The Florida Citizens' Board of Governors voted unanimouslyyesterday to end a 1% surcharge imposed on most Florida homeowners'policies two years earlier than planned, reports The Miami Herald. Previously scheduledto end on June 30, 2017, the assessment will now end on July 1,2015.
|The special emergency assessment was added to property insurancebills in Florida in 2007 to pay off storm repair debt followingHurricane 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 onCitizens customers.
|Jennifer Montero, CFO of Citizens, told the board the balance ofthe remaining debt on the bonds issued for the storm is expected tobe paid off next year, says the Herald.
|John Rollins, chief risk officer of Citizens, says theseassessments can help reduce the overwhelming number of policiesCitizens carries. According to Rollins, they should be an incentivefor homeowneres to seek private coverage.
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