New Home Sales Up as Mortgage Rates Moderate
While new home sales received a slight bounce in November from lower mortgage rates, the housing market continues to struggle because of ongoing supply chain disruptions, elevated construction costs and challenging affordability conditions. Sales of newly built, single-family homes in November increased 5.8% to a 640,000 seasonally adjusted annual rate, according to newly released data from HUD and the Census Bureau. On a year-to-date basis, new home sales are down 15.2%. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of cons- truction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the November reading of 640,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory remained elevated at an 8.6 months’ supply (of varying stages of construction). A measure near a 6 months’ supply is considered balanced. The count of homes available for sale, 461,000, is up 18.2% over last year. A year ago, there were just 32,000 completed, ready to occupy homes available for sale. By November 2022, that number increased to 64,000, reflecting flagging demand and more standing inventory due to lower sales. Regionally, year-to-date, new home sales fell in all four regions, down 3.6% in the Northeast, 22.3% in the Midwest, 13.1% in the South and 19.3% in the West.
VOLUME 1, ISSUE 1 JANUARY 2023
Greetings fellow Gold Coast Builders Association Members and Potential Members, I’m Frank Coppola and I have one introductory word for you – culture. I’m proud to serve the Gold Coast Builders Association as President for 2023. I am NOT serving as President of GCBA – I am serving GCBA as President. There is a big difference. For me, leadership embodies the manner and importance in which the responsibilities of the office are implemented. To me, leadership establishes the culture of an organization. I remember a professor asking me to write a 30-page paper on “What is culture?”. No, there aren’t 29 more pages in this article, it was the question that resonated and made a difference to me. When I went to my first International Builders Show, I took a Master Education Class titled “Shaping Your Company Culture to Improve Profits”. It was an awesome class. The speaker shared Profit & Loss growth over a decade. He demonstrated the practicality of a successful culture so well that it brought my professor’s culture paper to life. The culture of GCBA and the FHBA greatly interests and influences me. So much that I’ve spent a great deal of time thinking about WHY. Why does this culture matter to me? The answer is I like do-ers. I love winners. In high school I was the kid who was constantly picked on and afraid. So much that I never made Junior Varsity, let alone Varsity of any sports team. However, that didn’t change wanting to be part of a winning team. Fast forward – through martial arts, I was able to build self-confidence by empowering others. I’ve awarded 356 Black Belt Certificates since I started teaching martial arts in 1990. It is much more fun to help people not get bullied than it is to beat someone up. It’s a culture developing tool. When the pandemic shut down my 30-year tenure of teaching martial arts, I found myself in Florida engaging in a new culture – the GCBA culture. The culture of the GCBA is surprisingly similar to the culture of my martial arts school in that there is no room for ego. You would never guess who the 7th, 8th, or 9th degree Black Belts were if you were in a room with them. At a recent GCBA event, I asked a young adult, who was a new guest, if he could pick out of the crowd the FHBA Builder of the Year, the President of Toll Brothers, the President of DR Horton, the guy who drove the McClaren to the party, the woman who as an Assistant Operations Manager could give him all the work he could ever dream of. The young man almost fell off his seat. “Really, those people are here?” he said. I laughed as I said “Yes, and you spoke with all of them”! I thought to myself as I spoke, “You don’t have to be the 900-pound gorilla in the room to show leadership”. You see, the captains of industry THROUGHOUT Gold Coast Builders Association do not need to promote themselves. In fact, none of the leaders at the event were promoting themselves. They were the ones taking and asking questions trying to help others – if you help someone else get better at something, you in turn are learning something! Many organizations do focus attention on the top of the organization. What is the absolute most exciting thing to me about GCBA is that the doers, the leaders, and the winners ALL know that what we do it is not about them. It’s about everyone. The culture of GCBA is fostering business development, personal growth, and gives each of us the opportunity to shape and move our industry. The desire to help others in a collaborative manner is WHY it matters. It’s our culture. It is the thrill of a lifetime to be part of the GCBA team, and like many others in our organization, I am dedicated to serving you and continuing the wonderful culture we each foster and grow. Respectfully yours, Frank R. Coppola, III GCBA 2023 President
GCBA President’s MessagE January 2023
Materials Prices Eased in November The prices of building materials decreased 0.3% in November (not seasonally adjusted) following 0.5% and 0.1% declines in September and October, respectively, according to the latest Producer Price Index (PPI) report. The index has decreased five of six months for the first time since 2015. The PPI for goods inputs to residential construction, including energy, fell 0.8% in November. The index was led lower by a 5.3% drop in energy input prices as the PPIs of regular unleaded gasoline and No. 2 diesel fuel decreased 6.7% and 4.5%, respectively.
