Opinion ID: 2719924
Heading Depth: 2
Heading Rank: 2

Heading: The Sheltons’ Renewal Argument

Text: We reject the Sheltons’ argument that the statutory definition should not apply because their policy is a renewal policy and “Liberty Mutual failed to notify the Sheltons of the substantive changes to their insurance policy’s sinkhole loss coverage.” Because the Sheltons had a policy with Liberty Mutual before the legislature added the definition of “structural damage” in May 2011, the Sheltons now contend that it was incumbent upon Liberty Mutual to notify them of the 10 Case: 13-15371 Date Filed: 08/21/2014 Page: 11 of 12 legislative change when the Sheltons renewed the policy in July 2011. We disagree. The Florida legislature has provided concrete instructions with respect to renewal policies: an insurer must give written notice to the insured when “[a] renewal policy . . . contain[s] a change in policy terms.” Fla. Stat. § 627.43141(2); see also Marchesano v. Nationwide Prop. & Cas. Ins. Co., 506 So. 2d 410, 413 (Fla. 1987) (“Absent a notice to the contrary, the insured is entitled to assume that the terms of the renewed policy are the same as those of the original contract.”). However, “the application of mandated legislative changes is not a change in policy terms.” Fla. Stat. § 627.43141(1)(a) . As such, even assuming without deciding that the addition of the statutory definition of “structural damage” in § 627.706(2)(k) would otherwise constitute “a change in policy terms,” the notice requirement of § 627.43141(2) is not triggered for this legislative change.