Bonita Springs News

ARTICLE

Date ArticleType
10/9/2014 General

Citizens Property Insurance to End Assessment in 2015

www.FLChamber.com

Today, the Citizens Property Insurance (Citizens) Board of Governors voted to end the one percent assessment on all insurance policies, starting July 1, 2015, two years prior to the expected end date. This follows an announcement in June from the State Board of Administration that the Florida Hurricane Catastrophe (CAT) Fund met its debt obligations and can end its assessments early. 

The assessments from both Citizens and the CAT Fund resulted from deficits during 2004 and 2005, when six named storms impacted Florida’s homeowners and businesses. This deficit has been borne on most insurance policies in the form of a “hurricane tax”, paid by automobile owners, homeowners, churches, charities and businesses. Roughly $2 billion in assessments were paid by Citizens policyholders and non-Citizens policyholders to make up for the Citizens Property Insurance deficit from these two seasons.

While this is great news temporarily for Florida’s policyholders, Florida still relies too heavily on post-storm assessments to make up for deficiencies in both the state-run Citizens Property Insurance and the CAT Fund. The Florida Chamber has long advocated for policies that would ensure others, such as businesses, are not forced to pay a “hurricane tax” years after a storm

Mark Your Calendar Now:
With a little over two months remaining in the hurricane season, Florida has been lucky that there has not been a major storm since the 2004 and 2005 hurricane season. Save the date to join Florida’s insurance leaders at the Florida Chamber Insurance Summit on January 26-27, 2015 to discuss future insurance policies.