NAHB Responds to Rule oN INDEPENDENT CONTRACTORS The U.S. Department of Labor recently published a proposed rule updating the test for determining whether a worker is an employee under the Fair Labor Standards Act (FLSA) or an independent contractor. NAHB has submitted formal comments opposing the proposed rule. The language of the new test introduces new, undefined, vague terminology that would reclassify legitimate independent contractors into employees, affecting many industries, including residential construction that rely on the subcontractor business model. FHA Announces Increases To Loan Limits in 2023 The FHA on Dec. 1 announced its loan limits for 2023. The nation-wide rise in median home prices indicates most buyers across the country will see increases. The FHA floor will increase from $420,680 to $472,030 for single-family home loans. The floor amount is the lowest the FHA loan limit can be for any area of the country. FHA’s ceiling loan limits, the maximum loan amount the agency will insure, will increase from $970,800 to $1,089,300 for a single-family property, even higher in some states and territories. Looking at the 2023 Economic Outlook Where is the housing industry heading in 2023? NAHB Chief Economist Robert Dietz recently discussed key data to help answer that question during a webinar with Pro Builder Editorial Director Rich Binsacca. The webinar provided an overview of the impact of interest rate hikes, supply chain issues, and rising labor and materials costs on residential construction. A summary document with key highlights is also available to download.
Action Needed on Transformers NAHB and other industry groups are urging policymakers to resolve an ongoing supply chain shortfall that is affecting delivery of much-needed transformers and other electrical switch gear. The scarcity of transformers is having a dramatic effect on new construction projects and repairs of homes, commercial buildings and infrastructure. Urge your members of Congress to support the implementation of the Defense Production Act to address the supply chain crisis for electric distribution transformers.
MEET YOUR 2023 OFFICERS & BOARD
GCBA 2023 CALENDAR OF EVENTS
GCBA 2023 Leadership List
Executive OFFICERS PRESIDENT Frank R. Coppola lll, Coppola Brothers 1ST VP Michael Nunziata, 13th Floor Homes 2ND VP Jon Long, Ryan Homes VP FINANCE Steve Karp, Melamed & Karp PA ASSOCIATE VP Anthony Macaluso, Universal Engineering Sciences 2nd Assoc. VP Ethan Nelson, U.M.I. IMMEDIATE PAST PRESIDENT Rafael Roca, D.R. Horton Homes Board of Directors Builder Members Mark Richards, Stock Custom Homes Mark Kruger, Hierromat Development Mark Welsh, Lennar Homes Herb Tremble, Master Contractor and Subcontractor Association of Florida Matt Ellish, Ellish Custom Homes Michelle Mockenhaupt, D.R. Horton Associate Members Mark Anderson, U.S. Bank Sam Yates, Yates & Associates Rick Baxter, Palm Beach Post Andy Wyman, Wyman Legal Solutions Executive Officer: KT Catlin Bookkeeping: Kathy Bass FT Staff: Andrea Flores Design: Gregory J. Del Deo
