GALLAGHER ANNOUNCES REFORMS TO HELP PROTECT AND PREPARE FLORIDIANS FOR CATASTROPHES
Tom Gallagher, Florida’s chief financial officer, announced the next round of homeowner-friendly insurance reforms to better protect and prepare Floridians for a catastrophic event, and to empower them with information they need to shop for property coverage. The new reforms, initiated by a special committee created by Gallagher, include consumer coverage checklists and quick check guides to help Floridians purchase adequate coverage to rebuild and to repair their homes after a catastrophe.
“I have been fighting for these changes for many years,” said Gallagher, who heard consumers repeatedly say during town hall meetings around the state that clear, easy-to-read insurance policies were needed. “One area where our state must improve is in preparedness – these changes will help consumers better understand what their homeowners policies really cover, and empower them to be better prepared before the next storm hits.”
In the wake of the 2004 hurricanes, state lawmakers gave Gallagher the authority to appoint a Standard Personal Lines Advisory Committee to develop a checklist and a standard homeowners policy. The committee, comprised of ten members, began its work in August 2005.
The committee developed a Consumer Quick Check Guide that outlines specific coverage and limits generally provided under most homeowners’ insurance policies. Gallagher said this guide will be a valuable tool to consumers when shopping for coverage. The committee also drafted a Checklist of Coverage, which offers homeowners a comprehensive checklist to use when purchasing property coverage. The committee further recommended that insurance agents be required to review this checklist with their customers at the time policies are purchased.
Gallagher said that, “Today’s reforms are important, and they will make a difference, but we must do more. I have proposed a comprehensive reform package that will provide immediate rate relief and long-term market stability and homeowner protections. That plan remains my priority for the upcoming legislative session.” The comprehensive plan Gallagher is advocating is needed to bring financial relief to homeowners, better prepare families for catastrophic storms, and help stabilize rates and improve coverage options for homeowners.
Following the 2004 hurricane season, Gallagher also advocated consumer protections which were approved by state lawmakers, including a single-season hurricane deductible, clear disclosure of deductible amounts in insurance policies, and a prohibition of insurance companies withholding claim payments for depreciation
Gallagher’s committee also recommended further work in the development of a standard homeowners policy, citing technical and legal resources were needed to properly address policy provisions written because of case law.
The committee’s recommendations were submitted to state lawmakers.
The new Consumer Quick Check Guides and Checklist of Coverage are attached, and the committee’s report and all appendices are available to Floridians on the Department of Financial Services (DFS) website at www.MyFloridaCFO.com/StandardPersonalLinesAdvisoryCommittee/.
Members of the Standard Personal Lines Advisory Committee