FL H0501

Reduces the statute of limitations for lawsuits involving latent defects in construction from 10 years to 7 years after the date of actual possession, certificate of occupancy, abandonment of construction, or contract completion/termination.

For latent defects, the clock starts when the defect is discovered or should have been discovered with due diligence, rather than from project completion.

Applies to actions commenced on or after July 1, 2015, except that actions filed before July 1, 2016 that would not have been barred under the prior 10-year limit are grandfathered in.

Requires liability insurers to offer extended coverage beyond owner-controlled insurance programs for periods sufficient to protect against liability arising from actions within the new 7-year statute of limitations.

Effective date: July 1, 2015.