What SB 1028 changes for some Florida investment properties
The Florida Senate bill summary for CS/CS/SB 1028 says Citizens must establish commercial-lines clearinghouses to help divert certain commercial residential and commercial nonresidential risks toward authorized insurers or, if necessary, approved surplus-lines insurers. The summary says the commercial clearinghouse for surplus lines must be established by January 1, 2027.
The important qualifier is “commercial lines.” The law’s classification and eligibility tests are not a substitute for asking an insurance professional how a particular rental, portfolio, condominium, or commercial residential risk is treated.
Reviewing a Florida rental or portfolio?
Joe Pistone & Team can help you separate insurance questions from the DSCR property and cash-flow review.
Discuss Your Investment PlanFour investor questions to ask now
- How is the property classified for insurance? Ask whether the risk is personal lines or commercial lines and which carrier market is being considered.
- What happens at renewal? The bill summary describes a clearinghouse process for certain commercial applications and renewals. Do not assume a current policy automatically stays in the same market.
- What coverage is comparable? Premium alone is not enough. Compare limits, deductibles, exclusions, flood coverage, wind terms, and lender requirements with a licensed professional.
- How does the insurance quote affect DSCR? Insurance belongs in the property’s recurring expense picture. Re-run the rental economics with the address-specific quote, taxes, HOA dues, and reserves.
Keep the law separate from the DSCR underwriting question
DSCR analysis asks whether the property’s supported rent can cover its debt obligation and operating costs under the requested loan structure. A Citizens clearinghouse rule can affect how insurance is sourced or renewed, but it does not by itself establish rent, value, leverage, reserve requirements, or loan approval.
For a cash-flow lens, read our Florida insurance and DSCR cash-flow guide and use the Florida DSCR overview to start a property-specific conversation.
Frequently asked questions
Does SB 1028 apply to every Florida rental?
Do not assume so. The Florida Senate summary describes a commercial-lines clearinghouse for commercial residential and commercial nonresidential risks. Ask an insurance professional how the specific property is classified.
When is the commercial clearinghouse due?
The Senate summary says Citizens must implement the commercial-lines clearinghouse for surplus-lines coverage by January 1, 2027.
Does the law guarantee lower insurance costs?
No. It creates a process for offers and eligibility in the described commercial lines. Coverage, price, terms, and availability still depend on the risk and the insurer.
Source: Florida Senate, CS/CS/SB 1028 bill summary.
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