January 19 – Installation & Awards Celebration – 6 PM January 28-February 2 – IBS in Vegas – All Day February – NAHB Career & Technical Education Month February 10 – Coffee & Conversation – 8:30AM March 3 – Coffee & Conversation – 8:30AM March 8 – Meet the Builder Speed Networking 3-5PM, 5-6PM drinks/networking March 16 – Quarterly Board Meeting – 4PM March 20-22 – FHBA Spring Leadership – All Day April 7 – Coffee & Conversation – 8:30AM April 26 – HHHH – 5:30 PM May 5 – Coffee & Conversation – 8:30AM May 19 – Annual Golf Outing – 8AM June – Annual Homeownership Month June 6-10 – NAHB Spring Leadership – All Day June 14 – GCBA Quarterly Board Meeting – 4PM June 21 – Hurricane Preparedness – 9AM July 7 – Coffee & Conversation – 8:30AM July 19-20 – SEBC – All Day August 4 – Coffee & Conversation – 8:30AM September 1 – Coffee & Conversation – 8:30AM September 6 – Quarterly Board Meeting – 4PM September 12 – PRISM – 6PM September 19-21 – NAHB Fall Leadership – All Day October 18 – Annual Meeting – 5PM October TBA – FHBA Fall Boards – All Day November 3 – Coffee & Conversation – 8:30AM November 9 – Annual Chili Cook-Off – 5:30PM December 1 – Coffee & Conversation – 8:30AM December 6 – Board Meeting & Full Strategic Planning for Next 5 Years 12-6PM December 13 – Holiday HHHH – 5:30PM
Check GCBA's Wednesday Mid-Week eMail for current Location & Registration Information.
CHECK WEBSITE FOR MOST CURRENT INFORMATION
If you are interested in serving on the Board and/or Becoming an Office please contact KT at 561-228-6137 or KT@GCBAFlorida.com
Real Estate Taxes Vary Widely Across the Union
Strong Job Growth, Year-Over-Year Construction sector jobs in the United States increased by 248,000, year over year — a 3.3% increase compared to November 2021. California added 37,200 jobs, which was the largest gain of any state, while South Carolina lost 4,700 construction sector jobs. In percentage terms, North Dakota had the highest annual growth rate in the construction sector by 15.6%. Over this period, South Carolina reported a decline of 4.5%. Year over year ending in November, 4.9 million total jobs have been added, marking a more than full recovery of the labor market from the COVID-19 pandemic-induced recession.
Real estate taxes vary widely across states, both in terms of annual taxes paid as well as effective tax rates. In 2021, the difference between average real estate taxes (RETs) paid by New Jersey and Alabama home owners was $8,336. New Jersey continued to have the highest average real estate tax bill per home owner ($9,151) as well as the highest effective tax rate (2.02%). Hawaii (0.28%) and Alabama ($815) were at the other end of the spectrum, boasting the lowest average effective tax rate and annual real estate tax bill, respectively. The differ- ence between the highest-taxed state (New Jersey) and lowest (Alabama) grew by $362 between 2019 and 2021. The map illustrates the concentration of high average property tax bills in the Northeast. In contrast, southern states (excluding Texas) boast some of the lowest real estate taxes for their homeowners.
Funding Bill Gives More to HUD Congress has approved a $1.72 trillion spending bill that will fund the government through fiscal 2023, which ends on Sept. 30, 2023. Of note to the housing community, the measure includes a total of $58.2 billion for the U.S. Department of Housing and Urban Development, an increase of $4.5 billion above fiscal year 2022. The HUD funding includes $85 million for a new "Yes In My Backyard" (YIMBY) grant program championed by NAHB that will incentivize affordable housing production. The new grant program rewards state and local jurisdictions advancing policies that increase the supply of affordable housing.
Contact Us - FHBA Private Insurance Exchange Phone: (800) 282-8626 Fax: (904) 212-2058 Address: FHBA Member Benefits 10739 Deerwood Park Blvd. Suite 200-B Jacksonville, FL 32256
MEMBERS SAVINGS & REBATE PROGRAMS
Welcome to our Newest Members!
