Florida Property Insurance Assessment Scheduled to End Early in 2026 – ProgramBusiness

A temporary assessment applied to Florida property insurance policies will end two years earlier than originally scheduled. The Florida Insurance Guaranty Association voted to terminate the charge, which officials say could save policyholders across the state approximately $650 million.

The 1% emergency assessment was introduced after several insurance company insolvencies created financial obligations related to unpaid claims and premium refunds. The change in timeline affects property insurance policies statewide.

Assessment Timeline and Early Termination

The emergency assessment first appeared on Florida property insurance policies beginning Oct. 1, 2023. It was designed as a temporary charge to help repay bonds issued after insurer failures.

Under the revised schedule, the assessment will continue to appear on policies that renew through Sept. 30, 2026. However, the charge will end on Oct. 1, 2026. Officials estimate that removing the assessment earlier than expected will save up to $650 million for Florida homeowners and businesses over the next two years, through Sept. 30, 2028.

Estimated Impact on Policyholders

Savings will vary based on the cost of an individual insurance policy. Examples provided by officials show the potential impact on annual premiums:

• A $2,000 annual premium may see savings of about $20 per year
• A $3,500 annual premium may see savings of about $35 per year
• A $5,000 annual premium may see savings of about $50 per year

The 1% charge applied to property insurance policies across the state, while FIGA addressed financial obligations linked to insurer insolvencies.

Purpose of the Emergency Assessment

The emergency assessment supported bond repayments issued after a wave of insurer insolvencies. Those failures left unpaid claims and required refunds of unearned premiums to policyholders.

FIGA operates as a financial safety net when property and casualty insurers become insolvent. The organization helps cover certain obligations to policyholders when an insurer cannot meet its financial responsibilities.

Statements From State Officials

Florida Chief Financial Officer Blaise Ingoglia said the decision represents a positive development for policyholders.

“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 also commented on the decision. He said the early end of the assessment reflects changes in the state’s insurance market after legislative reforms 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.

Role of the Florida Insurance Guaranty Association

The Florida Legislature created the Florida Insurance Guaranty Association in 1970. The organization protects policyholders who have claims when a property and casualty insurer becomes insolvent.

FIGA funding comes from several sources, including remaining assets from failed insurers, reinsurance recoveries, and assessments applied to insurance policies throughout the state.