THE BILL ITSELF
SB 1024
Coverage by Citizens Property Insurance Corporation
Florida Senate - 2026 SB 1024 By Senator Rodriguez 40-00458A-26 20261024__
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A bill to be entitled
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An act relating to coverage by Citizens Property
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Insurance Corporation; amending s. 627.351, F.S.;
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revising eligibility for coverage of residential
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structures in certain counties by Citizens Property
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Insurance Corporation; requiring the corporation to
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implement certain rate increases annually in such
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counties for single policies issued by the
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corporation; providing additional policies issued by
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the corporation which do not require policyholders to
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purchase flood insurance as a condition for
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maintaining the policies; providing an effective date.
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Be It Enacted by the Legislature of the State of Florida:
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Section 1. Paragraphs (a), (n), and (aa) of subsection (6)
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of section 627.351, Florida Statutes, are amended to read:
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627.351 Insurance risk apportionment plans.—
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(6) CITIZENS PROPERTY INSURANCE CORPORATION.—
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(a) The public purpose of this subsection is to ensure that
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there is an orderly market for property insurance for residents
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and businesses of this state.
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1. The Legislature finds that private insurers are
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unwilling or unable to provide affordable property insurance
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coverage in this state to the extent sought and needed. The
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absence of affordable property insurance threatens the public
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health, safety, and welfare and likewise threatens the economic
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health of the state. The state therefore has a compelling public
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interest and a public purpose to assist in assuring that
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property in the state is insured and that it is insured at
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affordable rates so as to facilitate the remediation,
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reconstruction, and replacement of damaged or destroyed property
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in order to reduce or avoid the negative effects otherwise
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resulting to the public health, safety, and welfare, to the
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economy of the state, and to the revenues of the state and local
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governments which are needed to provide for the public welfare.
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It is necessary, therefore, to provide affordable property
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insurance to applicants who are in good faith entitled to
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procure insurance through the voluntary market but are unable to
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do so. The Legislature intends, therefore, that affordable
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property insurance be provided and that it continue to be
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provided, as long as necessary, through Citizens Property
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Insurance Corporation, a government entity that is an integral
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part of the state, and that is not a private insurance company.
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To that end, the corporation shall strive to increase the
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availability of affordable property insurance in this state,
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while achieving efficiencies and economies, and while providing
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service to policyholders, applicants, and agents which is no
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less than the quality generally provided in the voluntary
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market, for the achievement of the foregoing public purposes.
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Because it is essential for this government entity to have the
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maximum financial resources to pay claims following a
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catastrophic hurricane, it is the intent of the Legislature that
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the corporation continue to be an integral part of the state and
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that the income of the corporation be exempt from federal income
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taxation and that interest on the debt obligations issued by the
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corporation be exempt from federal income taxation.
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2. The Residential Property and Casualty Joint Underwriting
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Association originally created by this statute shall be known as
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the Citizens Property Insurance Corporation. The corporation
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shall provide insurance for residential and commercial property,
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for applicants who are entitled, but, in good faith, are unable
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to procure insurance through the voluntary market. The
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corporation shall operate pursuant to a plan of operation
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approved by order of the Financial Services Commission. The plan
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is subject to continuous review by the commission. The
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commission may, by order, withdraw approval of all or part of a
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plan if the commission determines that conditions have changed
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since approval was granted and that the purposes of the plan
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require changes in the plan. For the purposes of this
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subsection, residential coverage includes both personal lines
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residential coverage, which consists of the type of coverage
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provided by homeowner, mobile home owner, dwelling, tenant,
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condominium unit owner, and similar policies; and commercial
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lines residential coverage, which consists of the type of
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coverage provided by condominium association, apartment
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building, and similar policies.
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3. With respect to coverage for personal lines residential
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structures:
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a. Effective January 1, 2017, a structure that has a
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dwelling replacement cost of $700,000 or more, or a single
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condominium unit that has a combined dwelling and contents
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replacement cost of $700,000 or more, is not eligible for
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coverage by the corporation.
