Property owners have spent years dealing with property insurance increases, and another one is on its way.  Last week, state insurance regulators signed a plan that will tack on a 1% emergency “assessment” to property insurance to deal with issues caused by several large carriers leaving the state of Florida.

 

Insurance Commissioner Mike Yaworsky issued an order that approved a request by the Florida Insurance Guaranty Association (FIGA) to collect a 1 percent emergency “assessment” to cover costs of property claims. According to the order, insurers will collect the assessments from policyholders starting in October 2023 and send the money to the FIGA, a nonprofit agency created to handle claims for homeowners whose private insurers became insolvent.

 

Since early 2022, seven property insurers have been deemed insolvent. “The emergency assessment is necessary to secure funds for the payment of covered claims, to pay the reasonable costs to administer such claims, including claims resulting from insurance companies that have become insolvent or may become insolvent as a result of losses incurred due to hurricanes, including but not limited to Hurricanes Irma, Michael and Ian, and to secure bonds issued to generate revenues to pay claims,” FIGA Executive Director Corey Neal wrote in an April 4 letter to Insurance Commissioner Mike Yaworsky.

 

Under a plan approved last week by regulators, FIGA is borrowing $150 million in short-term financing to help pay claims. It then will issue up to $750 million in revenue bonds to pay off the short-term financing and to pay remaining claims. Money from the assessments will then be used to pay off the bonds. The FIGA website said the 1 percent assessment will continue until the “bonds have been paid in full.”

 

If you are engaged in a property damage dispute with your insurance company, let the experienced Florida Property Damage Attorneys at The Consumer Law Office (CLO) help you receive the maximum property damage compensation you are entitled to under your insurance policy.

 

Contact CLO Today 305-940-0924 for a FREE Comprehensive Property Damage assessment and consultation. Visit https://consumerlawoffice.com/

 

 

At CLO, there are NO upfront FEES, and we only get paid when you get paid by your insurance company.

 

Contact CLO Today! 305-940-0924

and ask for Attorney Mordechai Breier

 

CLO is a client-centric law firm committed to delivering excellent customer service.