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The 2025 Florida Statutes
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F.S. 627.701627.701 Liability of insureds; coinsurance; deductibles.—(1) A property insurer may issue an insurance policy or contract covering either real or personal property in this state which contains provisions requiring the insured to be liable as a coinsurer with the insurer issuing the policy for any part of the loss or damage by covered peril to the property described in the policy only if:(a) The following words are printed or stamped on the face of the policy, or a form containing the following words is attached to the policy: “Coinsurance contract: The rate charged in this policy is based upon the use of the coinsurance clause attached to this policy, with the consent of the insured.”; (b) The coinsurance clause in the policy is clearly identifiable; and (c) The rate for the insurance with or without the coinsurance clause is furnished the insured upon his or her request. (2) Unless the office determines that the deductible provision is clear and unambiguous, a property insurer may not issue an insurance policy or contract covering real property in this state which contains a deductible provision that:(a) Applies solely to hurricane losses. (b) States the deductible as a percentage rather than as a specific amount of money. (c) Applies solely to a roof loss as provided in subsection (10). (3)(a) Except as otherwise provided in this subsection, prior to issuing a personal lines residential property insurance policy, the insurer must offer alternative deductible amounts applicable to hurricane losses equal to $500, 2 percent, 5 percent, and 10 percent of the policy dwelling limits, unless the specific percentage deductible is less than $500. The written notice of the offer shall specify the hurricane deductible to be applied in the event that the applicant or policyholder fails to affirmatively choose a hurricane deductible. The insurer must provide such policyholder with notice of the availability of the deductible amounts specified in this subsection in a form approved by the office in conjunction with each renewal of the policy. The failure to provide such notice constitutes a violation of this code but does not affect the coverage provided under the policy. (b) This subsection does not apply with respect to a deductible program lawfully in effect on June 14, 1995, or to any similar deductible program, if the deductible program requires a minimum deductible amount of no less than 2 percent of the policy limits. (c) With respect to a policy covering a risk with dwelling limits of at least $100,000, but less than $250,000, the insurer may, in lieu of offering a policy with a $500 hurricane deductible as required by paragraph (a), offer a policy that the insurer guarantees it will not nonrenew for reasons of reducing hurricane loss for one renewal period and that contains up to a 2 percent hurricane deductible as required by paragraph (a). (d) For the following policies, the following alternative deductible amounts are authorized:1. With respect to a policy covering a risk with dwelling limits of $250,000 or more, the insurer need not offer the $500 hurricane deductible as required by paragraph (a), but must, except as otherwise provided in this subsection, offer the other hurricane deductibles as required by paragraph (a). 2. With respect to a policy covering a risk with dwelling limits of $1 million or more, but less than $3 million, the insurer may, in lieu of offering the 2 percent deductible as required by paragraph (a), offer a deductible amount applicable to hurricane losses equal to 3 percent of the policy dwelling limits. 3. With respect to a policy covering a risk with dwelling limits of $3 million or more, the insurer need not offer the 2 percent deductible as required by paragraph (a), but must, except as otherwise provided by this subsection, offer the other hurricane deductibles as required by paragraph (a). (4)(a) Any policy that contains a separate hurricane deductible must on its face include in boldfaced type no smaller than 18 points the following statement: “THIS POLICY CONTAINS A SEPARATE DEDUCTIBLE FOR HURRICANE LOSSES, WHICH MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU.” A policy containing a coinsurance provision applicable to hurricane losses must on its face include in boldfaced type no smaller than 18 points the following statement: “THIS POLICY CONTAINS A CO-PAY PROVISION THAT MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU.” (b) For any personal lines residential property insurance policy containing a separate hurricane deductible, the insurer shall compute and prominently display the actual dollar value of the hurricane deductible on the declarations page of the policy at issuance and, for renewal, on the renewal declarations page of the policy or on the premium renewal notice. (c) For any personal lines residential property insurance policy containing an inflation guard rider, the insurer shall compute and prominently display the actual dollar value of the hurricane deductible on the declarations