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b. The requirements of sub-subparagraph a. do not apply in
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counties where the office determines there is not a reasonable
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degree of competition. In such counties a personal lines
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residential structure that has a dwelling replacement cost of
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less than $1.5 $1 million, or a single condominium unit that has
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a combined dwelling and contents replacement cost of less than
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$1 million, is eligible for coverage by the corporation.
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4. It is the intent of the Legislature that policyholders,
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applicants, and agents of the corporation receive service and
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treatment of the highest possible level but never less than that
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generally provided in the voluntary market. It is also intended
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that the corporation be held to service standards no less than
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those applied to insurers in the voluntary market by the office
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with respect to responsiveness, timeliness, customer courtesy,
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and overall dealings with policyholders, applicants, or agents
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of the corporation.
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5.a. Effective January 1, 2009, a personal lines
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residential structure that is located in the “wind-borne debris
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region,” as defined in s. 1609.2, International Building Code
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(2006), and that has an insured value on the structure of
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$750,000 or more is not eligible for coverage by the corporation
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unless the structure has opening protections as required under
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the Florida Building Code for a newly constructed residential
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structure in that area. A residential structure is deemed to
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comply with this sub-subparagraph if it has shutters or opening
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protections on all openings and if such opening protections
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complied with the Florida Building Code at the time they were
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installed.
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b. Any major structure, as defined in s. 161.54(6)(a), that
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is newly constructed, or rebuilt, repaired, restored, or
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remodeled to increase the total square footage of finished area
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by more than 25 percent, pursuant to a permit applied for after
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July 1, 2015, is not eligible for coverage by the corporation if
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the structure is seaward of the coastal construction control
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line established pursuant to s. 161.053 or is within the Coastal
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Barrier Resources System as designated by 16 U.S.C. ss. 3501
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3510.
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6. With respect to wind-only coverage for commercial lines
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residential condominiums, effective July 1, 2014, a condominium
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shall be deemed ineligible for coverage if 50 percent or more of
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the units are rented more than eight times in a calendar year
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for a rental agreement period of less than 30 days.
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(n)1. Rates for coverage provided by the corporation must
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be actuarially sound pursuant to s. 627.062 and not competitive
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with approved rates charged in the admitted voluntary market so
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that the corporation functions as a residual market mechanism to
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provide insurance only when insurance cannot be procured in the
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voluntary market, except as otherwise provided in this
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paragraph. The office shall provide the corporation such
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information as would be necessary to determine whether rates are
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competitive. The corporation shall file its recommended rates
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with the office at least annually. The corporation shall provide
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any additional information regarding the rates which the office
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requires. The office shall consider the recommendations of the
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board and issue a final order establishing the rates for the
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corporation within 45 days after the recommended rates are
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filed. The corporation may not pursue an administrative
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challenge or judicial review of the final order of the office.
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2. In addition to the rates otherwise determined pursuant
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to this paragraph, the corporation shall impose and collect an
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amount equal to the premium tax provided in s. 624.509 to
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augment the financial resources of the corporation.
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3. After the public hurricane loss-projection model under
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s. 627.06281 has been found to be accurate and reliable by the
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Florida Commission on Hurricane Loss Projection Methodology, the
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model shall be considered when establishing the windstorm
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portion of the corporation’s rates. The corporation may use the
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public model results in combination with the results of private
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models to calculate rates for the windstorm portion of the
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corporation’s rates. This subparagraph does not require or allow
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the corporation to adopt rates lower than the rates otherwise
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required or allowed by this paragraph.
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4. The corporation must make a recommended actuarially
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sound rate filing for each personal and commercial line of
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business it writes.
