NewsCovering Florida


Florida insurance costs set to rise due to failed insurers

Posted at 3:13 AM, Mar 07, 2022
and last updated 2022-03-07 03:14:05-05

FORT LAUDERDALE, Fla. — Florida homeowners are about to pay more in insurance premiums, and they have failed insurance companies to blame.

The South Florida Sun Sentinel reported Sunday that late last month the Florida Insurance Guaranty Association approved a 1.3% assessment on the premium cost of all policies sold in Florida. That not only includes homeowners insurance but aircraft, crops, flood and malpractice insurance policies.

The Florida Insurance Guaranty Association (FIGA) was created by the state Legislature in 1970 to handle claims of insolvent property and casualty companies. Often-times, when an insurance company fails, another company will take over its policies through the end of their terms. The costs of any claims and litigation filed before the takeover are paid by FIGA.

If the Florida Office of Insurance Regulation approves the assessment later this month, it will raise $190 million to cover of any claims or litigation for Orlando-based St. Johns Insurance Co., which went into receivership late last month. With more than 204,600 policies statewide as recently as 2019, it was one of the 10 largest insurers in Florida.