ASSOCIATES Greenspoon Marder Elizabeth Adler info@gmlaw.com 954-491-1120 IDG LLC Anthony Macaluso tmacaluso@teamidg.us 561-262-1002 Max Granite LLC Fernanda Monteiro fern.monteiro11@gmail.com 561-451-6971 Palm Beach Xterior Matt Howard palmbeachxterior@gmail.com 253-441-1308 Rainstar Capital Group Ben Groenevelt ben.groenevelt@rainstarcapitalgroup.com 954-662-2416 The John Morgan McLachlan Agency, Inc. Karen Adamsbaum karen@insuranceagent.com 908-526-4600 X207 The Palms Bookkeeping Services Jill Yeagy Jill@thepalmsbookkeepingservices.com 508-325-2775 BUILDERS AAV Contractors Inc. Alvaro Velasquez aavgcontractors@gmail.com 954-660-0153 Atlantic Home Stuart MacGregor stuart@atlantichomefl.com 561-322-8270 EG Homes LLC Hunter Lancaster office@eghomesflorida.com 561-400-5528 If you sponsored one of these individuals please let KT know! We will be having year long contests and recognition for Recruiting & Retention!
CLICK HERE TO LEARN MORE
GCBA 2022 TOP RECRUITERS Michele Mockenhaupt – 17 KT Catlin - 11 Rafael Roca – 11 Michael Nunziata – 4 S. Robert August – 4 Frank Coppola – 3 Karl Albertson – 2 Ethan Nelson – 2 Chelsea Swanson - 2 Ray Puzitiello – 1 Beth Cohen – 1 Kate Nordstrom – 1 Jay Huebner - 1 Herb Tremble – 1 Jamil Mikati – 1 Kathy Macaluso – 1 Michael Brown – 1 Fred Pfister – 1 Jamie Janson – 1 Peggy West – 1 Gary Brown – 1 Tom Corona – 2 Ron Yuter – 1 Andrea Flores – 1 Ron Ellish – 1 Cynthia DeShields – 1 Susan Burns – 1 Cary Stamp – 1 GCBA SPIKE CLUB Members reach the GCBA Spike Club once you recruit 5 or more members in the current year. GCBA Spike Club Members will be recognized at Board Meetings & more!
GCBA 2023 mEMBERSHIP NEWS
THE COMMS REPORT
From time to time, you will see a new article here in our GCBA newsletter called the Comms Report. It’s communications from the Communications Committee to all of our Members and will include some noteworthy updates and announcements. For example, this newsletter, called News to Build On, has a new look. It’s one of several things being tweaked and fine-tuned to make sure all of our Members have easier access to information and news that can help grow business and expand our membership. Whether the content is curated from the NAHB or our very own Florida Home Builders Association, the Communications Team is reviewing and contributing information that will help increase your bottom line or save you dollars with innovative Members only savings programs. For content that is too lengthy to include in one article, we will point you to the appropriate (GCBA/FHBA/NAHB) website and let you know how to locate the information we are referencing. This issue of News to Build On also premiers a regular legal column called Legal Roundup. Legal Roundup is where our legal contributor and Board Member Andy Wyman, a licensed Florida attorney, will share legal information that may often be just the information you and others in our builder community need to avoid complicated legal tangles that can cost an arm and a leg in fees, fines, or even worse. Also pay attention to a new section of News to Build. On for some real NEWS. It’s an interactive article that will link you to the Gold Coast Builders Association Builders Spotlight Podcast. Yep, we have a podcast dedicated to our Members, interesting guests with information about our industry, and profiles of Members and our GCBA leadership. The Builders Spotlight is hosted by Sam Yates of Yates & Associates, Public Relations & Marketing and one of our new Associate Board of Directors and Chair of the Communications Committee. Sam has several decades of broadcasting experience that when combined with knowledge about our industry will make for some very interesting interviews. You can find the Builders Spotlight on all the most popular podcasting platforms and on our GCBA website. Our first two podcasts for 2023 are Presidential focused! That’s a teaser to get your attention and get signed up to never miss an exciting episode of the Builders Spotlight. We have a number of other items underway by the Communications Committee that will be shared in the near future. And we are always looking for your feedback as part of our continuous improvement cycle. As the members of the Comms Committee like to say, “Stay tuned!”.
