TALLAHASSEE, Florida — The state-created fund that backs up private insurers in Florida is in a “strong position” ahead of this year’s hurricane season — aided in part by last year’s break in big storms and a reduction in losses associated with previous hurricanes.
Details: The Florida Hurricane Catastrophe Fund, which offers insurance companies reinsurance at prices generally lower than those in the private market, is legally obligated to provide up to $17 billion in coverage.
On Thursday, the fund’s advisory council approved a new report that spells out the financial health of the fund — and more importantly how much money would be needed in case the state is pummeled by a damaging storm or a series of hurricanes.
The status of the account, nicknamed the “Cat Fund,” is important to Floridians regardless of where they live. The state can impose an assessment that critics call a “hurricane tax” on most insurance policies — including auto insurance policies — to replenish the fund if it runs out of money.
