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Special Session D Report
The Legislature has just completed Special Session D, was scheduled for May 23rd through 27th, called by the
Governor to address property insurance. Mid-week, the Governor expanded the call to also include building and
condominium safety legislation. Below are summaries of each bill passed during the Special Session: SB 2D, SB
4D. Please let us know if you have questions or need further information.
Building/Condominium Safety: SB 4-D (sponsored by Senator Boyd, HB 5D its companion, sponsored by
Representative Perez). In addition to the sponsors, Senator Boyd and Representative Perez, this legislation was a
true team effort by Senate President Simpson, Senator Bradley, Senator Pizzo, and Senator Book, Representative
Trumbull, Representative Avila, and the Miami-Dade Delegation and many other members.
SB 4 addresses roof repairs as it relates to property insurance, and was amended to include condominium safety
recommendations which focus on stronger structural and building safety measures.
Highlights of the bill are below, with a more detailed summary also included.
Creates a 2 phase milestone inspection process for condos and HOAs, 3 stories or more, to provide that:
o Condos that are 30 years old or older will be inspected then and then again every ten years
o Condos that are within 3 miles of the coastline, will be inspected every 25 years and then again every
10 years
Provides for greater transparency and disclosure in that inspections are included in the condo’s official records
to be provided to buyers, renters and unit owners and to local building officials
Structural elements of condos such as roof, load bearing walls, electrical systems, the Condo’s board will not
be able to waive those reserves.
A structural reserve study will be performed by an architect or engineer every 10 years to guide the condo’s
board and direct those decisions.
Effective July 1, 2024, condominium and cooperative associations are prohibited from using reserves outside
of their purposes, waiving the reserves, or reducing the funding of reserves for certain structural components of
the property listed below.
Creates a statutory exception to the Florida Building Code so roofs that are more than 25% damaged, but already
comply with the 2007 Florida Building Code or a subsequent code, may be repaired instead of being required
to be replaced.
Milestone Inspections: A condominium association under chapter 718 and a cooperative association under chapter
719
Must have a milestone inspection performed for each building that is three stories or more in height by
December 31 of the year in which the building reaches 30 years of age, based on the date the certificate of
occupancy for the building was issued, and every 10 years thereafter.
If the building is located within 3 miles of a coastline as defined in s. 376.031, they must have a milestone
inspection performed by December 31 of the year in which the building reaches 25 years of age, based on the
date the certificate of occupancy for the building was issued, and every 10 years thereafter.
The condominium association or cooperative association must arrange for the milestone inspection to be
performed and is responsible for ensuring compliance with the requirements of this section. The condominium
association or cooperative association is responsible for all costs associated with the inspection.
The Milestone inspection consists of two phases with requirements for each outlined in the legislation.
Structural Integrity Reserve Study: This study, created in the bill and is defined as a study of the reserve funds
required for future major repairs and replacement of the common areas based on a visual inspection of the common
areas. It may be performed by any person qualified to perform such study, however, the visual inspection portion
of the structural integrity reserve study must be performed by an engineer licensed under chapter 471 or an architect
licensed under chapter 481.
At a minimum, a structural integrity reserve study must identify the common areas being visually inspected, state
the estimated remaining useful life and the estimated replacement cost or deferred maintenance expense of the
common areas being visually inspected, and provide a recommended annual reserve amount that achieves the
estimated replacement cost or deferred maintenance expense of each common area being visually inspected by the
end of the estimated remaining useful life of each common area.
Structural integrity reserve study - Time frame and elements included: An association must have a structural
integrity reserve study completed at least every 10 years after the condominium’s creation for each building on the
condominium property that is three stories or higher in height which includes, at a minimum, a study of the
following items as related to the structural integrity and safety of the building:
a. Roof.
b. Load-bearing walls or other primary structural members.
c. Floor.
d. Foundation.
e. Fireproofing and fire protection systems.
f. Plumbing.
g. Electrical systems.
h. Waterproofing and exterior painting.
i. Windows.
j. Any other item that has a deferred maintenance expense or replacement cost that exceeds $10,000 and the failure
to replace or maintain such item negatively affects the items listed in subparagraphs a.-i., as determined by the
licensed engineer or architect performing the visual inspection portion of the structural integrity reserve study.
Further requirements of this study are outlined in the legislation.
SB 4D has signed and been sent to the Governor (Governor must act on this bill by 06/02/22).