In Florida, being an unlicensed contractor is illegal. It is a crime punishable as a first-degree misdemeanor for a first offense. Unlicensed contractors have no lien rights, cannot enforce their contracts, and if their work causes injury to a person or other property, the unlicensed contractor can suffer triple damages. You know what else is illegal? Aiding and abetting an unlicensed contractor. If you are a licensed contractor, under no circumstances should you enable an unlicensed person to contract with your license. Do not pull permits for unlicensed people. You can be charged criminally for doing so, and you will be responsible for the unlicensed contractor’s work (which is usually substandard). Florida provides a legal, legitimate way to qualify a second company to perform contracting under your license. And, when done correctly, it can provide a nice stream of second income for you. But you must go through the State to qualify a second business. There are pros and cons of doing this, so be sure to seek the advice of a lawyer before you do so. Unlicensed contracting, besides being illegal, erodes the public’s trust in contractors and the construction industry in general. Excellent licensed contractors suffer from unlicensed contracting because of the reputational damage caused to the industry (as an excellently licensed lawyer, I experience this as well). Plus, when you enable an unlicensed contractor, you are taking business away from other licensed contractors. This industry is hard enough as it is. Do not be an enabler of an unlicensed contractor. Report unlicensed contracting to Florida’s DBPR by calling (850) 487-1395.
LEGAL ROUNDUP
Andy Wyman, Esq. is the founder of Wyman Legal Solutions in Boca Raton, Florida, and holds a Martindale-Hubbell rating of “AV-Preeminent” – the highest such rating for legal ability and ethical standards. You can learn more about Andy at https://wymanlegalsolutions.com/about-us/. Email Andy at andy@WymanLegalSolutions.com with any thoughts you would like to share concerning this article. Andy Wyman, Esq. is a Member of the Board of Directors, Gold Coast Builders Association.
DO NOT ENABLE AN UNLICENSED CONTRACTOR
Re-engineering with Cold-Formed Steel (CFS)
Happy New Year FHBA Family! I sincerely hope you enjoyed a wonderful holiday season. Thank you to our dedicated members, staff, and consultants who braved a hurricane to make our Fall Conference in Margaritaville Kissimmee a success. Our meeting acted as a springboard to start 2023 with renewed enthusiasm and the benefits of lessons learned in 2022. For those who couldn’t make it, we missed you and pray you weathered the storm without incident. 2023 will start with our eyes immediately focused on the Florida Legislature and our legislative priorities. Our GA & Senior Officer teams made extraordinary progress with lawmakers last year on construction defect/statute of repose. Now it is our responsibility to see this issue gets over the finish line with a product beneficial to our industry and our clients. We must also shine a spotlight on the egregious abuses of “extraordinary circumstances” (impact fees) local governments are implementing all over our state. I encourage every member to strongly consider attending FHBA’s Spring Legislative Conference in Tallahassee March 20-22. Lawmakers NEED to see you and hear your thoughts DIRECTLY if we are to be successful! As you know, our advocacy efforts are only as effective as the strength of our membership Following the changes in Florida’s workers' compensation laws, FHBA lost its single greatest recruiting tool and we have been working to find a new benefit for our members. This year, Senior Officers and staff will be exploring new ideas for enhancing the value of membership while also promoting existing member benefit programs like the Florida Master Builder Certification which allows you to distinguish yourself in the marketplace. The Florida Home Builders Foundation is offering scholarships for students entering the trades and finetuning their hurricane response program to assist our members in their recovery efforts. We have exciting times ahead; however, we must remain vigilant of persistent industry headwinds. Ultimately workforce and affordability will be the greatest predictable threats we face in 2023. Individually, these challenges seem overwhelming. Remember you are not alone! You are a part of the FHBA family and have the collective wisdom and resources available to you as you navigate these challenges. Networking with your fellow members from across the state is a benefit often overlooked by individuals who haven’t participated at the state level. As you set your new year’s resolution for 2023, I have a challenge for you. Resolve to attend at least one FHBA meeting event… preferably Spring Legislative Conference. If you don’t see the full collective value of your membership dues AND the time away from your business, I want to hear from you. Commit to visiting your state representative or senator and watch your fellow members interact with them. You don’t have to say anything if you don’t want to, but I have a feeling you’ll want to engage. Thank you for your commitment to FHBA and your support. Together we will continue to do great things for our members and our industry!
