Annual Rate Increases for Coverages by Citizens Property Insurance Corporation:
HB 705 would amend Florida’s Citizens Property Insurance Corporation statute to change how annual rate-increase limits apply to certain policies. Under current law, Citizens must generally keep annual increases within specified caps, with the bill preserving those caps for existing policies but carving out an exception for new policies issued after June 1, 2025, and for any later renewals of those policies. The bill also keeps the existing framework that requires Citizens to file actuarially sound rates, use approved hurricane-loss modeling, and apply different rules for policies that do not cover a primary residence.
The measure would continue Citizens’ rate-setting structure but narrow the reach of the statutory annual increase limits by exempting newly issued policies after the specified date. It would also maintain the separate treatment for non-primary-residence personal lines policies, which are already subject to a higher ceiling than primary residences, and it preserves the ability to reflect the cash buildup factor in rates. The bill would take effect July 1, 2025.
HB 705 would amend s. 627.351, Florida Statutes, governing Citizens Property Insurance Corporation’s rates. Its main legal effect is to exclude new policies issued after June 1, 2025, and their subsequent renewals, from the statute’s annual rate-increase caps, while leaving the caps in place for other policies and retaining existing actuarial and modeling requirements. The bill would affect Citizens policyholders, especially new customers and those renewing policies issued after the cutoff date, by allowing potentially larger premium changes than under current law.
There is little direct recorded debate in the provided materials, and no committee transcript or vote history is available. The bill’s introduction suggests an effort to give Citizens more pricing flexibility for newer policies, but its failure to advance and final status—died in the Insurance & Banking Subcommittee—indicate that it did not secure enough support to move forward. Overall sentiment appears limited and inconclusive from the available record, with the outcome suggesting at least some legislative resistance or lack of consensus.
The central point of contention is the bill’s relaxation of annual rate-increase limits for new Citizens policies issued after June 1, 2025, and for their renewals. Supporters would likely view this as a way to better align premiums with actuarial risk and reduce cross-subsidization, while opponents would likely worry about higher costs for homeowners and renters newly entering the Citizens market. The distinction between primary residences and non-primary residences, and the continued use of rate caps for existing policies, also reflects a policy balance between affordability and actuarial soundness that may have been disputed.