A Florida Senate Republican has introduced a bill that could broaden the eligibility requirements for homeowners seeking coverage from the state’s Citizens Property Insurance Corp. The proposal, filed by Senator Ana Maria Rodriguez, a Republican representing Monroe County and parts of Miami-Dade County, aims to address the evolving real estate landscape in these areas.
Under existing law, Citizens is generally prohibited from issuing policies for homes with a “dwelling replacement cost” of $700,000 or greater. However, Miami-Dade and Monroe counties currently have a higher threshold of $1 million. Rodriguez’s bill would raise the limit in these two counties to $1.5 million.
This isn’t the first time legislators have considered such adjustments. Past discussions have highlighted the escalating home values and the challenges homeowners face in securing insurance coverage within Miami-Dade and Monroe counties. These areas were given the higher cap due to regulatory findings that they lack a sufficient “reasonable degree of competition” within the insurance market.
The proposal arrives as state officials are actively working to decrease the overall number of policies handled by Citizens. In recent years, Citizens has become the largest insurance provider in Florida.
Dwelling replacement costs serve as an estimate of the expenses needed to rebuild a home. It’s crucial to distinguish these costs from the market value of a property, as the latter encompasses the value of the land, which is not included in replacement cost calculations.
