For Immediate Release  April 23, 2010

ICA SUPPORTS PROPERTY INSURANCE BILL AMENDMENT

TALLAHASSEE-Florida's Insurance Consumer Advocate Sean Shaw applauds Senator
Ronda Storms' amendment to Senate Bill 2044. Amendment 267518 would ensure
that Florida's insurance consumers, who have experienced a loss, are not
further victimized by undue hardship in the replacement of their personal
property. The amendment would further ensure prompt payment for the repaired
property.

Senate Bill 2044, before the amendments, would change a law adopted by the
Legislature in 2007. This legislation corrected unfair insurance practices
that prevented Florida's families from being able to recover insurance
proceeds to replace their personal property. Current law simply requires
insurers to pay full replacement cost for repairing and replacing damaged
property that is insured under a policy that provides replacement cost
coverage.

Consumers found themselves with the financial burden of assuming the
replacement costs for personal property, especially if they did not have
pictures or receipts and could not prove the loss of basic furnishings and
clothing. Senator Storms' amendment provides for replacement costs upfront
to allow consumers to replace their lost personal property on a schedule
that works for them, relieving consumers concerns about replacing seasonal
items such as clothing, decorations, etc.



There were even reports that insurers required that the items had to be
identical, for example an oak table was not a reimbursable replacement for a
cherry table or a loveseat for a sofa. These types of situations prompted
the Legislature to protect Florida families from these unfair situations.

When homeowners purchase insurance, they have the option to purchase actual
cash value coverage or replacement cost coverage for their personal
property. If the consumer chooses replacement cost for their personal
property, they pay an additional premium. They should have the right to have
claims paid in accordance with the contract they have purchased. If insurers
do not think the premium they are charging is sufficient, this issue should
be addressed in the insurers' rate filings. Senator Storms' amendment offers
the protection that Florida's insurance consumers deserve.

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The Insurance Consumer Advocate is appointed by Florida Chief Financial
Officer Alex Sink and is committed to finding solutions to insurance issues
facing Floridians, calling attention to questionable insurance practices,
promoting a viable insurance market responsive to the needs of Florida's
diverse population and assuring that rates are fair and justified.