Florida homeowners will save $650M as insurance surcharges end early

What’s happening

A statewide insurance surcharge tied to past hurricane assessments is ending two years ahead of schedule, returning an estimated $650 million collectively to Florida homeowners. The surcharge had been added as a line item on most homeowners policies for several years.

Why this matters if you’re buying

This is good news in absolute terms, but it’s small relative to the broader Florida insurance picture. Two ways to think about it:

• It’s a real cost reduction. When you compare insurance quotes for the same home year over year, the disappearing surcharge will show up in your favor — typically a few dozen dollars to a few hundred dollars annually depending on the policy.
• It does not change the underlying premium trajectory. Base premiums in Florida have continued to climb because of reinsurance costs, the structural inspection backlog on older buildings, and the El Niño storm forecast. A $650M one-time return doesn’t undo billions in annual premium growth.

When you’re underwriting a Florida purchase, always model insurance at next year’s likely premium, not today’s. Ask your insurance agent for the renewal trajectory on the property’s last 3 years of coverage, and add a buffer.

Related FAQs

• Citizens insurance in Florida
• Flood insurance in Florida