The State of Florida is ordering a new fee attached to nearly everyone’s home insurance policy.

It’s being called an “emergency assessment,” and its purpose is to help the state pay off claims of insolvent companies.

If a homeowner’s insurance policy is $4k a year, a 1% assessment would cost an extra $40 a year.

Gloria Smith is a homeowner who opposes paying more to help the state pay off the claims of companies that went insolvent.

“I’ve seen an increase,” Smith said. “We already pay enough for insurance, and now I have to pay for everybody else’s claims? I’m not okay with that.”

However, Insurance Commissioner Mike Yaworsky approved the 1% emergency assessment to take effect in October.

Reid McDaniel with McDaniel Insurance Solutions said if the fee takes effect on October 1st and a policy renews in November, homeowners may not see the cost appear until next year in 2024.

The fee comes as many insurance industry experts, including Reid, warn that rate hikes are expected in June.

“At the rate insurance is increasing, you may not even notice 1% at this point,” Reid warned.

Many homeowners see the new assessment as a bailout for insurance companies.

“It is a bailout but not for the insurance company because they have already left business,” McDaniel said, insisting the bailout is for homeowners left empty-handed after seven insurance companies went insolvent in Florida in the last year.

The emergency assessment will not apply to vehicle insurance policies.

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