Florida House Insurance Subcommittee Approves Coverage Prohibition Repeal of Citizens Property Insurance for Certain Structures
Mar 10, 2015
HB 715, a bill that would remove a provision of law prohibiting certain improvements to major structures from being eligible for Citizens Property Insurance Corporation (“Citizens”) coverage was the focus of the Florida House of Representatives’ Insurance and Banking Subcommittee (“Subcommittee”) meeting this morning, March 10, 2015.
In her presentation to the Subcommittee, HB 715 sponsor State Representative Holly Raschein explained that the bill would remove the prohibition against Citizens coverage for any major structure that is substantially improved on or after July 1, 2015 and located seaward of the Coastal Construction Control Line or within the Coastal Barrier Resources System.
Additionally, under the provisions of the bill, a similarly located major structure that was built before July 1, 2015 and subsequently remodeled or repaired to a size less than 125 percent of its original square footage would be eligible for Citizens coverage.
Representative Raschein offered an amendment that corrects a drafting error in HB 715 and clarifies that the threshold on existing structures is 25 percent of the total square footage of the finished area. After voting to adopt the amendment to HB 715, the Subcommittee passed the bill favorably.
through the Regulatory Affairs Committee before proceeding to a floor vote by the full House.
To view a complete analysis of HB 715, click here.
SB 842, a similar bill on today’s Senate Committee on Banking and Insurance agenda, is sponsored by Senator Lizbeth Benacquisto.
The Subcommittee also heard HB 987 by State Representative Scott Plakon, which makes changes to the Florida Department of Financial Services’ (“DFS'”) organizational structure. The bill would eliminate and re-organizes some of the agency’s components, and would afford Florida’s Chief Financial Officer the flexibility to establish new DFS divisions, bureaus and offices. The bill was also approved.
The Subcommittee also approved HB 927 by State Representative Bill Hager, which would change the administration process of title insurance assessment recovery surcharges.
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