page of the policy at issuance and, for renewal, on the renewal declarations page of the policy or on the premium renewal notice. In addition, for any personal lines residential property insurance policy containing an inflation guard rider, the insurer shall notify the policyholder of the possibility that the hurricane deductible may be higher than indicated when loss occurs due to application of the inflation guard rider. Such notification shall be made on the declarations page of the policy at issuance and, for renewal, on the renewal declarations page of the policy or on the premium renewal notice. (d)1. A personal lines residential property insurance policy covering a risk valued at less than $500,000 may not have a hurricane deductible in excess of 10 percent of the policy dwelling limits, unless the following conditions are met:a. The policyholder must personally write or type and provide to the insurer the following statement and sign his or her name, which must also be signed by every other named insured on the policy, and dated: “I do not want the insurance on my home to pay for the first (specify dollar value) of damage from hurricanes. I will pay those costs. My insurance will not.” b. If the structure insured by the policy is subject to a mortgage or lien, the policyholder must provide the insurer with a written statement from the mortgageholder or lienholder indicating that the mortgageholder or lienholder approves the policyholder electing to have the specified deductible. 2. A deductible subject to the requirements of this paragraph applies for the term of the policy and for each renewal thereafter. Changes to the deductible percentage may be implemented only as of the date of renewal. 3. An insurer shall keep the original copy of the signed statement required by this paragraph, electronically or otherwise, and provide a copy to the policyholder providing the signed statement. A signed statement meeting the requirements of this paragraph creates a presumption that there was an informed, knowing election of coverage. 4. The commission shall adopt rules providing appropriate alternative methods for providing the statements required by this section for policyholders who have a handicapping or disabling condition that prevents them from providing a handwritten statement. (e)1. A personal lines residential property insurance policy that contains a separate roof deductible must include, on the page immediately behind the declarations page, with no other policy language on the page, in boldfaced type no smaller than 18 point, the following statement: “YOU ARE ELECTING TO PURCHASE COVERAGE ON YOUR HOME WHICH CONTAINS A SEPARATE DEDUCTIBLE FOR ROOF LOSSES. BE ADVISED THAT THIS MAY RESULT IN HIGH OUT-OF-POCKET EXPENSES TO YOU. PLEASE DISCUSS WITH YOUR INSURANCE AGENT.” 2. For any personal lines residential property insurance policy containing a separate roof deductible, the insurer shall compute and prominently display on the declarations page of the policy or on the premium renewal notice the actual dollar value of the roof deductible of the policy at issuance and renewal. (5)(a) The hurricane deductible of any personal lines residential property insurance policy issued or renewed on or after May 1, 2005, shall be applied as follows:1. The hurricane deductible shall apply on an annual basis to all covered hurricane losses that occur during the calendar year for losses that are covered under one or more policies issued by the same insurer or an insurer in the same insurer group. 2. If a hurricane deductible applies separately to each of one or more structures insured under a single policy, the requirements of this paragraph apply with respect to the deductible for each structure. 3. If there was a hurricane loss for a prior hurricane or hurricanes during the calendar year, the insurer may apply a deductible to a subsequent hurricane which is the greater of the remaining amount of the hurricane deductible or the amount of the deductible that applies to perils other than a hurricane. Insurers may require policyholders to report hurricane losses that are below the hurricane deductible or to maintain receipts or other records of such hurricane losses in order to apply such losses to subsequent hurricane claims. 4. If there are hurricane losses in a calendar year on more than one policy issued by the same insurer or an insurer in the same insurer group, the hurricane deductible shall be the highest amount stated in any one of the policies. If a policyholder who had a hurricane loss under the prior policy is provided or offered a lower hurricane deductible under the new or renewal policy, the insurer must notify the policyholder, in writing, at the time the lower hurricane deductible is provided or offered, that the lower hurricane deductible will not apply until January 1 of the following calendar year. (b) For commercial residential property insurance policies issued or renewed on or after January 1, 2006, the insurer must offer the policyholder the following alternative hurricane deductibles:1. A hurricane deductible that applies on an annual basis as provided in paragraph (a); and 2. A