HB 1215 - Property Insurance (2013)

• Requires insurers to offer homeowners three coverage options before issuing policies: replacement cost without law and ordinance coverage, actual cash value without law and ordinance coverage, and replacement cost with law and ordinance coverage (limited to 25% or 50% of dwelling limit).

• Makes sinkhole loss coverage available for additional premium with deductible options of $500, $1,000, $2,500, or $5,000, and redefines "structural damage" to include specific displacement, foundation issues, and building instability criteria.

• Requires insurers to initially pay for building stabilization and repairs according to professional engineer recommendations, subject to policy limits; insured must complete repairs within 12 months and may not accept rebates from repair contractors.

• Prohibits Citizens Property Insurance Corporation and other insurers from nonrenewing policies based on sinkhole loss claims if total payments do not exceed policy limits or if policyholder completed repairs per engineering recommendations.

• Establishes $25 daily penalty for insurers failing to file sinkhole reports with county court clerk within 30 days; creates first-degree misdemeanor penalty for property sellers who fail to disclose sinkhole claims and payments to buyers.