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5. Notwithstanding the board’s recommended rates and the
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office’s final order regarding the corporation’s filed rates
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under subparagraph 1., the corporation shall annually implement
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a rate increase which, except for sinkhole coverage, does not
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exceed the following for any single policy issued by the
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corporation, excluding coverage changes and surcharges:
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a. Twelve percent for 2023.
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b. Thirteen percent for 2024.
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c. Fourteen percent for 2025.
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d. Fifteen percent for 2026 and all subsequent years.
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6. In a county in which the office determines there is not
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a reasonable degree of competition, the corporation shall
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annually implement a rate increase that does not exceed 10
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percent for any single policy issued by the corporation.
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7. 6. The corporation may also implement an increase to
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reflect the effect on the corporation of the cash buildup factor
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pursuant to s. 215.555(5)(b).
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8. 7. The corporation’s implementation of rates as
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prescribed in subparagraphs 5. and 9. 8. shall cease for any
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line of business written by the corporation upon the
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corporation’s implementation of actuarially sound rates.
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Thereafter, the corporation shall annually make a recommended
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actuarially sound rate filing that is not competitive with
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approved rates in the admitted voluntary market for each
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commercial and personal line of business the corporation writes.
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9. 8. New or renewal personal lines policies that do not
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cover a primary residence are not subject to the rate increase
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limitations in subparagraph 5., but may not be charged more than
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50 percent above, nor less than, the prior year’s established
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rate for the corporation.
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10. 9. As used in this paragraph, the term “primary
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residence” means the dwelling that is the policyholder’s primary
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home or is a rental property that is the primary home of the
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tenant, and which the policyholder or tenant occupies for more
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than 9 months of each year.
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(aa) Except as otherwise provided in this paragraph, the
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corporation shall require the securing and maintaining of flood
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insurance as a condition of coverage of a personal lines
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residential risk. The insured or applicant must execute a form
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approved by the office affirming that flood insurance is not
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provided by the corporation and that if flood insurance is not
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secured by the applicant or insured from an insurer other than
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the corporation and in addition to coverage by the corporation,
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the risk will not be eligible for coverage by the corporation.
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The corporation may deny coverage of a personal lines
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residential risk to an applicant or insured who refuses to
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secure and maintain flood insurance. The requirement to purchase
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flood insurance shall be implemented as follows:
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1. Except as provided in subparagraphs 2. and 3., all
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personal lines residential policyholders must have flood
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coverage in place for policies effective on or after:
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a. January 1, 2024, for a structure that has a dwelling
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replacement cost of $600,000 or more.
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b. January 1, 2025, for a structure that has a dwelling
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replacement cost of $500,000 or more.
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c. January 1, 2026, for a structure that has a dwelling
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replacement cost of $400,000 or more.
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d. January 1, 2027, for all other personal lines
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residential property insured by the corporation.
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2. All personal lines residential policyholders whose
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property insured by the corporation is located within the
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special flood hazard area defined by the Federal Emergency
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Management Agency must have flood coverage in place:
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a. At the time of initial policy issuance for all new
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personal lines residential policies issued by the corporation on
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or after April 1, 2023.
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b. By the time of the policy renewal for all personal lines
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residential policies renewing on or after July 1, 2023.
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3. Policyholders are not required to purchase flood
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insurance as a condition for maintaining the following policies
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issued by the corporation:
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a. Policies that do not provide coverage for the peril of
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wind.
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b. Policies that provide coverage under a condominium unit
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owners form.
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c. Policies that provide coverage in Zone X as designated
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by the Federal Emergency Management Agency or for structures
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that are elevated at least 1 foot above the flood zone’s minimum
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base flood elevation, if the office determines there is not a
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reasonable degree of competition in such zone or for such
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structures.
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The flood insurance required under this paragraph must meet, at
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a minimum, the dwelling coverage available from the National
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Flood Insurance Program or the requirements of s.
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627.715(1)(a)1., 2., and 3.
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Section 2. This act shall take effect July 1, 2026.