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, 2017, structures with a dwelling replacement cost of $700,000 or more are ineligible for coverage, but this does not apply in counties where there is insufficient competition. In such counties, personal lines residential structures with a replacement cost of less than $1.5 million will be eligible. Additionally, the bill mandates annual rate increases for policies issued by the corporation, with specific caps on the increases for the years 2023 through 2026, and allows for a 10% increase in counties lacking competition.

Furthermore, the bill introduces a requirement for policyholders to secure flood insurance as a condition of coverage for personal lines residential risks, with specific deadlines based on the dwelling replacement cost. However, certain policies, such as those that do not cover wind damage or are for condominium unit owners, will not require flood insurance. The bill also includes provisions for the corporation to implement rate increases and outlines the conditions under which these rates will be established, ensuring they remain actuarially sound and not competitive with the voluntary market. The act is set to take effect on July 1, 2025.