DeSantis Poised to Sign Bill Forcing Competition for Treasure Coast Commercial Insurance

A bill awaiting Gov. Ron DeSantis' signature could reshape how commercial properties across the Treasure Coast — from beachfront condos in Jensen Beach to strip malls in Port St. Lucie — shop for property insurance. Supporters promise lower costs and broader competition almost immediately.

SB 1028, passed by the Florida Legislature this session, would require Citizens Property Insurance Corp., the state's government-backed insurer of last resort, to establish a Commercial Insurance Clearinghouse. The new framework would force commercial property owners to seek private market quotes before qualifying for Citizens coverage — the same basic hurdle already required of Florida homeowners.

The practical impact is direct. Under current law, a commercial property owner in Stuart or Vero Beach needs only one private insurance quote and must show it is not within 20% of Citizens' premiums to qualify for the state-backed program. Critics say that standard effectively steers commercial policies into Citizens, leaving taxpayers exposed when a major storm hits. SB 1028 would tighten those rules significantly.

"Government-backed insurance is meant to support the market when needed, not to be the main option," said Jeff Kottkamp, former Florida lieutenant governor and current president and CEO of Florida TaxWatch. Kottkamp's organization, which has long advocated for free-market insurance reforms, is pressing DeSantis to sign the measure.

The stakes on the Treasure Coast are not abstract. Martin, St. Lucie, and Indian River counties carry a heavy concentration of commercial coastal properties — condominiums, hotels, golf courses and retail centers — that are precisely the category of risk SB 1028 targets. When those properties shelter inside Citizens after hurricanes drive private insurers from the market, Florida taxpayers statewide absorb any deficit through broad-based policyholder assessments.

Supporters argue that requiring commercial owners to run quotes through a clearinghouse — mirroring the personal lines process already in place — will draw private insurers back into the market and push premiums down through competition. All coverage offers made through the Commercial Clearinghouse must match or exceed Citizens' coverage terms, a consumer protection standard that backers say goes further than the personal lines equivalent.

The bill drew bipartisan support in the Legislature. Florida's Office of Insurance Regulation would retain oversight of surplus lines insurers and wholesale brokers operating inside the new clearinghouse framework.

DeSantis has not indicated publicly whether he will sign the bill. If he does, commercial property owners could begin seeing competitive market effects ahead of the 2026 hurricane season.

This article was generated with AI assistance using publicly available information. It was reviewed and approved by a human editor before publication. TC Sentinel uses AI writing tools in accordance with FTC guidelines.