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, unless in counties where competition is deemed insufficient. In such counties, the threshold for eligibility is raised to $1.5 million for personal lines residential structures. Additionally, the bill mandates annual rate increases for policies issued by the corporation, with specific caps set for the years 2023 through 2026, and introduces a provision for counties lacking competition, allowing a maximum increase of 10 percent.

Furthermore, the bill outlines new requirements for flood insurance, stating that policyholders must secure and maintain flood coverage as a condition for personal lines residential risk coverage, with specific deadlines based on the dwelling replacement cost. However, certain policies, such as those not covering wind or those in designated low-risk flood zones, are exempt from this requirement. The bill aims to ensure that the Citizens Property Insurance Corporation can provide affordable insurance while maintaining financial stability and compliance with federal regulations. The act is set to take effect on July 1, 2026.