• Florida does not require home insurance.small house, big house image by Nino Pavisic from Fotolia.com
  
  Home insurance helps people pay to repair or rebuild their damaged homes and to replace personal possessions lost during disasters and thefts. The state of Florida does not require homeowners to get insurance. However, Florida does have several laws that regulate insurance companies.
  
  

Office of Insurance Regulation

• The Florida Office of Insurance Regulation reviews whether proposed rates made by insurance companies are excessive, unfairly discriminatory or inadequate. The office must accept an insurance rate filing request if it complies with the law and is adequately supported by financial justification. The office can strike down an insurance rate if it is too burdensome or unreasonable for consumers. Insurance companies have to be transparent with the office about when rate increases will begin in Florida and the reasons for rate increases. A company's failure to be honest with the office can lead to fines and an investigation into the company's rates.
  
  

Property Insurance Reform Act

• The 2007 Florida Property Insurance Reform Act created new home insurance laws. Insurance companies in Florida can no longer refuse to offer home insurance if they offer automobile insurance. Insurers are prevented from raising rates or from dropping homeowners' policies during hurricane season. Further, insurers must provide a variety of policy choices to the consumer. Examples of these choices include different deductible amounts, the number of home possessions that can be insured and the inclusion of certain types of insured disasters. The choices should allow middle- and low-income homeowners to find a home insurance plan they can afford.
  
  

Mediation and Appraisal

• When there is a home insurance claim dispute that is greater than $500, Florida law requires the parties to undergo mediation. Mediation is a way for a neutral third party to make a judgment in a case in an informal setting. All mediators must be certified by the Department of Financial Services. If no mediation agreement is reached, a Florida consumer can invoke appraisal. In appraisal, the amount of the loss is determined by three impartial people. The homeowner and the insurer each selects a competent appraiser. The two appraisers then choose an impartial umpire who helps them evaluate the amount of the loss. Two of the three appraisers must sign off on an eventual award amount.