Florida Homeowners: A Hidden Surcharge on Your Insurance Bill Is Going Away — Two Years Early, But at What Cost?
If you own a home or business in Florida, there is a quiet line item buried in your insurance bill that has been costing you money since 2023. It is called the FIGA emergency assessment — a 1% surcharge added to virtually every property and casualty insurance policy in the state. And as of October 1, 2026, it is going away.
The Florida Insurance Guaranty Association (FIGA) announced in February 2026 that it is ending the surcharge two full years ahead of schedule. The reason? A combination of a quiet 2025 hurricane season and no new insurer insolvencies.
For the average Florida homeowner, this translates to modest savings. But the bigger story is what this milestone reveals about where Florida’s insurance market has been, and the serious risks that still remain for homeowners filing claims today.
What Is FIGA and Why Did It Start Charging You Extra?
FIGA was created by Florida lawmakers back in 1970 for one specific purpose: to act as a safety net for policyholders left stranded when their insurance company goes bankrupt. When an insurer collapses, FIGA steps in to pay outstanding claims using whatever assets remain from the failed company — and when those run out, it assesses all other Florida policyholders to cover the gap.
Between 2021 and 2023, Florida’s insurance market experienced a near-collapse. Ten property insurers went insolvent in a historically short period, leaving thousands of homeowners with unpaid claims and no coverage. To fund the massive surge in obligations, FIGA issued bonds and levied a series of emergency assessments on Florida policyholders:
- 0.7% assessment — first round of emergency funding
- 1.3% assessment — as more insurers failed
- 0.7% assessment — continued stabilization efforts
- 1.0% assessment (March 2023) — the largest and most recent, to cover bond obligations
In total, FIGA has paid out more than $2.1 billion in claims to Florida policyholders over the last five years an extraordinary figure that reflects just how badly the state’s insurance ecosystem deteriorated.
What Does This Mean for Your Wallet?
FIGA estimates that ending the 1% assessment two years early will save Florida policyholders up to $650 million statewide. On an individual level, if your annual homeowner’s insurance premium is around the state average of approximately $3,066, you could expect to save roughly $31 per year.
⚠ IMPORTANT
The assessment officially ends October 1, 2026. If you renew your policy before that date, check whether the surcharge is still listed. If your insurer continues charging it after October 1, you should push back — and if necessary, seek legal guidance.
At What Cost to Florida Homeowners
Florida’s insurance market didn’t stabilize on its own. The turnaround was driven largely by sweeping legislative reforms passed in late 2022 and 2023 – changes that were deeply controversial at the time and remain so today.
The two biggest changes were:
Elimination of One-Way Attorney Fees
Under the old system, if a homeowner sued their insurer and won, the insurer had to pay the homeowner’s attorney fees. This gave policyholders meaningful leverage to fight wrongful denials. The 2022 reforms eliminated this provision — a significant blow to homeowners trying to hold insurers accountable without the resources for expensive litigation.
Ban on Assignment-of-Benefits (AOB) Agreements
Assignment-of-benefits agreements allowed contractors to file insurance claims directly on a homeowner’s behalf. The legislature banned AOBs to stem what it called runaway litigation. Whether the problem was truly the system or insurer bad faith remains a hotly debated question.
The insurance industry credits these reforms with “stabilizing the market” and enabling FIGA’s early end to the assessment. Consumer advocates argue the reforms came at the expense of homeowners’ ability to fight back against unfair claim denials — and that the savings flowing to insurers haven’t been fully passed on to policyholders.
The Market Is Improving — But Homeowners Still Face Real Risks
Make no mistake: Florida’s insurance market is in better shape than it was in 2021 or 2022. But “better” is a relative term. Florida still has some of the highest homeowner insurance rates in the country, Citizens Property Insurance remains heavily loaded, and a single active hurricane season could reverse much of the progress made.
More critically for homeowners: the legislative reforms that helped “stabilize the market” also made it harder for you to fight back when your insurer wrongfully delays, underpays, or denies your claim. Claims disputes haven’t disappeared — they have simply become harder to litigate for the average homeowner without legal help.
Watch out for these common insurer tactics:
- Lowball settlement offers that don’t cover the true cost of repairs
- Unreasonable delays in acknowledging or paying claims
- Denials based on claimed “pre-existing conditions” or “wear and tear”
- Disputes over the cause of damage (wind vs. water vs. flood)
- Sudden policy cancellations or non-renewals after a claim is filed
If any of these sound familiar, you are not alone — and you may have legal options even in the current post-reform environment.
What Florida Homeowners Should Do Right Now
- Review your next insurance renewal notice carefully — the 1% FIGA assessment should disappear from your bill on or after October 1, 2026.
- Don’t accept a lowball claim settlement. Get an independent estimate before signing anything.
- Document everything. Photos, receipts, contractor reports, and all written communication with your insurer can be critical in a dispute.
- Know your deadlines. Florida law imposes strict time limits on filing insurance claims and lawsuits — missing them can permanently bar you from recovery.
- Consult an attorney if your claim has been denied or underpaid. Even in the post-reform environment, legal remedies remain available to homeowners with valid claims.
Has Your Florida Insurance Claim Been Denied, Delayed, or Underpaid?
Florida’s insurance market may be stabilizing for insurers — but that doesn’t mean your claim will be handled fairly. Insurance companies have teams of adjusters and lawyers working to minimize what they pay you. You deserve the same level of advocacy.
Our firm fights for Florida homeowners whose claims have been wrongfully denied, delayed, or lowballed — including hurricane damage, roof claims, water damage, and disputes following insurer insolvencies. We know how the system works, and we know how to hold insurers accountable.
