Live Insurance News

Homeowners insurance could rise due to hurricane fund bill

March 2, 2013March 2, 2013 G. Turner

A proposal to decrease the size of the fund could make it more expensive for Florida property owners. A new bill in the state of Florida could have homeowners insurance customers in the state paying more for their coverage as it aims to make the hurricane fund smaller than it currently is. The bill is geared toward shrinking the size of the Florida Hurricane Catastrophe Fund. Florida’s catastrophe fund has been an important source of cash for making claims payments in the state following severe disasters. Should this bill pass,…

Florida Catastrophe Fund may be out of money

October 9, 2012 S.Vagus

Florida Catastrophe Fund facing serious financial troubles It is no secret that Florida is prone to hurricanes and flooding disasters. This is one of the reasons many property insurers have chosen not to offer coverage in some parts of the state. In 2010 and 2011, Florida was pummeled by powerful storms that caused widespread damage to homes and businesses. Because many insurers were not liable to pay claims associated with damage they do not cover, consumers had to turn to the Florida Catastrophe Fund. Now, information is coming to light…

A.M. Best to re-evaluate Florida insurance companies

June 5, 2012 Nordstrom

Rating revisions due to financial troubles with state’s Cat Fund Florida home insurers could soon be seeing revisions made to their ratings as A.M. Best, one of the largest rating firms in the world, announces that it will be reviewing the state’s insurance companies due to the financial troubles of the Florida Hurricane Catastrophe Fund. The Cat Fund, as it is called, is meant to provide insurance companies with $17 billion in reinsurance coverage each hurricane season. With two consecutive years of powerful natural disasters behind it, the Cat Fund…

Advisory panel warns that Florida may not be able to handle an active hurricane season

May 16, 2012May 22, 2012 S.Vagus

Florida’s Cat Fund facing financial woes This year’s Atlantic hurricane season is scheduled to begin on June 1. The season has yet to begin but has been the subject of speculation throughout the insurance industry. The past two years have played host to turbulent seasons, one of which caused significant damage in the eastern U.S. Some predictions hold that this year’s season may be mild, but Florida may not be able to withstand a hit from a strong storm. The Florida Hurricane Catastrophe Fund (Cat Fund), a state-run service that…

State requires fast action to strengthen the Florida Hurricane Catastrophe Fund

February 23, 2012May 5, 2013

The 2012 Florida Legislature is rapidly approaching the end of its session, and the lawmakers there have yet to decide on a path for the reform of the Florida Hurricane Catastrophe Fund (nicknamed the “Cat Fund”), without which, the state will be left at a high degree of risk. Without arranging the Cat Fund before the end of session, all it would take is one sizeable hurricane to rip a tremendous chunk out of the state finances, as hundreds of thousands, if not millions of legitimate claims are made, but…