CS/HB 625 2024
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
A bill to be entitled 1
An act relating to property insurance coverage; 2
amending s. 627.351, F.S.; providing that rates 3
charged for certain commercial lines residential 4
condominium wind-only policies by Citizens Property 5
Insurance Corporation are not subject to specified 6
rate increases; amending s. 627.7011, F.S.; requiring 7
authorized inspectors to use a specified inspection 8
form for inspections of residential structure roofs; 9
authorizing such inspectors to provide appendices to 10
the inspection forms for a specified purpose; creating 11
s. 627.70143, F.S.; providing a definition; requiring 12
authorized inspectors to use a specified inspection 13
form for inspections of commercial structure roo fs; 14
authorizing such inspectors to provide appendices to 15
the inspection forms for a specified purpose; amending 16
s. 627.714, F.S.; increasing property loss assessment 17
coverages under condominium unit owners' residential 18
property policies; providing an effec tive date. 19
20
Be It Enacted by the Legislature of the State of Florida: 21
22
Section 1. Paragraph (a) of subsection (6) of section 23
627.351, Florida Statutes, is amended, and paragraph (n) of 24
subsection (6) of that section is republished, to read: 25
CS/HB 625 2024
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
627.351 Insurance risk apportionment plans. — 26
(6) CITIZENS PROPERTY INSURANCE CORPORATION. — 27
(a) The public purpose of this subsection is to ensure 28
that there is an orderly market for property insurance for 29
residents and businesses of this state. 30
1. The Legislature finds that private insurers are 31
unwilling or unable to provide affordable property insurance 32
coverage in this state to the extent sought and needed. The 33
absence of affordable property insurance threatens the public 34
health, safety, and welfare and likewise threatens the economic 35
health of the state. The state therefore has a compelling public 36
interest and a public purpose to assist in assuring that 37
property in the state is insured and that it is insured at 38
affordable rates so as to facilitate the re mediation, 39
reconstruction, and replacement of damaged or destroyed property 40
in order to reduce or avoid the negative effects otherwise 41
resulting to the public health, safety, and welfare, to the 42
economy of the state, and to the revenues of the state and lo cal 43
governments which are needed to provide for the public welfare. 44
It is necessary, therefore, to provide affordable property 45
insurance to applicants who are in good faith entitled to 46
procure insurance through the voluntary market but are unable to 47
do so. The Legislature intends, therefore, that affordable 48
property insurance be provided and that it continue to be 49
provided, as long as necessary, through Citizens Property 50
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Insurance Corporation, a government entity that is an integral 51
part of the state, and t hat is not a private insurance company. 52
To that end, the corporation shall strive to increase the 53
availability of affordable property insurance in this state, 54
while achieving efficiencies and economies, and while providing 55
service to policyholders, applica nts, and agents which is no 56
less than the quality generally provided in the voluntary 57
market, for the achievement of the foregoing public purposes. 58
Because it is essential for this government entity to have the 59
maximum financial resources to pay claims fol lowing a 60
catastrophic hurricane, it is the intent of the Legislature that 61
the corporation continue to be an integral part of the state and 62
that the income of the corporation be exempt from federal income 63
taxation and that interest on the debt obligations i ssued by the 64
corporation be exempt from federal income taxation. 65
2. The Residential Property and Casualty Joint 66
Underwriting Association originally created by this statute 67
shall be known as the Citizens Property Insurance Corporation. 68
The corporation shall provide insurance for residential and 69
commercial property, for applicants who are entitled, but, in 70
good faith, are unable to procure insurance through the 71
voluntary market. The corporation shall operate pursuant to a 72
plan of operation approved by order of the Financial Services 73
Commission. The plan is subject to continuous review by the 74
commission. The commission may, by order, withdraw approval of 75
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
all or part of a plan if the commission determines that 76
conditions have changed since approval was granted and that the 77
purposes of the plan require changes in the plan. For the 78
purposes of this subsection, residential coverage includes both 79
personal lines residential coverage, which consists of the type 80
of coverage provided by homeowner, mobile home owner, dw elling, 81
tenant, condominium unit owner, and similar policies; and 82
commercial lines residential coverage, which consists of the 83
type of coverage provided by condominium association, apartment 84
building, and similar policies. 85
3. With respect to coverage for personal lines residential 86
structures: 87
a. Effective January 1, 2014, a structure that has a 88
dwelling replacement cost of $1 million or more, or a single 89
condominium unit that has a combined dwelling and contents 90
replacement cost of $1 million or more, i s not eligible for 91
coverage by the corporation. Such dwellings insured by the 92
corporation on December 31, 2013, may continue to be covered by 93
the corporation until the end of the policy term. The office 94
shall approve the method used by the corporation for valuing the 95
dwelling replacement cost for the purposes of this subparagraph. 96
If a policyholder is insured by the corporation before being 97
determined to be ineligible pursuant to this subparagraph and 98
such policyholder files a lawsuit challenging the determ ination, 99
the policyholder may remain insured by the corporation until the 100
