New property insurance legislation to take effect Jan. 1 in Florida

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New property insurance legislation to take effect Jan. 1 in Florida
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The changes were made, in part, because of the recent hurricanes.

, which involves the state’s property insurance industry and was passed just a few weeks ago.

Insurance companies had been dropping customers and raising rates because of financial problems. So state lawmakers gathered for a special session this month. The Florida Legislature passedFirst, the law creates the Florida Optional Reinsurance Assistance Program, or FORA. It’s a billion-dollar fund that will act as a financial safety net to bail out insurance companies in the event of a major catastrophe like a hurricane.

The law also speeds up the claims process. New claims will have to be filed within one year instead of two.

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