hurricane deductible that applies to each hurricane. (6)(a) It is the intent of the Legislature to encourage the use of higher hurricane deductibles as a means of increasing the effective capacity of the hurricane insurance market in this state and as a means of limiting the impact of rapidly changing hurricane insurance premiums. The Legislature finds that the hurricane deductibles specified in this subsection are reasonable when a property owner has made adequate provision for restoration of the property to its full value after a catastrophic loss. (b) A personal lines residential insurance policy providing hurricane coverage may, at the mutual option of the insured and insurer, include a secured hurricane deductible as described in paragraph (c) if the applicant presents the insurer a certificate of security as described in paragraph (d). An insurer may not directly or indirectly require a secured deductible under this subsection as a condition of issuing or renewing a policy. A certificate of security is not required with respect to an applicant who owns a 100 percent equity interest in the property. (c) A secured hurricane deductible must include the substance of the following:1. The first $500 of any claim, regardless of the peril causing the loss, is fully deductible. 2. With respect to hurricane losses only, the next $5,000 in losses are fully insured, subject only to a copayment requirement of 10 percent. 3. With respect to hurricane losses only, the remainder of the claim is subject to a deductible equal to a specified percentage of the policy dwelling limits in excess of the deductible allowed under former paragraph (3)(a) but no higher than 10 percent of the policy dwelling limits. 4. The insurer agrees to renew the coverage on a guaranteed basis for a period of years after initial issuance of the secured deductible equal to at least 1 year for each 2 percentage points of deductible specified in subparagraph 3. unless the policy is canceled for nonpayment of premium or the insured fails to maintain the certificate of security. Such renewal shall be at the same premium as the initial policy except for premium changes attributable to changes in the value of the property. (d) The office shall draft and formally propose as a rule the form for the certificate of security. The certificate of security may be issued in any of the following circumstances:1. A mortgage lender or other financial institution may issue a certificate of security after granting the applicant a line of credit, secured by equity in real property or other reasonable security, which line of credit may be drawn on only to pay for the deductible portion of insured construction or reconstruction after a hurricane loss. In the sole discretion of the mortgage lender or other financial institution, the line of credit may be issued to an applicant on an unsecured basis. 2. A licensed insurance agent may issue a certificate of security after obtaining for an applicant a line of credit, secured by equity in real property or other reasonable security, which line of credit may be drawn on only to pay for the deductible portion of insured construction or reconstruction after a hurricane loss. The Florida Hurricane Catastrophe Fund shall negotiate agreements creating a financing consortium to serve as an additional source of lines of credit to secure deductibles. Any licensed insurance agent may act as the agent of such consortium. 3. Any person qualified to act as a trustee for any purpose may issue a certificate of security secured by a pledge of assets, with the restriction that the assets may be drawn on only to pay for the deductible portion of insured construction or reconstruction after a hurricane loss. 4. Any insurer, including any admitted insurer or any surplus lines insurer, may issue a certificate of security after issuing the applicant a policy of supplemental insurance that will pay for 100 percent of the deductible portion of insured construction or reconstruction after a hurricane loss. 5. Any other method approved by the office upon finding that such other method provides a similar level of security as the methods specified in this paragraph and that such other method has no negative impact on residential property insurance catastrophic capacity. The legislative intent of this subparagraph is to provide the flexibility needed to achieve the public policy of expanding property insurance capacity while improving the affordability of property insurance. (e) An issuer of a certificate of security may terminate the certificate for failure to honor any of the terms of the underlying financial arrangement. The issuer must provide notice of termination to the insurer within 10 working days after termination. Unless the policyholder obtains a replacement certificate of security within an additional 20 working days after such notice, the deductible provision in the policy must revert to a lower deductible otherwise offered by the insurer and the policyholder is responsible for any additional premium required for a policy with such deductible. (7) Prior to issuing a personal lines residential property insurance policy