In Florida there are three entities that may levy assessments due to residential
property insurance claims:
- Florida Hurricane Catastrophe Fund,
- Citizens Property Insurance Corporation (Citizens) and,
- the Florida Insurance Guaranty Association.
Regular assessments for a single year and emergency assessments for one or more
years are made as necessary to cure deficits and retire indebtedness. The calculator
will provide you with the amounts you may expect to be assessed.
How to Use the Calculator
- Select whether you are a Citizens policyholder, or whether your homeowners coverage
is through a private carrier.
- Input your annual premiums for homeowners coverage, automobile coverage, and business
coverage (these three types of coverage are all assessable).
- Click "Calculate."
DISCLAIMER: THIS ASSESSMENT CALCULATOR IS FOR GENERAL INFORMATION ONLY.
IT ASSISTS CONSUMERS IN UNDERSTANDING THE POTENTIAL ASSESSMENTS A FLORIDA
RESIDENT MAY BE SUBJECT TO IN THE EVENT OF A HURRICANE. These are estimates
only, based on reasonable actuarial assumptions that are expressed in the
attached actuarial report. Any change in the assumptions will affect the
displayed assessments. The three levels of hurricanes used provide a range
of potential assessments based on the severity of the hurricanes and the estimates
of the losses that could occur. There is no requirement that
assessments be spread over a 30-year period. Any assessment is in
addition to the insurance premium charged for insurance coverage. While
this calculator is offered to provide valuable information, it cannot determine
any individual's actual assessment. The assumptions used in the
methodology include the following:
- Average annual payment percentages assume financing is available for
30
years at a 6.5% annual interest rate to fund all assessments
including substantially higher first-year assessments for larger storms. It is assumed that some of this financing may be done by the
assessing entities and the balance will require financing by individual policyholders. Individual policyholders may experience significant
first year assessments that may require financing to be affordable.
- Homeowners premiums exclude federal flood. Business premiums exclude workers' compensation, federal flood, medical malpractice
and miscellaneous other premiums.
- Citizens homeowners assessments are averages for the three Citizens accounts: High Risk Account, Personal Lines Account
and Commercial Lines Account.
- The Florida Hurricane Catastrophe Fund will pay losses up to its theoretical bonding capacity of $27.18 billion for either a 1 in 100
year or a 1 in 250 year hurricane.
- Insurer insolvencies will be significant for a 1 in 250 year hurricane resulting in substantial assessments by the Florida Insurance
Guaranty Association.
- Hurricane losses have been estimated using averages of all five hurricane models approved by the Florida Commission on Hurricane Loss
Projection Methodology.
- You are encouraged to
review the report
for more detailed explanations of how these projections were generated.