Fla. insurance fund stronger now for storm season

Published On: May 15 2013 03:04:56 PM EDT
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Florida is heading into storm season with some good news.

A state-created fund that backs up private insurers in Florida appears to be in the best financial shape it has been during its 20 years of existence.

New projections show that the Florida Hurricane Catastrophe Fund should have nearly $12 billion available for the upcoming hurricane season that starts on June 1.
An advisory panel for the fund will be given new estimates Thursday from Wall Street firms. Those estimates show that the fund should be able borrow enough money to cover all of its claims.

The financial health of the fund is important because the state can place a surcharge on most insurance policies if the "Cat Fund" runs out of money. Critics have called this a "hurricane tax."