on or after April 1, 1997, or prior to the first renewal of a residential property insurance policy on or after April 1, 1997, the insurer must offer a deductible equal to $500 applicable to losses from perils other than hurricane. The insurer must provide the policyholder with notice of the availability of the deductible specified in this subsection in a form approved by the office at least once every 3 years. The failure to provide such notice constitutes a violation of this code but does not affect the coverage provided under the policy. An insurer may require a higher deductible only as part of a deductible program lawfully in effect on June 1, 1996, or as part of a similar deductible program. (8) Notwithstanding the other provisions of this section or of other law, but only as to hurricane coverage as defined in s. 627.4025 for commercial lines residential coverages, an insurer may offer a deductible in an amount not exceeding 10 percent of the insured value if, at the time of such offer and at each renewal, the insurer also offers to the policyholder a deductible in the amount of 3 percent of the insured value. Nothing in this subsection prohibits any deductible otherwise authorized by this section. All forms by which the offers authorized in this subsection are made or required to be made shall be on forms that are adopted or approved by the commission or office. (9) With respect to hurricane coverage provided in a policy of residential coverage, when the policyholder has taken appropriate hurricane mitigation measures regarding the residence covered under the policy, the insurer shall provide the insured the option of selecting an appropriate reduction in the policy’s hurricane deductible or selecting the appropriate discount credit or other rate differential as provided in s. 627.0629. The insurer must provide the policyholder with notice of the options available under this subsection on a form approved by the office. (10)(a) Notwithstanding any other provision of law, an insurer issuing a personal lines residential property insurance policy may include in such policy a separate roof deductible that meets all of the following requirements:1. The insurer has complied with the offer requirements under subsection (7) regarding a deductible applicable to losses from perils other than a hurricane. 2. The roof deductible may not exceed the lesser of 2 percent of the Coverage A limit of the policy or 50 percent of the cost to replace the roof. 3. The premium that a policyholder is charged for the policy includes an actuarially sound credit or premium discount for the roof deductible. 4. The roof deductible applies only to a claim adjusted on a replacement cost basis. 5. The roof deductible does not apply to any of the following events:a. A total loss to a primary structure in accordance with the valued policy law under s. 627.702 which is caused by a covered peril. b. A roof loss resulting from a hurricane as defined in s. 627.4025(2)(c). c. A roof loss resulting from a tree fall or other hazard that damages the roof and punctures the roof deck. d. A roof loss requiring the repair of less than 50 percent of the roof. If a roof deductible is applied, no other deductible under the policy may be applied to the loss or to any other loss to the property caused by the same covered peril. (b) At the time of initial issuance of a personal lines residential property insurance policy, an insurer may offer the policyholder a separate roof deductible with the ability to opt-out and reject the separate roof deductible. To reject a separate roof deductible, the policyholder shall sign a form approved by the office. (c) At the time of renewal, an insurer may add a separate roof deductible to a personal lines residential property insurance policy if the insurer provides a notice of change in policy terms pursuant to s. 627.43141. The insurer must also offer the policyholder the ability to opt-out and reject the separate roof deductible. To reject a separate roof deductible, the policyholder shall sign a form approved by the office. (d) The office shall expedite the review of any filing of insurance forms that only contain a separate roof deductible pursuant to this subsection. The commission may adopt model forms or guidelines that provide options for roof deductible language which may be used for filing by insurers. If an insurer makes a filing pursuant to a model form or guideline issued by the office, the office must review the filing within the initial 30-day review period authorized by s. 627.410(2), and the roof deductible portion of the filing is not subject to the 15-day extension for review under that subsection. History.—s. 605, ch. 59-205; s. 3, ch. 76-168; s. 1, ch. 77-457; ss. 2, 3, ch. 81-318; ss. 538, 541, 809(2nd), ch. 82-243; s. 79, ch. 82-386; s. 114, ch. 92-318; s. 16, ch. 93-410; s. 13, ch. 95-276; s. 12, ch. 96-194; s. 11, ch. 97-55; s. 26, ch. 97-93; s. 1736, ch. 97-102; s. 1183, ch. 2003-261; s. 4, ch. 2004-480; ss. 12, 13, ch. 2005-111; s. 45, ch. 2006-12; s. 28, ch. 2007-1; s. 17, ch. 2007-90; s. 151, ch. 2008-4; s. 13, ch. 2022-268; s. 21, ch. 2023-172; s. 8, ch. 2023-217.
