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. It establishes that, effective January 1, 2024, personal lines residential structures with a dwelling replacement cost of less than $1.5 million will be eligible for coverage in counties where there is not a reasonable degree of competition. Additionally, the bill mandates annual rate increases for policies issued by the corporation, capping increases at 12% for 2023, 13% for 2024, 14% for 2025, and 15% for 2026 and beyond, with a lower cap of 10% in counties lacking competition. The bill also introduces a requirement for policyholders to secure flood insurance, with specific deadlines based on the dwelling replacement cost, while exempting certain policies from this requirement.

Furthermore, the bill clarifies that the corporation must implement a flood insurance requirement for personal lines residential risks, with specific timelines for compliance based on the property's value. It allows for exceptions to the flood insurance requirement for certain types of policies, including those that do not cover wind damage and those for condominium unit owners. The bill aims to ensure that the Citizens Property Insurance Corporation continues to provide affordable insurance options while maintaining financial stability and compliance with federal regulations. The act is set to take effect on July 1, 2025.