Fla. Restricts Insurers' Homeowner Cancellations

Fla. Restricts Insurers' Homeowner Cancellations

By Mark Ruquet

NU Online News Service, Nov. 24, 3:35 p.m. EST? Florida has approved an emergency rule that will bar insurers from canceling or non-renewing insurance policies for hurricane victims whose homes have yet to be repaired.

Florida's Gov. Jeb Bush and the state's Cabinet approved the regulation at the recommendation of the state's top insurance regulator Chief Financial Officer Tom Gallagher.

The measure is aimed at protecting some of the state's homeowner's who are still waiting for contractors to arrive and fix the damage from the hurricanes that struck the state this past storm season.

In a statement, Mr. Gallagher's office said the rule is effective until Dec. 31 and applies to all residential and commercial residential properties. It prohibits insurance companies from canceling insurance policies until 60 days after repairs are complete.

The state's lawmakers are also being asked to enact legislation to prevent consumers from being charged large multiple deductibles in the event of more than one storm strike.

More than 29,000 of the state's residents have paid more than $50 million in second, third and forth deductibles this year, the office of the Chief Financial Officer said.