Florida tightens condo insurance claim deadlines to ease disputes

by | May 3, 2024

New legislation signed into law this week sets clearer, stricter deadlines for filing loss assessment coverage claims by condominium owners, aimed at reducing legal disputes and streamlining the insurance claim process.

Gov. Ron DeSantis signed legislation on Thursday that mandates stricter timelines for filing loss assessment coverage claims for condominium unit owners, aiming to clarify insurance processes and limit disputes between owners and insurers.

The law addresses a gap in the state’s condominium insurance requirements, previously marked by vague guidelines for when claims for loss assessment coverage had to be filed. Such coverage covers condominium owners’ financial responsibilities for damages to shared property areas. The legislation is a section of the broader Consumer Protection bill, HB 939, which encompasses various enhancements to consumer rights.

The bill further mandates that a notice of claim for loss assessment coverage must be submitted within three years of the date of loss. Additionally, this notice must be provided to the insurer either within one year after the date of loss or within 90 days after a condominium association decides to levy an assessment due to the loss, whichever is later.

It also clarifies the “date of loss” as the actual day the damage occurred, a specification expected to prevent ambiguity and ensure that insurers and policyholders have consistent understanding. The adjustment is expected to streamline claims processing and reduce legal friction between condominium owners and insurance companies, potentially leading to faster settlements.

Other provisions within the bill include streamlines tax reporting for transactions via platforms like PayPal, mandatory cancellation clauses in emergency roof repair contracts, expanded definitions for depository institutions, updated CPA education requirements, and stricter disclosures for short-term health insurance plans.


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