Florida Approves $224 Million Plan to Bolster State Catastrophe Fund

Florida residents might see an increase in property insurance rates because of a plan to bolster the Florida Hurricane Catastrophe Fund.

State officials last week approved a plan to spend $224 million so that the state can access the $4 billion it might need if a major hurricane hits Florida in the coming months. Under the proposal that was approved, property insurance rates might increase 2.5 percent.

Officials were concerned that if the Florida was hit with a major hurricane, the Florida Hurricane Catastrophe Fund — known as the CAT fund — could have difficulty borrowing the money needed to pay insurers.

Attorney General Bill McCollum and Chief Financial Officer Alex Sink each voted for the plan, but both said they didn’t like its terms.

Latest Comments

• July 8, 2008 at 10:14 am

  Debby says:

  Here we go again. How are the american people suppose to live on a fixed income if the government doesn't work "FOR THE PEOPLE". Don't they realize we're all hurting. I'm not ... read more
• July 7, 2008 at 4:10 am

  Good Hands says:

  The scary thing about this is that the $224 million is basically just covering the 'closing costs of the loan' to gain entree to reinsurance. They are closer to a solution. Li... read more
• July 7, 2008 at 1:45 am

  Robert says:

  Gill Fin - Love the Dire Straits quote. So true!