The bill amends section 627.351 of the Florida Statutes to revise the eligibility criteria for residential structures seeking coverage from the Citizens Property Insurance Corporation. Notably, it raises the threshold for coverage eligibility in certain counties from a dwelling replacement cost of $1 million to $1.5 million, provided there is a lack of competition in the insurance market. Additionally, the bill mandates annual rate increases for policies issued by the corporation, with specific caps set for the years 2023 through 2026. In counties with insufficient competition, the rate increase is limited to 10 percent. The bill also stipulates that the corporation must implement a requirement for policyholders to secure flood insurance, with certain exceptions for specific types of policies.

Furthermore, the bill introduces new provisions regarding flood insurance requirements, specifying that personal lines residential policyholders must have flood coverage in place by certain deadlines based on the dwelling replacement cost. However, it exempts certain policies from the flood insurance requirement, including those that do not cover wind damage and those for condominium unit owners. The effective date for the bill is set for July 1, 2025.