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

paying.

You are at risk if Florida experiences a major hurricane in the next year. Once the losses of your Florida home insurance company exceed certain levels, your company will ask the Florida Cat Fund to reimburse them in order to pay your claim. Since the Florida Cat Fund is short on cash, you might have a long delay in getting your claim paid.

The promise to pay your Florida home insurance claim has never been more at risk than it is today.

Now that you know that the Florida Hurricane Catastrophe Fund will not meet its obligations, let’s examine the National Catastrophe Fund idea that Florida has been bring up in Washington for years. This National Cat fund would offer an additional layer of loss protection above and beyond the obligations of the Florida Cat Fund.

The theory is that a National Catastrophe Fund would be funded in part by insurance premiums paid by policyholders in states that are part of the fund. A National Cat Fund would be a separate fund that would earn interest and grow during the years when there aren’t any claims.

Supporters claim that no taxpayer money would be needed to sustain a National Cat Fund. Storm history tells us there would be times that federal tax dollars would have to be used to offset major losses.

And everyone knows that the federal government can’t keep its funds separate. Just ask someone in Washington to show you the billions that are supposed to be in the