Florida Hurricane Fund is Stocked & Ready for Storm Season
Florida’s continued lucky streak when it comes to dodging hurricanes is helping a key state fund reach its best financial shape ever in the two decades it has been in place. The state-created fund known as the Florida Hurricane Catastrophe Fund should have $17.4 billion available for the Atlantic hurricane season that starts June 1. This marks the first time ever that the fund has more money than it would need to pay out if storms racked the state.
The financial health of the account nicknamed the “Cat Fund” is important to Floridians regardless of where they live. The state can impose a surcharge on most insurance policies –including auto insurance policies – to replenish the fund if it runs out of money. Some critics have called the surcharge a “hurricane tax.”
The fund was created after Hurricane Andrew ravaged a densely populated area of South Florida in 1992. It offers insurance companies backup coverage at prices usually lower than those in the private market. It was designed to help keep private insurers from leaving Florida. Every company selling homeowners insurance in the state is required to purchase coverage which it can tap into after insurers reach a certain level of damages.
The main reason the fund balance has grown is because Florida hasn’t been directly hit by a hurricane since Wilma lumbered across the state 11 years ago.
BB Insurance Marketing is a full-service insurance agency located in South Florida that specializes in business, personal and benefits insurance. Childcare, gas stations, pest control and restaurants are just a few of the niche markets we work in. BBIMI’s insurance expertise extends all across the state, so we’ve got you covered with a quality policy you can depend on!