Jam(b) Session: Let's Debate! The Pros & Cons of Stick vs. Systems Built
A Message From FHBA President, Frank Severino
Coffee & Conversations Networking Event: Learn Panelized Construction
THIS JUST IN
GCBA AT IBS
As this issue of News to Build On goes to press, there’s news that the GCBA will be well represented at the NAHB International Builders Show (IBS) in Las Vegas, January 31 – February 2. IBS is the premier show for the residential construction industry. It’s where movers and shakers go to discover hot new products, network with professionals from around the country and learn from leading experts. So it is no surprise that the Gold Coast Builders Association is well represented. Mark Kroger, COO, Hierromat Development and Eric Romeo will be taking part in no less than three important sessions during the Los Vegas convention. Two of the three sessions speak directly to topics related to Cold Formed Steel. See Links below.
CLICK HERE TO LISTEN TO THE FRANK COPPOLA EPISODE
The Gold Coast Builders Association has entered the world of podcasting with an informational and influential podcast called Builders Spotlight. For those who may not be totally up to date on podcasts, you can think of a podcast as radio on the internet you can receive anywhere at anytime as long as you have access to the internet. Unlike radio, which has a specific and usually limited range (with the exception of Sirius Radio on the internet), podcasts can be heard around the world by anyone who knows about the podcast or has a particular interest. Builders and building, for example. The Builders Spotlight Podcast is focused primarily on out GCBA Members and topics of interest to our membership. Once a podcast is recorded and is streaming on the nearly two dozen podcasting platforms (that is what the individual “radio channels” are called) such as Apple Podcasts, Spotify, iHeart Radio, Amazon Music, and even Alexa you are able to listen at your leisure at home, in your car, or office. While our podcast focus is local, the visibility of the internet means the most recent episodes of Builders Spotlight have been heard throughout the Gold Coast region of Florida, numerous North America cities, Europe (United Kingdom, France, and Slovakia), and even the islands of the Pacific Ocean and Australia. Those who subscribe to a particular podcast, like Builders Spotlight, are notified each time a new episode begins streaming 24/7 on a never ending basis. Once streaming, the episodes can be heard in any order or listened to as many times as you wish. Every guest we feature on the Builders Spotlight will receive a free copy of their particular episode to post on their website or to share via social media. All of you are encouraged to download and share episodes to share our news and information. Since podcasting is new for the GCBA, our newest episodes feature our outgoing GCBA President Rafael Roca and incoming President Frank Coppola. You will enjoy their frank and honest conversation with podcast host Sam Yates. Each episode is about 15 minutes which is the perfect length for listening.
CLICK HERE TO LISTEN TO THE RAFAEL ROCA EPISODE
Welcome to the Builders Spotlight Podcast!
Approximately a dozen upcoming episodes have been scheduled so far. If you have a suggestion for an episode of the Builders Spotlight or would like to be a featured guest, please contact host Sam Yates, Sam@Yatespro.com.
