FL S1274

Creates a new type of "limited sinkhole coverage insurance" for personal residential properties, allowing authorized insurers to offer policies that cover only building stabilization and foundation repairs for sinkhole losses, with a minimum policy limit of $50,000

Sets the minimum surplus requirement at $7.5 million for domestic insurers that exclusively write limited sinkhole coverage insurance, lower than the standard $15-50 million required for residential property insurers

Prohibits Citizens Property Insurance Corporation from issuing limited sinkhole coverage insurance policies

Requires insurers to obtain signed acknowledgments from applicants with bold, uppercase warnings that the policy is "repair-only" and may result in high out-of-pocket expenses if coverage limits are below full replacement cost

Allows insurers to establish rates that provide a "reasonable rate of return" for policies filed before October 1, 2019, exempt from certain rate adequacy standards, with the Office of Insurance Regulation authorized to examine rates for compliance