Florida Property Insurance Costs to Increase by 1% Due to Surcharge

Florida property insurance policyholders will soon see an additional 1% surcharge on their premiums. This surcharge is intended to help cover the cost of the state’s Hurricane Catastrophe Fund, which serves as a backup for insurers if a major hurricane strikes. The fund has been depleted due to the frequency and severity of recent storms, and the surcharge is expected to generate $300 million annually. The surcharge will be effective starting in October and is expected to impact approximately 6 million policyholders in the state. While some policyholders may see a slight increase in their premiums, officials say the surcharge is necessary to ensure the stability of the insurance market in Florida. This surcharge is expected to continue until the “bonds have been paid in full.”