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
conclusion of the litigation. 101
b. Effective January 1, 2015, a structure that has a 102
dwelling replacement cost of $900,000 or more, or a single 103
condominium unit that has a combined d welling and contents 104
replacement cost of $900,000 or more, is not eligible for 105
coverage by the corporation. Such dwellings insured by the 106
corporation on December 31, 2014, may continue to be covered by 107
the corporation only until the end of the policy term. 108
c. Effective January 1, 2016, a structure that has a 109
dwelling replacement cost of $800,000 or more, or a single 110
condominium unit that has a combined dwelling and contents 111
replacement cost of $800,000 or more, is not eligible for 112
coverage by the corporat ion. Such dwellings insured by the 113
corporation on December 31, 2015, may continue to be covered by 114
the corporation until the end of the policy term. 115
d. Effective January 1, 2017, a structure that has a 116
dwelling replacement cost of $700,000 or more, or a single 117
condominium unit that has a combined dwelling and contents 118
replacement cost of $700,000 or more, is not eligible for 119
coverage by the corporation. Such dwellings insured by the 120
corporation on December 31, 2016, may continue to be covered by 121
the corporation until the end of the policy term. 122
123
The requirements of sub -subparagraphs b.-d. do not apply in 124
counties where the office determines there is not a reasonable 125
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
degree of competition. In such counties a personal lines 126
residential structure that has a d welling replacement cost of 127
less than $1 million, or a single condominium unit that has a 128
combined dwelling and contents replacement cost of less than $1 129
million, is eligible for coverage by the corporation. 130
4. It is the intent of the Legislature that policyholders, 131
applicants, and agents of the corporation receive service and 132
treatment of the highest possible level but never less than that 133
generally provided in the voluntary market. It is also intended 134
that the corporation be held to service standards no less than 135
those applied to insurers in the voluntary market by the office 136
with respect to responsiveness, timeliness, customer courtesy, 137
and overall dealings with policyholders, applicants, or agents 138
of the corporation. 139
5.a. Effective January 1, 2009, a personal lines 140
residential structure that is located in the "wind -borne debris 141
region," as defined in s. 1609.2, International Building Code 142
(2006), and that has an insured value on the structure of 143
$750,000 or more is not eligible for coverage by the c orporation 144
unless the structure has opening protections as required under 145
the Florida Building Code for a newly constructed residential 146
structure in that area. A residential structure is deemed to 147
comply with this sub -subparagraph if it has shutters or ope ning 148
protections on all openings and if such opening protections 149
complied with the Florida Building Code at the time they were 150
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
installed. 151
b. Any major structure, as defined in s. 161.54(6)(a), 152
that is newly constructed, or rebuilt, repaired, restored, or 153
remodeled to increase the total square footage of finished area 154
by more than 25 percent, pursuant to a permit applied for after 155
July 1, 2015, is not eligible for coverage by the corporation if 156
the structure is seaward of the coastal construction control 157
line established pursuant to s. 161.053 or is within the Coastal 158
Barrier Resources System as designated by 16 U.S.C. ss. 3501 -159
3510. 160
6. Beginning with the implementation of the corporation's 161
next annual rate change on or after August 1, 2024, if the 162
corporation writes a commercial lines residential condominium 163
wind-only policy for a condominium in which 50 percent or more 164
of the units are rented more than eight times in a calendar year 165
for a rental agreement period of less than 30 days, the rate 166
charged for such policy is not subject to subparagraph (n)5 With 167
respect to wind-only coverage for commercial lines residential 168
condominiums, effective July 1, 2014, a condominium shall be 169
deemed ineligible for coverage if 50 percent or more of the 170
units are rented more than eight times in a calendar year for a 171
rental agreement period of less than 30 days . 172
(n)1. Rates for coverage provided by the corporation must 173
be actuarially sound pursuant to s. 627.062 and not competitive 174
with approved rates charged in the admit ted voluntary market so 175
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
that the corporation functions as a residual market mechanism to 176
provide insurance only when insurance cannot be procured in the 177
voluntary market, except as otherwise provided in this 178
paragraph. The office shall provide the corporat ion such 179
information as would be necessary to determine whether rates are 180
competitive. The corporation shall file its recommended rates 181
with the office at least annually. The corporation shall provide 182
any additional information regarding the rates which th e office 183
requires. The office shall consider the recommendations of the 184
board and issue a final order establishing the rates for the 185
corporation within 45 days after the recommended rates are 186
filed. The corporation may not pursue an administrative 187
challenge or judicial review of the final order of the office. 188
2. In addition to the rates otherwise determined pursuant 189
to this paragraph, the corporation shall impose and collect an 190
amount equal to the premium tax provided in s. 624.509 to 191
augment the financia l resources of the corporation. 192
3. After the public hurricane loss -projection model under 193
s. 627.06281 has been found to be accurate and reliable by the 194
Florida Commission on Hurricane Loss Projection Methodology, the 195
