Florida Home Insurance Shortfall not a Priority When Even Auto Makers are Begging

rates, the fund helped to make homeowners insurance available and affordable for many years.

That all changed after the Florida hurricanes of 2004 and 2005 when Florida home insurance became overpriced and hard to find again.

The Florida legislature responded to the Florida home insurance crisis by voting in 2007 to expand the reinsurance sold by the Cat Fund by billion – raising its total risk to a total of billion. Florida home insurance companies were required to purchase this additional reinsurance from the state and to pass along the savings realized on reinsurance to home owners.

As a Florida homeowner, you didn’t get the rate reductions that this law was supposed to provide. Your rate cuts never came close to the 24% predicted when the legislation passed. And to make things worse, the Florida Cat Fund took on an additional billion in risk.

Now the Florida Catastrophe Fund has told us that the frozen bond markets won’t be an acceptable source to raise the cash it needs to meet its commitments to the insurance companies after a major Florida hurricane. It recently estimated that it could pay out billion over the next twelve months – That’s billion less than the billion it is on the hook to pay!

What does all of this mean to you as a Florida home insurance consumer?

You didn’t get the rate relief you expected and your state took on financial obligations that it has no hope of