How Does Florida State Bill 2D Impact Homeowners and Their Roofs?

Due to Florida’s unique challenges, property insurance is a contentious subject in the state. In May 2022, Florida adopted a pivotal piece of legislation that directly affected property insurers and homeowners. The House passed Florida Insurance Reform Law 2B-2D, more colloquially known as Florida State Bill 2D. Then, Governor Ron Desantis signed it into law. 

How does this bill impact you and your home? What do you need to know about the changes coming to insurance? We’ll answer everything you need to know about the bill and explain how it’ll affect homeowners!

What Are the Details of State Bill 2D?

In the past, roofing contractors leveraged assignment of benefits (AOBs) contracts to gain third-party authority over their customers’ homeowners’ insurance claims for roof damage. AOBs gave roofing contractors the legal right to file claims and collect insurance payments without their customers’ involvement. Additionally, these AOBs gave the contractor leverage to sue the property insurer to maximize profit on jobs. AOBs aren’t inherently nefarious, but they are frequently abused, which can cause a myriad of issues for both homeowners and property insurers.

 

 

Now, under the new legislation, attorney fees are no longer recoverable for contractors, and it’s become increasingly more difficult for contractors to abuse AOBs. The following are the primary characteristics of State Bill 2D:

• Reinsurance to assist policyholders
• Reduction of homeowner vulnerability to hurricane damage through state-funded mitigation inspections
• Prohibits contractors from soliciting roof claims unless it’s a situation where the consumer is responsible for its payment or deductible
• Separate roof deductibles
• Insurer claims handling

What Does State Bill 2D Mean for Florida Homeowners Moving Forward?

The goal of the new bill is to alleviate these 2 primary burdens for Florida homeowners:

1. Rising insurance costs
2. Frivolous lawsuits between contractors and insurers

We break down further what each of these will look like moving forward.

1. Rising Insurance Costs

Insurance companies were forced to increase premiums for Florida homeowners due to the combination of frequent hurricanes and the rise in frivolous lawsuits. Not only have costs increased, but obtaining insurance on roofs as young as 10 years of age has also become increasingly difficult.

Even in cases where new homeowners were able to obtain property insurance when they initially purchased their homes, some insurance companies gave ultimatums by contacting them six months to a year later to let them know they were canceling their policy. Homeowners would lose coverage unless they replaced their roofs within 60–90 days.

2. Frivolous Lawsuits Between Contractors and Insurers

With the abuse of AOBs, contractors forced insurance companies to either settle inflated claims outside of court or refute the claim and battle it out legally. In cases where the insurer wasn’t forced to pay the contractor, the insured homeowner was on the hook to pay the cost of an inflated claim or face getting a lien placed on their property.

If the contractor was unsuccessful in a legal case against the property insurer, they weren’t responsible for whatever legal fees the insurance company incurred. Furthermore, the insurer was required to pay the full cost of the claim plus the contractor’s attorney fees if the contractor won the case.

The new legislation now addresses these gaps in Florida legislation. This alleviates many of the issues that have plagued insurers and homeowners in the state for decades.

Why Protections Against Fraudulent Claims Are So Important

One of the reasons this bill is so important is because it protects homeowners who may not understand the threat a fraudulent storm damage claim poses. If a roofer tells you a repair should be filed as storm damage, you may be inclined to believe them, not realizing they could have ulterior motives for the claim. But a fraudulent claim from your roof can have serious consequences for you, including but not limited to much higher premiums or even losing your coverage altogether. The goal of the protections in this bill is to keep that from happening to Florida homeowners.

How Big D Is Helping Homeowners

One of the best ways to protect yourself from fraudulent claims, even with the added protections of Florida State Bill 2D, is by working with a reputable roofing company or, at the very least, getting a second opinion. At Big D Roofing, we strive to maintain a strong reputation through both our credentials and our customer service. With over 40 years of experience in our local community, you can rest assured knowing that our team will give you the most accurate information and assessment of the state of your roof. 

But if you went with a different roofer first and want to confirm their claims of storm damage, our team is more than happy to assist! We are certified for storm damage inspections through HAG HAA training, meaning we have the most up-to-date training on identifying storm damage on a roof. Our team can confirm any claims previous roofers may have made, but we don’t handle insurance claims directly—so the decision to file a claim is still in your hands. We just provide the information you need to make an informed decision about filing with your insurance. 

Trust Big D for Your Roofing Needs in Florida

Big D Roofing has always prided itself on setting the standard in the roofing industry in the North Central Florida area. Not only are we well-trusted in our community, but we also follow industry best practices and use high-quality roofing materials to give our customers beautiful roofs that will last. If your roof has damage or you want to double-check a claim made by another roofer, there’s no better team to turn to than Big D Roofing. Get in touch with us today to get your roof inspection scheduled!