Title: Homeowner's Insurance

Summary: Providing an additional coverage option that offers the actual cash value of the property, etc.

Full Text:
An act relating to homeowner s insurance; amending s. 627.7011, F.S.; providing an additional coverage option that offers the actual cash value of the property; making technical and grammatical changes; providing an effective date. Be It Enacted by the Legislature of the State of Florida: Section 1. Subsection (1) of section 627.7011, Florida Statutes, is amended to read: 627.7011 Homeowners  policies; offer of replacement cost coverage and law and ordinance coverage options.  (1)  Before Prior to issuing a homeowner s insurance policy, the insurer must offer a po tential policyholder all each of the following option s: (a) A policy or endorsement providing that provides that any loss that is repaired or replaced will be adjusted on the basis of replacement costs to the dwelling,not exceeding policy limits, rather than actual cash value, but does not include including costs necessary to meet applicable laws and ordinances regulating the construction, use, or repair of any property or requiring the tearing down of any property, including the costs of removing debris. (b ) A policy or endorsement that provides that any loss that is repaired or replaced will be adjusted on the basis of the actual cash value of the dwelling,not exceeding policy limits, rather than replacement costs, but does not include costs necessary to meet applicable laws and ordinances regulating the construction, use, or repair of any property or requiring the tearing down of any property, including the costs of removing debris.(c) (b)  A policy or endorsement providing that, subject to other policy provisions, provides that any loss that is repaired or replaced at any location will be adjusted on the basis of replacement costs to the dwelling,not exceeding policy limits, rather than actual cash value, and also includes including costs necessary to meet applicable laws and ordinances regulating the construction, use, or repair of any property or requiring the tearing down of any property, including the costs of removing debris. However, additional costs necessary to meet applicable laws and ordinances may be limited to percent or percent of the dwelling limit, as selected by the policyholder, and such coverage applies only to repairs of the damaged portion of the structure unless the total damage to the structure exceeds percent of the replacement cost of the structure. An insurer is not required to offer the make the offers required by this subsection with respect to the issuance or renewal of a homeowner s policy that contains the provisions specified in paragraph (b) for law and ordinance coverage limited to percent of the dwelling limit, but except that the insurer must offer the law and ordinance coverage limited to percent of the dwelling limit. This subsection does not prohibit the offer of a guaranteed replacement cost policy. Section 2. This act shall take effect July 1, 2013.