Florida Insurance Fee Ends Two Years Early
An assessment added after insurer failures will end in 2026, earlier than planned. Officials say policyholders statewide could save about $650 million.
TALLAHASSEE, Fla. — A 1% emergency assessment on Florida property insurance policies will end two years early after the Florida Insurance Guaranty Association voted to terminate the charge.
Under the new timeline, the assessment will continue to appear on policies renewing through Sept. 30, 2026, but will end on Oct. 1, 2026. Officials estimate that ending the charge early will save Florida homeowners and businesses up to $650 million over the following two years, through Sept. 30, 2028.
For individual policyholders, the savings depends on the cost of the insurance policy. For example:
- $2,000 annual premium: about $20 per year
- $3,500 annual premium: about $35 per year
- $5,000 annual premium: about $50 per year
The charge, first applied Oct. 1, 2023, helped repay bonds issued after a wave of insurer insolvencies left unpaid claims and required refunds of unearned premiums to policyholders.
Property insurance costs have become a major factor in Florida home purchases, and Florida Realtors® has long supported legislative efforts aimed at stabilizing the state’s insurance market.
The Florida Insurance Guaranty Association, known as FIGA, serves as a financial safety net when insurance companies become insolvent.
Florida Chief Financial Officer Blaise Ingoglia said the decision is good news for policyholders statewide.
“It is always a good day when we can announce that Florida families will see a reduction in their insurance premiums, and this announcement is a huge win for Florida’s policyholders,” Ingoglia said. “When an insurance company goes insolvent, it not only hurts its policyholders, but it also hurts all policyholders in the state of Florida.”
Florida Insurance Commissioner Mike Yaworsky said the move reflects a stabilizing insurance market following major legislative changes passed in 2022.
“The historic reforms by the Florida Legislature in 2022 continue to reverberate through the market, and ending this assessment two years early is yet another indicator that the insurance market has stabilized and is producing savings for consumers,” Yaworsky said.
The Florida Legislature created FIGA in 1970 to protect policyholders with claims when a property and casualty insurer becomes insolvent. The program is funded through remaining assets from failed insurers, reinsurance recoveries and assessments on insurance policies statewide.
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