As a blogger for Insurance School Florida, it’s  relieving  to see that the Florida Hurricane Catastrophic Fund is at healthy levels.   There is enough  enough money and bonding  options  to pay off $25 billion in  damages  .

Story brought to you by: Insurance License Florida and School Insurance Florida

The Catastrophic Fund has  Seventeen  billion  on hand  without the need for additional bonding.  Of that  Seventeen  ,  seven  Billion is from insurers.   When hurricane losses happen  the first 7 Billion in damages would  Fall at the insurer’s feet  insurers.  That is called “industry retention.”  If an insurer is hit hard past retention they are  eligible  to get  relief  from the Cat Fund.  

In addition to the  industry retention  , insurers pay a detuctible or co-pay for their Cat Fund coverage.  The  favorite  plan is  Ninety   percent  coverage and 10  percen  taken in losses by the insurer.

The Cat Fund does not cover commercial businesses.  It is for residential.  

Florida is long due for a hurricane now .  Here are some stats :

And the odds of  damages from a hurricane making landfall  are increased by having multiple hurricanes hit in  1 season like it did back in 2004 and 2005.

After the 2005 hurricane season, many were worried that there would be no insurance policies readily available in Florida’s future .  The government and Insurance Industry have  made it  that a Hurricane doesn’t spell financial disaster.

Rick Sabian

This entry was posted on Tuesday, May 25th, 2010 at 6:53 am and is filed under Credit, Credit Advice, Credit Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.