Florida homeowners will pay higher bills as the state’s property insurance crisis continues. Several insurance companies have already left the local market despite the special legislative session aimed at satisfying the needs of entrepreneurs and homeowners. Now Sunshine State residents are footing the bills for the companies leaving Florida.
In August, another insurance firm – the 10th since April 2021 – was added to the list of insolvent providers. The Florida Insurance Guaranty Association is a non-profit organization created by the state that “establishes and maintains a service-oriented operation for processing covered claims of insolvent members”. It has issued the second surcharge on insurance policy payments by homeowners in 2022 to pay the bills of companies that went into receivership.
A 0.7% surcharge was approved on August 19, after the Florida Office of Insurance Regulation ordered it. Referencing the state laws, the Association declared that “members will be able to recoup the 0.70% assessment from their policyholders over the Assessment Year starting January 1, 2023, through December 31, 2023.”
In the end of July, the Florida Office of Insurance Regulation announced signing a temporary agreement with Citizens Property Insurance Corporation. This solution will enable Floridians to maintain the insurance coverage during the hurricane season.
“The greatest priority of the Florida Office of Insurance Regulation is ensuring consumers have access to insurance, especially during a hurricane season; and because of the uncertainty in the local market, we have been forced to take extraordinary steps to protect millions of consumers,” representatives of the Florida Office of Insurance Regulation say.