CS/HB 129 - Sinkhole Coverage Summary

• Citizens Property Insurance Corporation must submit biannual reports disclosing the number of residential sinkhole policies requested, issued, declined, and reasons for declining coverage.

• Establishes the Citizens Sinkhole Stabilization Repair Program requiring the corporation to manage sinkhole repairs through an approved contractor pool of at least 12 contractors, with repairs completed by March 31, 2015.

• Prohibits policyholders from being required to advance payment for stabilization repairs and allows policyholders 30 days to select a contractor from the pool.

• Requires sinkhole policies to offer deductibles of 2 percent, 5 percent, and 10 percent of dwelling limits with appropriate premium discounts for each deductible amount.

• Mandates the Office of Program Policy Analysis and Government Accountability conduct a study and submit a report by January 1, 2017 evaluating policyholder satisfaction, repair timeliness, contractor disputes, litigation trends, and program cost-effectiveness.