Florida Senate - 2026                                    SB 1476
       
       
        
       By Senator Bernard
       
       
       
       
       
       24-01295-26                                           20261476__
    1                        A bill to be entitled                      
    2         An act relating to homeowners’ insurance premium
    3         discounts; creating s. 626.0656, F.S.; defining terms;
    4         requiring residential property insurers to provide
    5         specified premium reductions for claim-free periods
    6         and mitigation improvements; specifying the conditions
    7         under which such reductions apply; prohibiting the use
    8         of storm-related claims to deny eligibility for a
    9         premium reduction; requiring the Office of Insurance
   10         Regulation to adopt rules relating to mitigation
   11         upgrades; requiring residential property insurers to
   12         submit, by a specified date, a specified report to the
   13         office; requiring the office to compile certain
   14         reports and publish an annual report on its website;
   15         amending s. 627.4133, F.S.; prohibiting certain claims
   16         that are the result of an act of God from being used
   17         as a cause for premium discount ineligibility;
   18         providing construction; providing an effective date.
   19          
   20  Be It Enacted by the Legislature of the State of Florida:
   21  
   22         Section 1. Section 626.0656, Florida Statutes, is created
   23  to read:
   24         626.0656 Homeowners’ insurance premium discounts and rating
   25  protections.—
   26         (1)As used in this section, the term:
   27         (a)“Claim-free period” means a continuous period during
   28  which a residential property insurance policy remains in force
   29  and the policyholder submits no claim other than a storm-related
   30  claim.
   31         (b)“Mitigation improvement” means any structural or
   32  nonstructural feature, installation, or upgrade made to a
   33  residential structure for the purpose of reducing windstorm or
   34  hurricane damage risk, including, but not limited to, roof
   35  reinforcement, opening protection, flood barriers, and tie
   36  downs.
   37         (c)“Residential property insurer” means an insurer
   38  authorized to issue homeowners policies, dwelling fire policies,
   39  or condominium unit owners policies in this state.
   40         (d)“Storm-related claim” means a claim arising directly
   41  from a hurricane, tropical storm, tornado, or other weather
   42  event declared by the National Weather Service.
   43         (2)(a)A residential property insurer shall provide a
   44  premium reduction to a policyholder who completes a claim-free
   45  period of 3 years. The premium reduction may not be less than 5
   46  percent of the annual premium and must increase by an additional
   47  5 percent for each consecutive claim-free year thereafter.
   48         (b)The premium reduction required under this subsection
   49  must be applied at the next renewal following completion of the
   50  claim-free period.
   51         (c)A storm-related claim may not be used to deny, reduce,
   52  or disqualify a premium reduction provided under this
   53  subsection.
   54         (3)(a)A residential property insurer shall provide a
   55  premium reduction to a policyholder who completes a mitigation
   56  improvement.
   57         (b)The premium reduction required under this subsection
   58  must be applied at the next renewal following the completion of
   59  the mitigation improvement and must be in addition to any claim
   60  free premium reduction.
   61         (c)The office shall adopt rules to implement this
   62  subsection, including rules that:
   63         1.Establish a list of eligible mitigation upgrades; and
   64         2.Maintain a publicly accessible database of approved
   65  contractors and products related to mitigation improvements.
   66         (4)(a) By March 1 of each year, each residential property
   67  insurer shall submit to the office a report detailing:
   68         1.The number of policies receiving claim-free premium
   69  reductions under subsection (2);
   70         2.The number of policies receiving mitigation improvement
   71  premium reductions under subsection (3);
   72         3.The total amount of premium savings provided to
   73  policyholders under subsections (2) and (3); and
   74         4.The geographic distribution of premium reductions, by
   75  county.
   76         (b) The office shall compile the reports received under
   77  paragraph (a) and publish an annual report on its website.
   78         Section 2. Subsection (3) of section 627.4133, Florida
   79  Statutes, is amended to read:
   80         627.4133 Notice of cancellation, nonrenewal, or renewal
   81  premium.—
   82         (3) Claims on property insurance policies that are the
   83  result of an act of God may not be used as a cause for
   84  cancellation, or nonrenewal, or premium discount ineligibility,
   85  unless the insurer can demonstrate, by claims frequency or
   86  otherwise, that the insured has failed to take action reasonably
   87  necessary as requested by the insurer to prevent recurrence of
   88  damage to the insured property. This subsection does not preempt
   89  or prohibit a reduction in the amount of a premium discount, as
   90  approved by the office, for a claim that is the result of an act
   91  of God and that occurred within 24 months before the discount is
   92  applied.
   93         Section 3. This act shall take effect July 1, 2026.