emergency. $12,500 per violation (up to $50,000) for all other non-willful violations arising out of the same action.
      • Knowing and willful violations: $250,000 per violation (up to $1,000,000) for all knowing and willful violations arising out of the same action related to a Governor declared state of emergency. $100,000 per violation (up to $500,000) for all other knowing and willful violations arising out of the same action.
    • RESIDENTIAL PROPERTY INSURANCE; RATE FILINGS:
      • Rate filing for residential property insurance must include based on life expectancy (“actuarially”), reasonable discounts, credits, rate differentials or reductions in deductibles for properties in which fixtures or construction techniques that can reduce the loss in a windstorm have been implemented.
      • Effective October 1, 2023, each insurer subject to the requirements of this section must list on their website hurricane mitigation discounts available to policyholders.
    • CITIZENS PROPERTY INSURANCE:
      • Citizens Property Insurance may not determine that a risk is ineligible solely because such risk has unrepaired damage in which a claim was filed with Florida Insurance Guaranty Association.
      • Applies to claims until 24 months after the Florida Insurance Guaranty Association services or closes the claim, whichever is earlier.
    • NOTICE OF CANCELLATION, NONRENEWAL, OR RENEWAL PREMIUM:
      • With respect to any personal lines or commercial residential property insurance policies, an authorized insurer may not cancel or non-renew:
        • For 90 days after the property has been repaired after a hurricane or wind loss if the damage was a result of a declared state of emergency and the filing of an order by the Commissioner of Insurance Regulation.
        • If the damage is a result of covered peril not listed above, then until the earlier of when the property has been repaired or 1 year after insurer issued final payment.
      • An insurer may cancel:
        • After 10 days’ notice of nonpayment.
        • 45 days’ notice of material misstatement of fraud related to a claim.
        • If insurer determines insured has unreasonably delayed a claim.
        • If insurer has paid policy limits.
      • If insurer elects to non-renew a property that has been damaged, then insurer must provide 90 days’ notice that insurer intends to non-renew 90 days after the repairs.

 

LEGAL DISCLAIMER:

The information in this program, and corresponding materials, is provided for educational and informational purposes only, and should not be construed as legal advice or as an offer to perform legal services on any subject matter. The content contains general information and may not reflect current legal developments or information. The information is not guaranteed to be correct, complete, current, or suitable. MIAMI Association of REALTORS® (“MIAMI REALTORS®”) makes no warranty, expressed or implied, about the accuracy or reliability of the information in this program or materials. The materials may contain technical or typographical errors. MIAMI REALTORS® does not guarantee their accuracy, completeness, or suitability. Recipients of the information in this program or materials should not act or refrain from acting on the basis of any information without seeking appropriate legal advice on the particular facts and circumstances at issue from an attorney licensed in the recipient’s state. MIAMI REALTORS® expressly disclaims all liability with respect to actions taken or not taken by the recipient based on any or all of the information in this program and materials. Communications with or from MIAMI REALTORS® or do not constitute or create an attorney-client relationship between any recipients. Nothing herein is intended to create an attorney-client relationship and shall not be construed as legal advice. IN NO EVENT SHALL MIAMI REALTORS® BE LIABLE FOR ANY SPECIAL, INDIRECT, OR CONSEQUENTIAL DAMAGES RELATING TO THESE MATERIALS OR FOR ANY USE OF OR RELIANCE ON THESE MATERIALS.