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Annotations, Discussions, Cases:
Cases Citing Statute 627.701
Total Results: 26
94 So. 3d 541, 37 Fla. L. Weekly Supp. 395, 2012 WL 1947863, 2012 Fla. LEXIS 1063
Supreme Court of Florida | Filed: May 31, 2012 | Docket: 60310909
Cited 80 times | Published
(Chalfonte) appealed the dismissal of claims under section 627.701(4)(a), Florida Statutes (2009), and the denial
874 So. 2d 26, 2004 WL 912604
District Court of Appeal of Florida | Filed: Apr 30, 2004 | Docket: 1738250
Cited 34 times | Published
form number CP 00 10 06 95.
[3] We note that section 627.701, Florida Statutes (1997), which places certain
943 So. 2d 823, 2006 WL 3024902
District Court of Appeal of Florida | Filed: Dec 15, 2006 | Docket: 2514380
Cited 19 times | Published
86c1.pdf (discussing statutory changes to section 627.701, Florida Statutes, in analysis performed prior
121 So. 3d 433, 38 Fla. L. Weekly Supp. 507, 2013 WL 3333823, 2013 Fla. LEXIS 1379
Supreme Court of Florida | Filed: Jul 3, 2013 | Docket: 60234435
Cited 18 times | Published
reservation or holdback of any depreciation in value.” § 627.701 l(3)(a), Fla. Stat. (2012). In the absence of
561 F.3d 1267
Court of Appeals for the Eleventh Circuit | Filed: Mar 9, 2009 | Docket: 399376
Cited 17 times | Published
under Fla. Stat. § 627.701(4)(a) and whether an insurer's failure to comply with § 627.701(4)(a) renders
504 F. Supp. 2d 1307, 2007 U.S. Dist. LEXIS 45458, 2007 WL 1812277
District Court, S.D. Florida | Filed: Jun 22, 2007 | Docket: 2518606
Cited 9 times | Published
Policy fails to comply with Florida statutes section 627.701. Count II is a claim for breach of contract
765 So. 2d 870, 2000 WL 1161911
District Court of Appeal of Florida | Filed: Aug 18, 2000 | Docket: 2517726
Cited 9 times | Published
lacks the coinsurance disclosure required by section 627.701. The policy provides:
COVERAGE DLoss Of Use
526 F. Supp. 2d 1251, 2007 U.S. Dist. LEXIS 91826, 2007 WL 4531971
District Court, S.D. Florida | Filed: Nov 19, 2007 | Docket: 808586
Cited 8 times | Published
asserted that the deductible provision violated Section 627.701(4)(a) of the Florida Statutes, which states:
541 So. 2d 1297, 1989 WL 34515
District Court of Appeal of Florida | Filed: Apr 11, 1989 | Docket: 1516580
Cited 8 times | Published
under the Florida Insurance Code, specifically Section 627.701(1), Florida Statutes (1983), which provides:
589 F. Supp. 2d 1336, 2008 U.S. Dist. LEXIS 100688, 2008 WL 5169302
District Court, S.D. Florida | Filed: Dec 8, 2008 | Docket: 1482612
Cited 7 times | Published
due to its failure to comply with Fla. Stat. § 627.701. QBE argues that this Court should dismiss this
110 So. 3d 110, 2013 WL 1136315, 2013 Fla. App. LEXIS 4443
District Court of Appeal of Florida | Filed: Mar 20, 2013 | Docket: 60230175
Cited 5 times | Published
construction or repair of property. See, e.g., § 627.701 l(l)(b), Fla. Stat. (2004).
