Quick answer: Florida’s 1% emergency assessment on property insurance policies ends on October 1, 2026, two years ahead of the original October 1, 2028 schedule. Policies renewing through September 30, 2026 carry the final charge. Commercial property owners should confirm at renewal that the line item is gone and use the broader market stabilization to review their coverage and pricing.
What Is the Florida 1% Insurance Assessment?
The charge was an emergency assessment, a 1% surcharge applied to Florida property insurance policies beginning October 1, 2023. It was created to repay bonds issued by the Florida Insurance Guaranty Association (FIGA) after several property insurers became insolvent. FIGA steps in to pay covered claims when an insurer fails, and assessments on policyholders help fund that obligation.
Why Is It Ending Two Years Early?
According to Florida Realtors’ report, FIGA voted to end the assessment once enough funds had accumulated. Florida Insurance Commissioner Mike Yaworsky credited the Legislature’s 2022 reforms and said the insurance market has stabilized and is producing savings for consumers. Statewide, the early end is expected to save roughly $650 million over the two years.
How Much Will Florida Businesses Save?
Because the assessment is 1% of premium, the savings scale with the size of the policy. Using the figures reported by Florida Realtors, a $2,000 annual premium saves about $20 per year and a $5,000 premium saves about $50. For a commercial property program, the math is simple: a $40,000 annual property premium would see roughly $400 less per year, and a $100,000 program roughly $1,000.
- Policies renewing on or before September 30, 2026 still include the 1% assessment.
- Policies renewing on or after October 1, 2026 should not include it.
- The assessment applies to property policies, so check each property line on your program.
The Bigger Story: A Stabilizing Florida Market
The assessment ending is a symptom of a broader shift. The Florida Chamber of Commerce credits Senate Bill 2-A (December 2022) and House Bill 837 (March 2023) with curbing litigation: in 2021 Florida accounted for 6.9% of national property claims but more than 76% of property insurance lawsuits. Eleven new insurers have entered the market since the reforms. For our view on where rates and capacity are heading, read our latest on Florida commercial insurance trends in 2026.
5-Step Renewal Checklist for Florida Business Owners
- Check your declarations page. Look for the emergency assessment line and confirm it is removed on renewals dated October 1, 2026 or later.
- Re-market your property coverage. More carriers means more options; ask your broker for competing quotes.
- Verify values. Rebuild costs have moved; underinsurance is the most common cause of painful property claims.
- Review hurricane and flood terms. Compare wind deductibles, named storm percentages, and flood limits.
- Coordinate the whole program. Property savings are a good moment to review liability, auto, and workers’ compensation too.
Frequently Asked Questions
When does Florida’s 1% insurance assessment end?
It ends October 1, 2026. Policies renewing through September 30, 2026 carry the final assessment.
Does the assessment apply to commercial property insurance?
It applies to Florida property insurance policies, which includes businesses as well as homeowners. Confirm line by line with your agent.
Will my premium drop automatically?
Only the 1% surcharge is removed. Your base premium still depends on your property, location, loss history, and market conditions, so renewal pricing can move either way.
What was the assessment for?
It repaid bonds issued by the Florida Insurance Guaranty Association after multiple insurer insolvencies.
Talk to a Florida Commercial Insurance Advisor
Highlight Risk Services helps Florida businesses read their renewals, close coverage gaps, and shop the market. Contact us for a renewal review, or see what we do.
This article is for general information and is not legal or insurance advice. Coverage depends on your specific policy.