SB 1028 Signed: Citizens Will Steer Condo Association Policies Toward Private and Surplus Lines Carriers

Condominium associations insured by Citizens Property Insurance Corporation could soon be moved to lightly regulated surplus lines insurers under a bill Governor Ron DeSantis signed late on June 16, 2026 ¹². The measure, CS/CS/SB 1028, became Chapter 2026-150, Laws of Florida, on June 17 ². For condominium boards, managers, owners and association counsel, it adds a new step to the insurance decisions that already drive budgets, assessments and disputes.

What the New Law Does

Under the law, Citizens must create a clearinghouse that shifts its condo and commercial policies to private insurers ¹. When a participating carrier offers coverage priced within 15 percent of what Citizens charges, the policy has to go to that carrier ¹. Only companies rated A- or better by A.M. Best may take part ¹. The law took effect immediately, but Citizens has until January 1, 2027, to set up the clearinghouse ¹.

The bill passed the Senate 33 to 1 and the House 88 to 19 ¹². Insurance Commissioner Michael Yaworsky initially opposed it because he wanted tighter oversight of the surplus lines carriers that would take policies out of Citizens ¹. Lawmakers changed the bill to give the Office of Insurance Regulation more power to vet companies applying to participate through the clearinghouse, and he dropped his opposition ¹.

Why Condo Associations Are in the Middle of It

Citizens’ commercial residential coverage is the line most associations use. The Senate staff analysis describes it as covering commercial properties used for residential purposes, including the parts of a condominium that are the association’s responsibility (generally the building envelope and common areas) and homeowners’ association common property ³.

That book has already shrunk sharply. According to the analysis, Citizens had 7,654 commercial residential policies at the end of 2023, 6,176 at the end of 2024 and 2,995 as of November 30, 2025 ³. The associations still insured there are likely among the harder risks to place.

Surplus Lines Coverage Is Different

Surplus lines insurers are largely exempt from state regulation, and their rates and policies are not reviewed by the Office of Insurance Regulation ¹. As of May 31, 2026, surplus lines carriers covered 778,000 policies in Florida, including 147,501 commercial property policies ¹. The staff analysis adds that surplus lines policies are not protected by the Florida Insurance Guaranty Association if the insurer becomes insolvent, and each insured must sign or acknowledge a disclosure saying so ³.

For a board, that means a renewal moved through the clearinghouse is not simply a change of carrier. Coverage terms, exclusions, deductibles and claims handling may all differ from the Citizens policy, and the cost comparison is only one piece of the decision.

Where Disputes May Follow

Insurance is one of the largest line items in many condominium budgets, so changes in carriers and terms tend to reach owners quickly. Several kinds of conflict are foreseeable:

• Owners and boards. Owners may question whether the board compared policy forms and deductibles carefully, or why a premium change produced a higher assessment.
• Associations and managers or agents. Questions about how a renewal was handled, what was disclosed and when can arise if a claim later goes badly.
• Associations and insurers after a storm. A surplus lines policy with unfamiliar terms can lead to coverage disputes once a claim is filed, and those disputes may not follow the patterns associations know from Citizens.

Each of these disputes involves ongoing relationships, technical documents and money that the community will have to raise one way or another. Mediation gives boards, owners, carriers and their counsel a structured setting to work through policy language, numbers and payment terms before positions harden in litigation.

Association counsel, boards, managers and carriers looking for a certified mediator for a condominium insurance or assessment dispute can check Tony Roca’s live availability and book a mediation by Zoom statewide.