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Florida insurance costs set to rise due to failed insurers

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Posted at 12:54 PM, Mar 06, 2022
and last updated 2022-03-06 12:54:58-05

FORT LAUDERDALE, Fla. (AP) — 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 the Florida Insurance Guaranty Association approved a 1.3% assessment on the premium cost of all policies sold in Florida.

The Florida Insurance Guaranty Association was created by the state Legislature in 1970 to handle claims of insolvent property and casualty companies.

Oftentimes, when an insurance company fails, another company will take over its policies through the end of its terms. The costs of any claims and litigation filed before the takeover are paid by the association.