model shall be considered when estab lishing the windstorm 196
portion of the corporation's rates. The corporation may use the 197
public model results in combination with the results of private 198
models to calculate rates for the windstorm portion of the 199
corporation's rates. This subparagraph does not require or allow 200
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
the corporation to adopt rates lower than the rates otherwise 201
required or allowed by this paragraph. 202
4. The corporation must make a recommended actuarially 203
sound rate filing for each personal and commercial line of 204
business it writes. 205
5. Notwithstanding the board's recommended rates and the 206
office's final order regarding the corporation's filed rates 207
under subparagraph 1., the corporation shall annually implement 208
a rate increase which, except for sinkhole coverage, does not 209
exceed the following for any single policy issued by the 210
corporation, excluding coverage changes and surcharges: 211
a. Twelve percent for 2023. 212
b. Thirteen percent for 2024. 213
c. Fourteen percent for 2025. 214
d. Fifteen percent for 2026 and all subsequent years. 215
6. The corporation may also implement an increase to 216
reflect the effect on the corporation of the cash buildup factor 217
pursuant to s. 215.555(5)(b). 218
7. The corporation's implementation of rates as prescribed 219
in subparagraphs 5. and 8. shall cease for any li ne of business 220
written by the corporation upon the corporation's implementation 221
of actuarially sound rates. Thereafter, the corporation shall 222
annually make a recommended actuarially sound rate filing that 223
is not competitive with approved rates in the admit ted voluntary 224
market for each commercial and personal line of business the 225
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
corporation writes. 226
8. The following new or renewal personal lines policies 227
written on or after November 1, 2023, are not subject to the 228
rate increase limitations in subparagraph 5., but may not be 229
charged more than 50 percent above, nor less than, the prior 230
year's established rate for the corporation: 231
a. Policies that do not cover a primary residence; 232
b. New policies under which the coverage for the insured 233
risk, before the date of application with the corporation, was 234
last provided by an insurer determined by the office to be 235
unsound or an insurer placed in receivership under chapter 631; 236
or 237
c. Subsequent renewals of those policies, including the 238
new policies in sub-subparagraph b., under which the coverage 239
for the insured risk, before the date of application with the 240
corporation, was last provided by an insurer determined by the 241
office to be unsound or an insurer placed in receivership under 242
chapter 631. 243
9. As used in this paragraph, the term "primary residence" 244
means the dwelling that is the policyholder's primary home or is 245
a rental property that is the primary home of the tenant, and 246
which the policyholder or tenant occupies for more than 9 months 247
of each year. 248
Section 2. Paragraph (c) of subsection (5) of section 249
627.7011, Florida Statutes, is amended to read: 250
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
627.7011 Homeowners' policies; offer of replacement cost 251
coverage and law and ordinance coverage. — 252
(5) 253
(c) For a roof that is at least 15 years old, an in surer 254
must allow a homeowner to have a roof inspection performed by an 255
authorized inspector at the homeowner's expense before requiring 256
the replacement of the roof of a residential structure as a 257
condition of issuing or renewing a homeowner's insurance pol icy. 258
The insurer may not refuse to issue or refuse to renew a 259
homeowner's insurance policy solely because of roof age if an 260
inspection of the roof of the residential structure performed by 261
an authorized inspector indicates that the roof has 5 years or 262
more of useful life remaining. An authorized inspector must use 263
the personal Roof Condition Inspection Form issued by Citizens 264
Property Insurance Corporation and approved by the office. An 265
authorized inspector may provide an appendix to this form which 266
includes pictures or other documentation to demonstrate the 267
remaining useful life of the roof. 268
Section 3. Section 627.70143, Florida Statutes, is created 269
to read: 270
627.70143 Commercial roof inspections. — 271
(1) As used in this section, the term "authorized 272
inspector" has the same meaning as in s. 627.7011(5)(a). 273
(2) An authorized inspector inspecting the roof of a 274
commercial structure must use the commercial Roof Condition 275
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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
Inspection Form issued by Citizens Property Insurance 276
Corporation and approved by the office. An authorized inspector 277
may provide an appendix to this form which includes pictures or 278
other documentation to demonstrate the remaining useful life of 279
the roof. 280
Section 4. Subsection (1) of section 627.714, Florida 281
Statutes, is amended to read : 282
627.714 Residential condominium unit owner coverage; loss 283
assessment coverage required. — 284
(1) For policies issued or renewed on or after July 1, 285
2024 2010, coverage under a unit owner's residential property 286
policy must include at least $5,000 $2,000 in property loss 287
assessment coverage for all assessments made as a result of the 288
same direct loss to the property, regardless of the number of 289
assessments, owned by all members of the association 290
collectively if such loss is of the type of loss covered by the 291
unit owner's residential property insurance policy, to which a 292
deductible of no more than $250 per direct property loss 293
applies. If a deductible was or will be applied to other 294
property loss sustained by the unit owner resulting from the 295
same direct loss to the property, no deductible applies to the 296
loss assessment coverage. 297
Section 5. This act shall take effect July 1, 2024. 298