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.
Want to continue reading?
Become a Free PropertyCasualty360 Digital Reader
Your access to unlimited PropertyCasualty360 content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Breaking insurance news and analysis, on-site and via our newsletters and custom alerts
- Weekly Insurance Speak podcast featuring exclusive interviews with industry leaders
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical converage of the employee benefits and financial advisory markets on our other ALM sites, BenefitsPRO and ThinkAdvisor
Already have an account? Sign In Now
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
