Florida SB 1028 (2026): Citizens Commercial Residential Insurance Clearinghouse

Quick Answer

CS/CS/SB 1028 (chapter 2026-150, Laws of Florida) is a Citizens Property Insurance Corporation law. It became law on June 16, 2026 and requires Citizens to build "commercial lines" clearinghouses by January 1, 2027. Those clearinghouses steer commercial residential and commercial nonresidential applicants and policyholders toward private insurers, and in some cases make them ineligible for Citizens coverage.

The bill does not use the words "condominium" or "association." Whether a particular association's master policy is a "commercial residential" risk under Citizens' rules is a question for your insurance agent and counsel. That link is our inference, not something the bill says.

At a Glance

What the Law Says

Two new commercial clearinghouses

Section 627.3518 already described a Citizens "clearinghouse" for personal lines. The bill keeps that and adds two commercial ones. By January 1, 2027 Citizens must implement a "commercial lines clearinghouse for authorized insurance" and a separate "commercial lines clearinghouse for surplus lines insurance." Each covers new applicants and existing Citizens policyholders for commercial residential and commercial nonresidential coverage.

Before Citizens binds or renews commercial coverage, the application or renewal must go first to the authorized-insurer clearinghouse, then to the surplus lines clearinghouse. The bill says an authorized-insurer offer window is 5 days; if no qualifying offer comes in, the risk "shall be eligible for submission to the commercial lines clearinghouse for surplus lines insurance."

When a risk becomes ineligible for Citizens

• Commercial nonresidential, authorized insurer: an applicant for new or renewal coverage "is not eligible for coverage from the corporation if provided an offer of comparable coverage from an authorized insurer through the program."
• Commercial residential, authorized insurer: a new applicant is ineligible if offered comparable coverage at a premium "at or below the eligibility threshold" in s. 627.351(6)(c)5.c. The Senate committee summary describes this as an offer not more than 20 percent above the Citizens cost. We did not read the numeric threshold in the statute itself, so confirm it before relying on it.
• Surplus lines offers: an applicant or Citizens policyholder becomes ineligible if an approved surplus lines clearinghouse insurer offers comparable coverage and the total cost is "not more than 15 percent greater" than Citizens' cost. New paragraph 627.351(6)(oo) says Citizens "may not issue new coverage" in that situation.
• Offers above the threshold: the applicant or insured "may elect to accept such coverage, or may elect to accept or continue coverage with the corporation."

What "comparable coverage" and "total cost" mean

"Comparable coverage" is coverage "equivalent to or better than coverage from the corporation as to all aspects of such coverage," as determined by Citizens through the clearinghouse process. "Administrative, procedural, and other such terms and conditions may not be considered." "Total cost" is the annual premium plus "all fees, taxes, assessments, surcharges, and any other mandatory charges" for the full policy period.

Rules for insurers, agents and the Office of Insurance Regulation

• Only insurers rated A- or higher with a financial size category of A-VII or higher (A.M. Best) can be approved surplus lines clearinghouse insurers.
• Citizens must select a clearinghouse administrator for each commercial clearinghouse within 90 days after the effective date.
• The Office of Insurance Regulation must review and approve the program by final order within 3 months after the effective date and annually after that, unless it waives review.
• Citizens may not apply discretionary rate adjustments to risks submitted to the surplus lines clearinghouse.
• Surplus lines insurers' offers that are not comparable may still be made but are "outside of the program" and not subject to the new 15 percent paragraph.
• If there is "insufficient commercial support" for a commercial clearinghouse, Citizens is relieved of that obligation until there is.

Nonrenewal notice

For nonrenewal caused by an authorized-insurer offer, the existing 45-day notice rule in s. 627.4133(2)(b)5. applies. For a surplus lines offer, s. 627.4133 does not apply, but the administrator must give the first-named insured written notice of nonrenewal with the reason within 5 days after the offer. If it does not, the surplus lines ineligibility paragraph "does not apply to the risk."

