Florida Senate - 2024                                    SB 1070
       
       
        
       By Senator Garcia
       
       
       
       
       
       36-01600-24                                           20241070__
    1                        A bill to be entitled                      
    2         An act relating to personal lines residential property
    3         insurance; creating s. 627.70122, F.S.; requiring an
    4         insurer, before issuing a personal lines residential
    5         property insurance policy, to offer a policy that
    6         provides a coverage limit on the dwelling equal to the
    7         unpaid principal balance of all mortgage loans on the
    8         risk; requiring an insurer issuing such a policy to
    9         obtain a certain signed statement; specifying the
   10         language for such statement; prohibiting a personal
   11         lines residential property insurer from requiring a
   12         coverage limit that includes the value of the land
   13         upon which the dwelling sits; providing an effective
   14         date.
   15          
   16  Be It Enacted by the Legislature of the State of Florida:
   17  
   18         Section 1. Section 627.70122, Florida Statutes, is created
   19  to read:
   20         627.70122 Coverage limits on personal lines residential
   21  property insurance.—
   22         (1) Before issuing a personal lines residential property
   23  insurance policy, the insurer shall offer a policy that provides
   24  a coverage limit on the dwelling equal to the unpaid principal
   25  balance of all mortgage loans on the risk. Before issuing any
   26  policy that limits coverage on the dwelling equal to the unpaid
   27  principal balance of all mortgage loans on the risk, the insurer
   28  shall obtain a statement signed by all insureds which contains
   29  the following notice in boldfaced type no smaller than 18 point:
   30  “YOU ARE ELECTING TO PURCHASE COVERAGE AT A LIMIT THAT IS EQUAL
   31  TO ONLY THE UNPAID PRINCIPAL BALANCE OF THE MORTGAGE LOANS ON
   32  YOUR HOME. ACCORDINGLY, IN THE EVENT OF THE TOTAL LOSS OF YOUR
   33  HOME OR A LOSS FOR WHICH THE COST TO REPAIR YOUR HOME EXCEEDS
   34  THE UNPAID BALANCE ON YOUR MORTGAGE LOAN, YOU WILL INCUR
   35  SIGNIFICANT FINANCIAL LOSSES, INCLUDING THE POTENTIAL LOSS OF
   36  SOME YOUR HOME’S EQUITY.”
   37         (2) A personal lines residential property insurer may not,
   38  as a condition of issuing coverage, require a coverage limit on
   39  the dwelling which includes the value of the land upon which the
   40  dwelling sits.
   41         Section 2. This act shall take effect July 1, 2024.