2012 Hurricane Season and Your Florida Insurance

Some uncomforting news for Floridians with hurricane season just a few months away…

According to the Insurance Journal website, Florida’s catastrophe fund doesn’t have enough money to pay out for the damage caused by a storm. “The fund was created in late 1993, 15 months after Hurricane Andrew, a Category 5 storm with 150 mph winds, nearly destroyed the town of Homestead, south of Miami. It caused widespread damage resulting in $57 billion in losses for property insurance companies.” However, if a storm of that caliber was to hit this coming hurricane season, Florida would not have the money to cover the damage.

“Don’t create a state organization that says they’re selling a product that they’re really not selling. To believe that you can go borrow money after a significant disaster is not realistic. We’ve got to live in reality,” Gov Rick Scott said.

State lawmakers have been debating different ways to solve this problem. However, because of election year, many are hesitant to make a final decision. They have been hesitant to significantly raise insurance premiums, since many would not like this option. Unfortunately, if a storm was to hit, insured’s premiums would rise significantly in order for the state to receive enough funds to pay for the damage. Even though Florida has been fortunate that it has made it six years without a hurricane, insurance companies are forced to slightly raise premiums to make up for lack of funds. Without another option, we will have to hope a huge storm doesn’t come through before they finally propose a plausible solution.

“Our luck is eventually going to run out,” longtime fund head Jack Nicholson testified at a House Insurance and Banking subcommittee meeting recently. “You can’t continue to roll the dice and be lucky every time.”

Make sure to contact Westgate-Jones Insurance Agency if you have any questions about your Florida home insurance and your hurricane coverage. 

To read the Insurance Journal’s article, “Florida Lawmakers Still Balk at Raising Homeowners’ Premiums for Cat Fund” by Brent Kallestad,click


 Westgate-Jones Insurance Agency ~ 352-787-7548 ~ www.westgatejonesinsurance.com