David Dunham Insurance – Florida HB 1611 & Rewriting Section 129

Over the next several days I’ll provide updates on how the rewriting of Section 129 will impact home insurance premiums. In part 1, I’ll look at the impact changing section 627.351(6)(n)(8) will have on Citizens rates. HB 1611 has passed the house and senate and sent to the Governor for signature. Once signed it will become law.

Given where we live, David Dunham Insurance has a lot of folks who own or are purchasing secondary or seasonal homes. These homes are frequently classified as non-primary homes. To be considered primary, one of the following documents would have to be provided:

·        Proof of a homestead exemption

·        Copy of a Florida voter registration card

·        Copy of a Florida driver’s license or ID

·        Copy of a Florida vehicle registration

Until 2021, Citizens was limited to no more than a 10% rate increase per year on residential home policies regardless if they were primary or non-primary. But a change in legislation allowed Citizens to increase that cap to 15% over time. The “glide path” as it’s referred to, increased the cap to 11% in 2021, 12% in 2022, 13% in 2023, 14% in 2024 and finally 15% in 2025. Until now, this cap still applied to all home insurance policies provided by Citizens regardless of primary or non-primary status.

With the change to section 627.351(6)(n)(8), the glide path no longer applies to non-primary homes. Citizens is now permitted to increase rates on non-primary homes by up to 50% annually until the rates charged are both actuarially sound and non-competitive. Non-Competitive is defined as being no more than 5% below the admitted market average premium for a similar risk. It also makes it clear this applies to both new and renewal business.

So, what’s considered a home? A home is defined as being a single family, condominium, townhome, mobile home, or multi-family with less than 4 units. This will impact folks purchasing a secondary or seasonal home even if they intend for that home to be a full or part-time rental.

Let David Dunham Insurance help you navigate this new change. Give us a call at 561-694-0185 or submit a request form by clicking HERE.

Need An Immediate Quote?

If you need immediate service or quotes, please call us directly.

Ready to get started?

Start Your Quotes Today

Enter some basic information below to get the process started.

Service Options

Call Email Claims Payments