State lawmakers have components with their money played for many years, when it comes to addressing the issues of the Florida property insurance. But now recommended by many industry analysts over the odds turned against him after six years without a hurricane hits Florida. Insurance experts such as the Hurricane Catastrophe Fund Florida need more money and a review before a storm or series of them conforms to the state. Otherwise, consumers could pay huge premiums on insurance coverage and the state government got into financial difficulties left by decades, they say.
Despite these caveats, it seems the legislature before the end of its ninth annual meeting March of the trade, because all tracks are still raising insurance premiums, is not a popular decision, especially in an election year. However, any increase would be small compared to those in need when a disaster strikes before an update will be done.
The authorities have already given up a special $ 12 billion expansion of the Fund, when it became obvious it would not be able to fund and look forward to their capability to convene the recent obligation of $ 11.7 billion in question.
The Fund was established in late 1993, 15 months after Hurricane Andrew, a Category 5 storm with winds of 150 mph, approximately damaged the city of Homestead, south of Miami. This caused extensive damage at $ 57 billion to loss of property insurance, adjusted for inflation. I had a lot of companies leaving the state for fear of a repetition.
To stop the exodus, the government provides funds and insurance, reinsurance companies operated more cheaply - basically measures that help protect businesses from catastrophic losses. Currently, the fund would be responsible for about 18 billion dollars and has about $ 7 billion in cash reserves. This means that the state would have $ 11 billion by selling bonds at high interest rates likely to borrow in an uncertain market, in order to cover those losses. For those who pay the state would force an extra on all automobile and property insurance, the calculation of the average consumer hundreds of dollars per year.
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