MILLIONS of Americans in one state have braced for higher emergency assessment rates.
Florida insurers agreed to a new home insurance fee that most state residents must pay.
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The surcharge is necessary to secure funds of insolvent insurance claims, according to Florida Insurance Guaranty Association (FIGA).
Florida’s Insurance Commissioner, Mike Yaworsky, issued an order to approve the rate change.
Yaworsky, nominated by Florida Governor and Presidential hopeful Ron DeSantis, approved the measure’s October 2023 start time.
Policyholders will be on the hook for a one percent increase in rates, according to the new rules.
So, a policyholder with $4,000 of insurance can expect to pay an extra $40 a year.
POLICY PROMPTING
Florida residents are paying more after the state was struck by several natural disasters.
FIGA’s Executive Director Corey Neal wrote a letter advancing the plan, saying it was necessary because of disasters “including but not limited to Hurricanes Irma, Michael, and Ian.”
Hurricane Ian cost upwards of $84billion to the state, according to News-Press.
Since 2022, seven property insurers have become insolvent after the billions of dollars spent insuring the state.
A company becomes insolvent when their financial obligations exceed the money it is able to pay.
“What you’re really seeing here is the mechanism of the state insurance industry working properly the way it should, should a carrier become insolvent and unable to pay their claims,” Sean Way, an insurance professional in Jacksonville, Florida, told News4Jax.
“We always talk with our clients about the fact that their insurance is backed by the Florida Insurance Guaranty Association. That’s what has happened here.”
CRITICISMS
Floridian homeowners and renters have criticized the state’s increasing prices.
“I pay $1,200 in rent. It has gone up every year the last three or four years,” James McKee, an area renter, told the station.
“It’s ridiculous.”
The U.S. Sun reports on ways people can save on insurance – here is how Florida attempted to help home insurance with a storm protection grant.
Also, here is a surcharge at a popular home improvement store.
Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.