Hurricane season starts in just a few days on June 1, and Floridians are going into it with good news.
Recent projections show that the Florida Hurricane Catastrophe Fund, the state-created fund which backs up Florida private insurers, should have almost $13 billion available for the Atlantic hurricane season, an indication that it is capable of withstanding a devastating storm this year.
“We are very strong at this point and very capable of handling a large event,” said Jack Nicholson, chief operating officer for the fund.
An advisory council for the fund heard from Wall Street Firms on how much the fund would have to borrow in the case that Florida was hit by a big storm, and the panel approved estimates which show that the fund should be able to borrow more than $8 billion, twice what would be needed to pay potential claims.
It is important that the financial health of the fund is strong because regardless of where a Floridian lives, the state can place a surcharge on most insurance policies to replenish the “Cat Fund” if it runs out of money. This is sometimes known as a “hurricane tax.” The money in the fund has grown because the last hurricane to hit Florida was Wilma back in 2005, but Florida still could be in trouble if hit by multiple large storms over a two-year period.
People living in Florida are no stranger to the damage that hurricanes can cause, and while the state hasn’t been hit directly by a high category hurricane in quite a few years, it is still at risk. We all saw the devastating effects that both Hurricane Katrina and Hurricane Sandy had on New Orleans and the Northeast, and it’s important to be prepared to deal with the same.
For more information on how Avante Insurance can help make sure your protected, call us today at 305-648-7070.