Florida Gov. Rick Scott signed into law sweeping reforms to stabilize the state's property insurance market.
"A healthy, stable and competitive private insurance market is critical to the success of Florida, given the hazards we face," he said in a May 18 press statement. "I commend the Florida Legislature, especially Sen. Richter and Rep. Wood, for bringing this important legislation forward."
The new law caps public adjuster fees, puts statutes-of-limitations on sinkhole and hurricane claims, and sets limits on what constitutes losses from sinkholes. The law also allows property insurance companies to hold back some money, for structural damage claims, until contractors are hired to do the work.
Insurance trade groups and the Florida Office of Insurance Regulation supported the reforms.
"This law will help restore a healthy, stable and competitive insurance market that provides economic security and peace of mind to policyholders," William Stander, assistant vice president and regional manager for the Property Casualty Insurers Association of America, said in a statement. "It is an excellent example of how government, industry and the people of Florida can work together to stabilize and improve the state's insurance market. It is a common-sense, long-term solution that utilizes market-based solutions and means stronger homes and safer families."