Fla. insurance fund could still short of needs

Published On: Oct 08 2012 02:35:34 PM EDT
TALLAHASSEE, Fla. -

Florida still may not have enough money to pay off hurricane insurance claims if a big storm hits.

New claims paying estimates drawn up for a state advisory panel conclude that the state could fall $1.5 billion short of what's needed to cover its obligations.

The panel will review and approve the estimates Tuesday, which are similar to ones drawn up earlier this year.

Florida created a backstop for insurers after Hurricane Andrew slammed into the state nearly 20 years ago. But the fund has to borrow money if claims exceed its cash reserves.

The new estimates conclude the state could likely borrow up to $7 billion after a hurricane. The $7 billion would be paid back with a surcharge placed on every property and auto insurance policy.

Comments

The views expressed below are not those of News4Jax or its affiliated companies. By clicking on "Post," you acknowledge that you have read the Terms of Service and your comment is in compliance with such terms. Readers, please help keep this discussion respectful and on topic by flagging comments that are offensive or inappropriate (hover over the commenter's name and you'll see the flag option appear on right side of that line). And remember, respect goes both ways: Tolerance of others' opinions is important in a free discourse. If you're easily offended by strong opinions, you might skip reading comments entirely.

blog comments powered by Disqus