Link to SB 4D: https://www.flsenate.gov/Session/Bill/2022D/4D/BillText/er/PDF
Property Insurance (SB 2D sponsored by Senator Boyd and its companion, HB 1D sponsored by Representative
Trumbull) Both the House and Senate leadership, as well as the Governor, who called the special session to address
property insurance, put forth agreed upon legislation with the goal of stabilizing Florida’s property insurance market
with provisions included to improve choice and increase transparency between homeowners and insurance
companies, while reducing rates over time. The legislation also includes anti-fraud and legal reforms to reduce
frivolous litigation that drives up costs for insurance companies and policyholders. Below is a brief summary of the
legislation.
Clarifying Options For Roof Repair And Replacement
The legislation allows property insurers to offer homeowner’s policies that include a roof deductible with an
actuarially sound premium or credit. Policyholders will have the option to choose the insurance policy that best
suits their needs. The bill also includes specific consumer protections that prohibit insurers from refusing to write
policies on homes with roofs less than 15 years old.
Provides Homeowners the Option of Roof Deductible Policies: the bill allows residential property
insurers to require a separate roof deductible that may not exceed the lesser of 2% of the policy dwelling
limits or 50% of the roof replacement costs. Policyholders who select a roof deductible must receive a
premium credit or discount. The roof deductible does not apply to: a total loss to the primary structure that
is caused by a covered peril; a loss caused by a hurricane; a roof loss resulting from a tree fall or other
hazard that damages the roof and punctures the roof deck; or, a roof loss requiring repair of less than 50%
of the roof.
Improving Accessibility & Protecting Policyholders From Nonrenewal: Under SB 2D insurers may not
refuse to write or renew policies on homes with roofs that are less than 15 years old solely because of the
roof age, or for roofs that are at are over 15 years old if an inspection shows that the roof has five years or
more of useful life left.
Matching Grants For Home Hardening: The bill expands the My Safe Florida Home Program to include
hurricane mitigation inspections and matching grants for retrofitting of homesteaded single family homes with a
value of $500,000 or less, with the goal of making these upgrades financially attainable. Grants will be awarded on
a matching basis with the program providing $2 in grant funds for every $1 provided by the homeowner. Applicants
may receive up to $10,000 in program funds.
Enhancing Insurer Access To Reinsurance With Savings Passed On To Consumers: The bill authorizes $2
billion for a new Reinsurance to Assist Policyholders (RAP) program for insurers. This new program allows insurers
to obtain reimbursement for hurricane losses below the insurer’s Florida Hurricane Catastrophe Fund retention.
Insurers that participate in RAP for 2022 must reduce their policyholder’s rates in a rate filing by June 30, 2022, to
reflect the savings from RAP. Insurers that defer using RAP until 2023 must reduce policyholder rates to reflect
savings in a rate filing by May 1, 2023.
Increasing Insurer Transparency: SB 2D requires insurers to notify policyholders that they can request a copy
of any detailed estimate of the amount of the loss determined by the adjuster. After receiving the request, the insurer
must send the detailed estimate to the policyholder within seven days. Further, the bill requires insurers to provide
a reasonable explanation in writing of the basis for the payment, denial, or partial denial of a claim. If the claim
payment is less than specified in any insurer’s detailed estimate of the amount of the loss, the insurer must provide
a reasonable explanation in writing of the difference.
The bill also directs the Office of Insurance Regulation (OIR) to make publicly available data detailing the number
of policies, amount of premium, number of cancellations, and other data for each property insurer and specifies that
this information is not a trade secret.
Holding Insurers Accountable: Several Florida property insurers have failed in the last year alone, resulting in
tens of thousands of canceled policies. Timely analysis and reporting are key to understanding how to prevent future
failures. SB 2D requires an analysis of why an insurer failed within four months of the Department of Financial
Services being appointed as a receiver in liquidation proceedings.
Additionally, the bill strengthens the OIR’s regulatory oversight. SB 2D creates a new property insurer
investigations unit to increase regulatory oversight and requires OIR to provide enhanced monitoring whenever the
office identifies significant concerns about an insurer’s solvency, rates, proposed contracts, underwriting rules,
market practices, claims handling, consumer complaints, litigation practices and outcomes, and other issues related
to compliance with the insurance code.
Reducing Frivolous Litigation: SB 2D codifies that attorney fee multipliers only be awarded in rare and
exceptional circumstances, clarifies when a bad faith suit may arise, and prohibits the ability to transfer the right to
receive attorney fees in property insurance litigation.
To curb unscrupulous roof claims, the bill enhances reforms passed in in SB 76 (2021), prohibiting written
contractors’ solicitations that encourage consumers to make a property insurance claim for roof damage unless the
solicitation provides notices.
SB 2D has signed and been sent to the Governor (Governor must act on this bill by 06/02/22).
Link to SB 2D: https://www.flsenate.gov/Session/Bill/2022D/2D/BillText/er/PDF