The hurricane tax on property-insurance and auto-insurance policy will end Jan 1, 2015.
To cover claims paid for the 2004 and 2005 hurricane seasons, the state of Florida added an extra charge on property-insurance and auto-insurance. The Office of Insurance Regulation recently issued orders which would force insurance companies to move up the end of a 1.3% emergency assessment for the Florida Hurricane Catastrophe Fund by 18 months.
The emergency assessment totaled $2.9 billion, between $250 million and $500 million a year, and was used to reimburse insurance companies for claims resulting from the eight different hurricanes that hit Florida during the 2004 and 2005 hurricane seasons, which was the last time a hurricane directly hit the state of Florida.
The end date was originally set for July 1, 2016, but the Cat Fund has received more money than expected as a result of an increase in statewide policies and currently has around $13 billion, with the ability to raise another $4 billion.
With the Florida Hurricane Catastrophe Fund in good shape for this year’s hurricane season, Florida residents will soon see the extra tax on their property-insurance and auto-insurance come to an early end.