What This Means in Practice

Boards

Our reading: this matters only if your association's building insurance is, or may be, with Citizens. The bill does not name condominiums. Citizens' plan uses "commercial residential" as a policy class, and the bill's text applies to that class. Ask your agent whether your master policy is written in that class. Chapter 718 insurance duties are separate and are not changed by this bill. See our section 718.111 page for the association insurance rules.

Timing

Nothing in the bill requires a board to act on a particular date. The clearinghouses are due January 1, 2027, and the bill does not say how fast the first renewals will move through them. A renewal-season budget should assume your agent may receive private offers, and possibly a nonrenewal notice, once the system is live. The 45-day and 5-day notice periods above differ by route, so ask the agent which one applies.

What the law does not say

• It does not say a condominium or HOA must leave Citizens.
• It does not say private coverage will be cheaper; the eligibility test compares total cost within stated percentages.
• It does not set a dollar or unit-count cutoff for who is "commercial residential." Open question: how Citizens will classify mixed-use or small associations in practice.
• It does not address assessments or special assessments caused by a premium increase. Those follow the governing documents and Chapter 718 or 720.

Timeline

Related Florida Law

• Section 718.111: official records, insurance and reporting
• Chapter 718: the Condominium Act
• HB 913 (2025): condominium and cooperative reserves, SIRS and meetings
• Florida HOA laws complete guide

Board Checklist

• Find out who insures the association and whether any policy is with Citizens.
• Ask your agent whether the master policy is classed "commercial residential" or "commercial nonresidential."
• Put the renewal date and January 1, 2027 side by side and ask what could change before then.
• Ask the agent how a nonrenewal notice would reach the association and who is the "first-named insured."
• Keep the current policy's terms, deductibles and total cost on file so offers can be compared.
• Tell the manager and treasurer so budget reserves for insurance are set with this in mind.
• Have counsel review any proposed coverage change against your declaration and Chapter 718 or 720.

Frequently Asked Questions

Does SB 1028 apply to condominium associations?

The bill and its summary do not mention condominiums. It applies to Citizens' commercial residential and commercial nonresidential coverage. Whether your master policy falls in that class is something to confirm with your agent.

When did SB 1028 take effect?

On becoming law. The bill page lists June 16, 2026, the date of the Governor's approval. The commercial clearinghouses are due by January 1, 2027.

Can Citizens drop my association because a private insurer makes an offer?

Under the bill, a risk can become ineligible for Citizens if it receives a comparable-coverage offer within the stated cost limits. Offers above the limits leave the insured free to accept them or to accept or continue Citizens coverage.

What is a "surplus lines clearinghouse insurer"?

An eligible surplus lines insurer rated A- or higher with at least an A-VII size category from A.M. Best, recommended by the administrator and verified by the Office of Insurance Regulation (deemed verified if the Office does not act within 30 business days).

Is the 15 percent test about premium only?

No. It uses "total cost of insurance coverage for the specific risk," which adds fees, taxes, assessments, surcharges and other mandatory charges to the premium.

Does the bill change what an association must insure under Chapter 718?

No. It amends sections 627.351 and 627.3518 only.

Where can I read the bill?

On the Florida Senate site, listed in the sources section below.

Where This Comes From

We read the enrolled text of CS/CS/SB 1028 (2026), the Senate bill history page, and the Banking and Insurance Committee's bill summary, all on the Florida Senate site. The statutes' current numbering after codification was not checked, and we did not read the numeric eligibility threshold in s. 627.351(6)(c)5.c. The official bill page is flsenate.gov/Session/Bill/2026/1028.

How APM Helps

Association Property Managers provides remote HOA and condo management for associations in Florida, starting at a flat $99/month per community with no per-door fees or long-term contracts. See remote management in Florida, browse every Florida state-law guide, or request a free proposal, delivered within three business days. Laws and licensing rules differ by state, and we confirm the requirements for Florida when we build your proposal.

Legal disclaimer: This article is general information, not legal advice. Laws change and associations differ. Confirm the current statute text and how it applies to your governing documents with a licensed Florida attorney before acting.