On Monday, April 28th, the Florida State Senate passed a bill relating to Citizens Insurance. House Bill 1089 which is now awaiting a signature from Governor Rick Scott.
HB 1089 only contains a couple of provisions, but one of the issues has been quite bothersome to agents and consumers over the last couple of years. The bill codifies eligibility standards for condo associations based on the percentage of short term rentals. The language of the bill specifically says:
With respect to wind-only coverage for commercial lines residential condominiums, effective July 1, 2014, a condominium shall be deemed ineligible for coverage if 50 percent or more of the units are rented more than eight times in a calendar year for a rental agreement period of less than 30 days.
This new eligibility standard in Florida statutes is better than previous Citizens’ interpretations based on CAT Fund rules. While some may not believe it’s perfect, it is certainly an improvement. The bill’s effective date is July, 1 2014.