Over the past year, FHBA members have continued to express concerns regarding the unstable property insurance market and its potential to slow housing starts. Last week, Florida lawmakers convened a special session on insurance reform resulting in the passage of changes intended to stabilize the market. Despite criticism for failure to include mandatory rate reduction in the bill, leaders remained laser focused on stabilizing the market, and resisted any proposals (even well intended ones) that could jeopardize market stability. Below is a short list of elements in the approved bill. Keep in mind, the key provisions directly affecting construction beyond the benefits of a more stabilized market are the inability to execute an Assignment of Benefit and the reduction of time limits for filing a claim. • Attorney Fees – eliminates one-way attorney fees in suits arising in residential or commercial property insurance. • Assignment of Benefits (AOB) – eliminates a policyholder’s ability to execute an AOB for all property insurance policies (but maintains an existing carve-out for seller-to-buyer AOB related to an ongoing insurance claim). • Bad Faith – requires a breach of contract before a policyholder can sue a property insurer for settlement-related bad faith; acceptance of an offer of judgment or the payment of an appraisal award, alone, is not sufficient to support a lawsuit. • Offer of Judgment – makes attorney fees available for the prevailing party in offers of judgment (proposals for settlement) in property insurance cases; allows joint offers of judgment to be contingent on the acceptance of all joint offerees. • Florida Optional Reinsurance Assistance Program (FORA program) – creates a program that provides optional hurricane reinsurance that property insurers can purchase at near market rates. The FORA program is funded with $1 billion in general revenue for the 2023 year, and is supplemented by the premium insurers pay for coverage. • Notice of Claim – reduces the time limit for providing notice of a loss to a property insurer from two years to one year for initial or reopened claims and from three years to 18 months for supplemental claims. • Claims Investigation and Prompt Payments – changes the prompt pay statute to encourage property insurers to settle claims in a timely manner; requires the Office of Insurance Regulation (OIR) to collect certain additional data. • Mandatory Binding Arbitration – codifies that companies, for a premium discount, may issue an optional endorsement with consent from the policyholder that requires participation in binding arbitration to settle a claim. • Notice to Policyholders – requires that a property insurer place the “Flood Coverage Not Included” statement on the policy declarations page rather than just “with the policy documents.” • Office of Insurance Regulation (OIR) – enhances OIR’s ability to do market conduct examinations of property insurers after a hurricane, including examinations of managing general agents; allows OIR to discipline insurers for abuse of the appraisal process; adds information regarding the use of appraisal to the list of information that a property insurer must include in its quarterly reports to OIR; allows OIR to review property insurers’ forms, withdraw approval, and suspend an insurer’s ability to invoke appraisal for up to two years; requires OIR to add the names of insurers who abuse the appraisal process to its Property Insurer Stability Unit biannual report and post those names to its website; at OIR’s option, allows additional time for agents to place policyholders during insolvencies. • Citizens Property Insurance Corporation (Citizens) – for renewals and take-out offers (depopulation), establishes that if a renewal or take-out offer from an authorized insurer is within 20 percent of a policyholder’s Citizens premium, including surcharges and assessments being levied, a policyholder is in ineligible to remain in Citizens; for new policies, establishes that the risk is ineligible for Citizens coverage if the admitted-market policy is within 20 percent of a policyholder’s Citizens premium; requires Citizens residential lines policyholders to obtain flood insurance as a condition of having coverage from Citizens by 2027; provides a different glidepath for the rates that Citizens charges non-primary residents so that those policies become actuarially sound more quickly; authorizes Citizens to combine its three policyholder accounts into a single account upon eliminating all outstanding financing obligations to allow Citizens to use its entire surplus to pay claims. You may also note attorney fee and other tort reform provisions outlined above. During the campaign cycle, legislative leaders signaled a willingness to tackle reasonable tort reform and it appears they are living up to that promise with respect to insurance during this Special Session. Want to study the details a little more? Check out the buttons below!
CLICK HERE TO READ THE STAFF ANALYSIS
Legislature Passes Reforms to Stabilize Property Insurance Market
CLICK HERE TO READ THE COMPLETE BILL