Florida's Insurance Fund Remains Strong
TALLAHASSEE (CBSMiami/AP) — A Florida fund meant to help private insurers pay out claims after a hurricane remains strong.
New estimates approved Tuesday show that the Florida Hurricane Catastrophe Fund should have nearly $13 billion available. Wall Street firms estimate that the fund could also borrow an additional $8.3 billion if needed.
Those totals exceed the amount the "Cat Fund" would need.
The financial health of the state-created fund is important to Floridians because the state can impose a surcharge on most insurance policies to replenish it if it runs out of money. Some critics have called the surcharge a "hurricane tax."
The amount of money in the fund has grown because Florida hasn't been hit by a hurricane since Wilma in 2005.
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