Risk of 'Hurricane Tax' lower for people in...

Florida homeowners are breathing easier as Citizens Insurance is no longer the state's largest home insurance provider, significantly reducing the risk of a costly hurricane tax for people.

In the months following Hurricane Ian's devastation, Florida's insurer of last resort saw its policy count swell to 1.4 million customers, making it vulnerable and prompting a Senate Budget Committee investigation into its finances. Every consumer in the state faced the possibility of being hit with a hurricane tax.

Now, the situation has dramatically improved. This month, Citizens announced it has shed more than 900,000 policies, bringing its numbers down to what experts consider a manageable level.

"We're not concerned about (a hurricane surcharge) now because it's come down to a very manageable level," said Mark Friedlander of the Insurance Information Institute.

The reduction has been beneficial for many homeowners. A Citizens spokesperson revealed that in nearly half the cases, homeowners actually saved money when switching to private insurers.

"About 40% of those policies, these takeout premium was actually less than what the citizens premium was. Consumers are now starting to see more choices in the market," said Citizens spokesperson Michael Peltier.

Industry analysts point to legislation passed following Hurricane Ian that cut down on assignment of benefits fraud and litigation as a key factor in the market's improvement.

The positive changes are reflected in premium costs. Florida homeowners are averaging just a 1% increase in premiums this year, marking the second consecutive year with the lowest rate changes in the country.

"We look at data across the country, there's no other state seeing this type of relief," Friedlander said.

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