THE BILL ITSELF
HB 775
Homeowner's Insurance Premium Reductions
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A bill to be entitled
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An act relating to homeowner's insurance premium
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reductions; creating s. 627.70171, F.S.; providing a
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short title; providing legislative intent; providing
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definitions; requiring premium reductions to be
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applied to homeowners who maintain certain claim-free
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periods; providing requirements for such premium
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reductions; providing that homeowners who file major
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storm claims remain eligible for premium reductions;
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requiring the Office of Insurance Regulation to
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determine premium reduction schedules for such
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homeowners; prohibiting homeowners' insurers from
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treating major storm claims as certain other claims;
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requiring premium reductions for certain mitigation
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upgrades; providing duties and publication
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requirements for the office; providing reporting
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requirements for insurers; providing rulemaking
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authority; 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. Section 627.70171, Florida Statutes, is created
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to read:
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627.70171 Homeowner's insurance premium reductions based
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on claim-free periods and mitigation upgrades.—
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(1) SHORT TITLE.—This section may be cited as the
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"Homeowner Savings and Premium Reduction Act."
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(2) LEGISLATIVE INTENT.—It is the intent of the
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Legislature that:
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(a) Responsible homeowners receive lower property
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insurance premiums.
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(b) Homeowners who maintain their property in good
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condition and avoid making insurance claims be rewarded with
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predictable, automatic savings.
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(c) Homeowners who file legitimate claims related to major
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storms not be penalized.
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(d) Homeowners be incentivized to protect their homes by
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implementing housing hardening, mitigation upgrades, and
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infrastructure improvements.
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(e) This legislation improve insurers' transparency and
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accountability in how premium reductions are applied.
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(3) DEFINITIONS.—As used in this section, the term:
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(a) "Claim-free period" means a continuous period with no
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filed or paid claims excluding major storm claims.
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(b) "Major storm claim" means a claim resulting solely
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from a named storm or hurricane as designated by the National
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Hurricane Center.
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(c) "Mitigation upgrade" means a property improvement,
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such as roof reinforcement, shutters, floor barriers, tie-downs,
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impact-resistant windows, and reinforced doors, which are
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approved by the office to reduce the property risk to hazard
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events.
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(4) MANDATORY PREMIUM REDUCTIONS FOR CLAIM-FREE PERIODS.—
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(a) A property insurer issuing, delivering, issuing for
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delivery, or renewing a homeowner's insurance policy in this
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state on or after July 1, 2026, shall automatically apply
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premium reductions for policyholders who maintain a 36-month
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claim-free period.
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(b) The premium reductions required under paragraph (a)
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must be:
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1. Statewide, uniform, and actuarially sound.
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2. Published annually by the office based on actuarial
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review.
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3. Applied at policy renewals or, if the 36-month claim-
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free period is reached early, before policy renewals.
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4. Automatic. An insurer may not require homeowners to
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request the reduction.
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(c) A homeowner who files only major storm claims remains
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eligible for premium reductions. The office shall determine the
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premium reduction schedule for such homeowners, except that a
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homeowner with one major storm claim in a 36-month claim-free
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period is entitled to a full premium reduction.
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(d) An insurer may not treat major storm claims in the
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same way as preventable or maintenance-related claims.
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(5) MITIGATION UPGRADES.—
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(a) A property insurer issuing, delivering, issuing for
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delivery, or renewing a homeowner's insurance policy in this
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state on or after July 1, 2026, shall give premium reductions to
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homeowners who complete office-approved mitigation upgrades. The
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premium reductions for mitigation upgrades are separate from the
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premium reductions that are based on claim-free periods.
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(b) The office shall create a list of eligible mitigation
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upgrades, set premium reduction percentages based on mitigation
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upgrades, and maintain a database of approved contractors and
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products. Such list, percentages, and database shall be
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accessible on the office's website.
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(6) ANNUAL REPORTING REQUIREMENTS.—
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(a) By January 1 of every year, each homeowner's insurer
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shall submit a report on the premium reductions under this
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section to the office, the President and Minority Leader of the
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Senate, the Speaker and Minority Leader of the House of
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Representatives, and the chairs of the legislative committees
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with jurisdiction over matters of insurance.
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1. The report must include:
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a. The number of policyholders eligible for premium
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reductions under this section.
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b. The number of policyholders receiving premium
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reductions under this section.
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c. The total dollar value of premium reductions provided.
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d. The number of major storm claims and the number of non-
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major storm claims.
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2. The data submitted under subparagraph 1. must be broken
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down by county and coverage type.
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(b) The office shall publish, for transparency and public
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trust, an annual statewide summary report on the data gathered
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from the reports submitted by homeowner's insurers under
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paragraph (a).
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(7) RULEMAKING.—The office may adopt rules to enforce:
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(a) Premium reduction schedules.
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(b) Mitigation upgrade standards.
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(c) Insurer reporting requirements.
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Section 2. This act shall take effect July 1, 2026.