Monday, December 6, 2021

Major Changes for Auto Insurance and Homeowners Insurance

On the final day of the Florida 2021 legislative session, lawmakers made major changes to the state’s auto insurance and homeowners insurance systems.

Auto Insurance SB54

The passage of this bill repeals the states no-fault personal injury protection (PIP) system. “This is a long fought and complex debate on auto insurance overhaul,” says Ellsworth Buck, Vice President of GreatFlorida Insurance.

The passage of this bill moves Florida from a no-fault auto insurance system to an automobile liability system. Florida will join 48 states that currently have bodily injury insurance systems. Floridians will now be required to carry bodily injury coverage starting at $25,000 for all drivers.

The bill is intended to reduce auto insurance rates while bringing a reduction to widespread fraud. NU Property & Casualty Group opposed the bill’s passage, believing the intentions are good, however it doesn’t go far enough with reforms and will only lead to an increase in auto insurance costs and an increase in uninsured motorist on Florida roads.

If signed by DeSantis, the new law will take effect January 1, 2022.

Property Insurance SB76

This bill addresses some of the issues with the states homeowners insurance market.

“While this bill certainly doesn’t solve all the problems with the rising cost in homeowners insurance, hopefully it is a step in the right direction,” says Buck with GreatFlorida Insurance.

According to the Insurance Journal, the legislation was significantly revised from its original draft. Some of the changes include:

  • Reducing the claims deadline on all claims to two years from the date of loss, except for supplemental claims which are given an additional year.
  • Makes it illegal for roofing contractors or any person acting on their behalf to make a “prohibited advertisement,” including an electronic communication, phone call or document that solicits a claim.
  • Prohibits the offering of anything of value for performing a roof inspection, an offer to interpret an insurance policy or file a claim, or adjust the claim on the insured’s behalf.
  • Prohibits a contractor from providing repairs for an insured with a contract for repairs that does not include a detailed cost estimate of the labor and materials required to complete the repairs.

Removed from the final legislation was allowing insurers to include policy language that offers actual cash value instead of full replacement cost on roofs.

If signed by DeSantis, the new law will take effect, July 1, 2021.

GreatFlorida Insurance agents can walk you through the changes with auto insurance and homeowners insurance as well as answer any of your questions. Give GreatFlorida Insurance a call today.
Ellsworth Buck
Since 2003, Ellsworth has served as Vice President of GreatFlorida Insurance, a network of independent, franchised insurance agents located throughout Florida. During his tenure he has helped the franchise grow to more than 100 independent locations state wide. He is a 20+ year veteran of the Florida Insurance industry and is a graduate West Virginia University, earning his M.B.A in 1984. He lives with his wife in Stuart, Florida. For more information visit:

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