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| 3 | 3 | | HB 809 2024 |
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| 7 | 7 | | CODING: Words stricken are deletions; words underlined are additions. |
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| 8 | 8 | | hb0809-00 |
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| 9 | 9 | | Page 1 of 2 |
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| 10 | 10 | | 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 |
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| 13 | 13 | | |
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| 14 | 14 | | A bill to be entitled 1 |
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| 15 | 15 | | An act relating to personal lines residential property 2 |
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| 16 | 16 | | insurance; creating s. 627.70122, F.S.; requiring an 3 |
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| 17 | 17 | | insurer, before issuing a personal lines residential 4 |
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| 18 | 18 | | property insurance policy, to offer a policy that 5 |
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| 19 | 19 | | provides a coverage limit on the dwelling equal to the 6 |
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| 20 | 20 | | unpaid principal balance of all mortgage loans on the 7 |
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| 21 | 21 | | risk; requiring an insurer issuing such a policy to 8 |
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| 22 | 22 | | obtain a certain signed statement; specifying the 9 |
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| 23 | 23 | | language for such statement; prohibiting a personal 10 |
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| 24 | 24 | | lines residential property insurer from requiring a 11 |
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| 25 | 25 | | coverage limit that includes the value of the land 12 |
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| 26 | 26 | | upon which the dwelling sits; providing an effective 13 |
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| 27 | 27 | | date. 14 |
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| 28 | 28 | | 15 |
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| 29 | 29 | | Be It Enacted by the Legislatu re of the State of Florida: 16 |
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| 30 | 30 | | 17 |
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| 31 | 31 | | Section 1. Section 627.70122, Florida Statutes, is created 18 |
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| 32 | 32 | | to read: 19 |
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| 33 | 33 | | 627.70122 Coverage limits on personal lines residential 20 |
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| 34 | 34 | | property insurance.— 21 |
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| 35 | 35 | | (1) Before issuing a personal lines residential property 22 |
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| 36 | 36 | | insurance policy, the insurer shall offer a policy that provides 23 |
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| 37 | 37 | | a coverage limit on the dwelling equal to the unpaid principal 24 |
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| 38 | 38 | | balance of all mortgage loans on the risk. Before issuing any 25 |
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| 39 | 39 | | |
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| 40 | 40 | | HB 809 2024 |
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| 41 | 41 | | |
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| 42 | 42 | | |
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| 43 | 43 | | |
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| 44 | 44 | | CODING: Words stricken are deletions; words underlined are additions. |
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| 45 | 45 | | hb0809-00 |
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| 46 | 46 | | Page 2 of 2 |
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| 47 | 47 | | 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 |
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| 50 | 50 | | |
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| 51 | 51 | | policy that limits coverage on the dwelling equal to the unpaid 26 |
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| 52 | 52 | | principal balance of all mortgage loans on the risk, the insurer 27 |
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| 53 | 53 | | shall obtain a statement signed by all insureds which contains 28 |
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| 54 | 54 | | the following notice in boldfaced type no smaller than 18 point: 29 |
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| 55 | 55 | | "YOU ARE ELECTING TO PURCHASE COVERAGE AT A LIMIT THAT IS EQUAL 30 |
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| 56 | 56 | | TO ONLY THE UNPAID PRINCIPAL BALANCE OF THE MORTGAGE LOANS ON 31 |
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| 57 | 57 | | YOUR HOME. ACCORDINGLY, IN THE EVENT OF THE TOTAL LOSS OF YOUR 32 |
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| 58 | 58 | | HOME OR A LOSS FOR WHICH THE COST TO REPAIR YOUR HOME EXCEEDS 33 |
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| 59 | 59 | | THE UNPAID BALANCE ON YOUR MORTGAGE LOAN, YOU WILL INCUR 34 |
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| 60 | 60 | | SIGNIFICANT FINANCIAL LOSSES, INCLUDING THE POTENTIAL LOSS OF 35 |
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| 61 | 61 | | SOME OF YOUR HOME'S EQUITY." 36 |
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| 62 | 62 | | (2) A personal lines residential property insurer may not, 37 |
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| 63 | 63 | | as a condition of issuing coverage, require a coverage limit on 38 |
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| 64 | 64 | | the dwelling which includes the value of the land upon which the 39 |
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| 65 | 65 | | dwelling sits. 40 |
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| 66 | 66 | | Section 2. This act shall take effect July 1, 2024. 41 |
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