The Florida Citizens' Board of Governors voted unanimously yesterday to end a 1% surcharge imposed on most Florida homeowners' policies two years earlier than planned, reports The Miami Herald. Previously scheduled to end on June 30, 2017, the assessment will now end on July 1, 2015.
The special emergency assessment was added to property insurance bills in Florida in 2007 to pay off storm repair debt following Hurricane Wilma in 2005. The storm created a $1.7 billion deficit, $623 million of which was picked up by the state. The 1% (originally 1.4%) surcharge was established to recoup $887 million, says the Herald. The rest was paid by additional assessments on Citizens customers.
Jennifer Montero, CFO of Citizens, told the board the balance of the remaining debt on the bonds issued for the storm is expected to be paid off next year, says the Herald.
John Rollins, chief risk officer of Citizens, says these assessments can help reduce the overwhelming number of policies Citizens carries. According to Rollins, they should be an incentive for homeowneres to seek private coverage.
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