ORLANDO, Fla. — Florida homeowners will have to pay an extra 1% for their insurance premiums starting in October. 

The state issued an order last week and was approved by the Florida Insurance Association to collect the emergency assessment. 

The rate increase will be used to cover insurance claims from companies that became insolvent following last year’s hurricanes.

Florida’s Insurance Guaranty Association is handling hundreds of millions of dollars in claims.

Real estate agent Rick Brown, of the Brown Home Group agency, says the 1% rate hike will probably not do much to slow down home sales.

“The market is still strong, and I don’t expect this to do anything to new home sales,” said Brown.

He said the age of a property is something to consider when it comes to homeowners insurance rates.

“The age of the home is going to be a big factor to try and reduce your insurance fees," he said. "And offsetting that 1% hike that’s going to occur.”

This is not the first time the FIGA has needed a rate hike.

A rate hike of 0.7% assessment was collected in 2022, but is expected to end on June 30.

Brown believes even more insurance demands will be placed on homeowners by insurance companies soon.

“So we understand what’s potentially going to happen is insurance companies are going to make it a requirement that you at least have five years life left on your roof in order to file for insurance and homeowners," he said.

Brown said that those who don’t meet those roof requirements will likely not be able to obtain insurance.