Florida lawmakers have introduced legislation that would return state-run Citizens Property Insurance Corporation to its original mandate as an insurer of last resort. Florida Representative Jim Boyd and Florida State Senator Alan Hays have introduced identical bills in the Florida House and Senate. The legislation permits Citizens to increase individual residential policyholders’ rates by up to 25%, excluding coverage changes and surcharges.
The legislation also would further restrict who can purchase insurance from Citizens. Beginning in January of 2012, homes and condominiums with combined dwelling and contents replacement cost of $1 million or more would not be eligible for coverage from Citizens. Citizens’ coverage would be available only to homes with a replacement value of $750,000 or less effective in 2012 and to homes with a replacement costs of $500,000 or less as of 2016.