. Section 682.13(1)
577 F. Supp. 2d 1256, 2008 U.S. Dist. LEXIS 90769, 2008 WL 4294396
District Court, S.D. Florida | Filed: Sep 16, 2008 | Docket: 985662
Cited 5 times | Published
declaratory relief under Florida Statutes, section 627.701.[1] Dome's counterclaim asserts that the insurance
695 F.3d 1215, 2012 WL 4120351, 2012 U.S. App. LEXIS 19814
Court of Appeals for the Eleventh Circuit | Filed: Sep 20, 2012 | Docket: 1418071
Cited 4 times | Published
complaint also claimed that QBE had violated Section 627.701(4)(a) of the Florida Statutes. QBE moved to
616 F. Supp. 2d 1258, 2008 U.S. Dist. LEXIS 85237, 2008 WL 4541022
District Court, S.D. Florida | Filed: Oct 9, 2008 | Docket: 2396356
Cited 4 times | Published
because it does not comply with the requirements of § 627.701(4)(a), Florida Statutes (2007) governing publication
124 So. 3d 947, 2013 WL 5495541, 2013 Fla. App. LEXIS 15681
District Court of Appeal of Florida | Filed: Oct 4, 2013 | Docket: 60235583
Cited 2 times | Published
type-size requirements established by Fla. Stat. § 627.701(4)(a) render a noncompliant hurricane deductible
752 F. Supp. 2d 1282, 2010 WL 4722288
District Court, S.D. Florida | Filed: Nov 22, 2010 | Docket: 2339937
Cited 2 times | Published
such a deductible provision violates Fla. Stat. § 627.701 (as applicable at the time the policy was issued)
674 F. Supp. 2d 1333, 2009 U.S. Dist. LEXIS 122258, 2009 WL 4927162
District Court, S.D. Florida | Filed: Dec 22, 2009 | Docket: 2554935
Cited 2 times | Published
policy fails to comply with Florida Statute Section 627.701 and, therefore, the provision concerning a
33 So. 3d 48, 2009 Fla. App. LEXIS 18423, 2009 WL 4283084
District Court of Appeal of Florida | Filed: Dec 2, 2009 | Docket: 1649428
Cited 2 times | Published
Department of Insurance regulations. See, e.g., § 627.701, Fla. Stat., et seq. The statute in question affects
643 F. Supp. 2d 1356, 2009 WL 2482162, 2009 U.S. Dist. LEXIS 75319
District Court, S.D. Florida | Filed: Jun 15, 2009 | Docket: 2474995
Cited 2 times | Published
policy fails to comply with Florida Statute Section 627.701 and therefore the provision concerning a separate
774 F. Supp. 2d 1224, 2011 U.S. Dist. LEXIS 38562
District Court, S.D. Florida | Filed: Mar 31, 2011 | Docket: 2342454
Cited 1 times | Published
Policies is void pursuant to Florida Statutes § 627.701(4) which requires specific disclosures to be made
741 F. Supp. 2d 1327, 2010 U.S. Dist. LEXIS 108181, 2010 WL 3860253
District Court, S.D. Florida | Filed: Oct 1, 2010 | Docket: 2337368
Cited 1 times | Published
the Insurance Contract fails to comply with Section 627.701(4)(a), Florida Statutes; therefore, the provisions
607 F. Supp. 2d 1340, 2009 U.S. Dist. LEXIS 29108, 2009 WL 959917
District Court, S.D. Florida | Filed: Apr 8, 2009 | Docket: 2281562
Cited 1 times | Published
Middlebrooks determined that QBE violated Fla. Stat. § 627.701(4) by not putting the language in the proper font
District Court of Appeal of Florida | Filed: Nov 14, 2022 | Docket: 62607476
Published
and type-
size requirements established by section 627.701(4)(a), Florida Statutes
(2009), rendered a
Court of Appeals for the Eleventh Circuit | Filed: Jul 20, 2021 | Docket: 60071610
Published
percentage-deductible violated Florida Statute § 627.701(2)(b), which says that
an insurance policy cannot
161 So. 3d 581, 2014 Fla. App. LEXIS 20366, 2014 WL 7156315
District Court of Appeal of Florida | Filed: Dec 17, 2014 | Docket: 2616092
Published
warning on the declarations page. Likewise, section 627.701(4)(a), Florida Statutes, required a bold warning
733 F. Supp. 2d 1332, 2010 U.S. Dist. LEXIS 93527, 2010 WL 3290528
District Court, S.D. Florida | Filed: Aug 10, 2010 | Docket: 2336452
Published
insurance contract fails to comply with Fla. Stat. § 627.701(1)(a-b) and (4)(a), and therefore the coinsurance
