Sarasota Republican Sen. Joe Gruters has filed legislation that would make it harder for some property owners to stay on the state-sponsored Citizens Property Insurance Corp. when private insurers are willing to offer coverage, even if that coverage costs more.
State leaders have spent years trying to shrink Citizens, Florida’s insurer of last resort, arguing that its rapid growth exposes taxpayers to financial risk after major storms. Gruters’ bill (SB 1028) would steer policyholders into the private market.
The measure would direct Citizens to establish a personal lines clearinghouse and a new commercial lines clearinghouse by Jan. 1, 2027. The clearinghouses would steer eligible policyholders out of Citizens and into the private insurance market when comparable coverage is available.
The bill would require Citizens to charge certain commercial policyholders the higher of two amounts: its own calculated premium or a competing offer made through the state’s surplus lines clearinghouse. That requirement would also apply to renewals unless a new offer is made, in which case the premium would again be set at the higher amount.
The bill, filed Tuesday, would also require Citizens to set up a process by 2028 to move applicants and existing policyholders who no longer qualify for coverage toward private insurers.
SB 1028 revises eligibility standards for personal and commercial coverage, making applicants ineligible for Citizens if they receive a comparable offer through the clearinghouse at or below statutory price thresholds. If the clearinghouse offer exceeds those thresholds, policyholders could choose to remain with Citizens or accept private coverage.
The bill would also create a narrower rule for some commercial policies. Policyholders who receive offers from surplus lines insurers could remain with Citizens, but only if they agree to pay the higher premium when the private coverage is within 20% of Citizens’ rate.
If approved, the bill would take effect immediately upon becoming law.
