May 17, 2024, WTVT-TV Fox 13 News, Tampa – “If they needed to, where we needed that money used for other purposes to either harden homes or lower rates. But that probably would not be a good use of those funds,” said former Florida Deputy Insurance Commissioner Lisa Miller. She says the best use of the state funds may be to let insurance companies buy cheaper reinsurance from the Cat Fund and pass those savings along to households. (Original story location, including video version: https://www.fox13news.com/video/1457931)
TAMPA, Fla. – Hurricane season starts in just 15 days, and many of us know just how damaging the storms can be. But with the current property insurance crisis, many are paying a lot of money for coverage. There is a state hurricane fund that could lower rates but the question is will the state choose to use it?
It’s commonly referred to as the Cat Fund or catastrophe fund, and it’s meant to backup private insurance companies ahead of hurricane season. But it could help ease other problems, too. The fund, established after Hurricane Andrew, is said to be strong and healthy by experts this year, with more than $10 billion in the bank even after last year’s bad storm season. And although it’s meant to help stabilize the Florida insurance market, it’s rekindled debate about using funds to help lower insurance rates.
“If they needed to, where we needed that money used for other purposes to either harden homes or lower rates. But that probably would not be a good use of those funds,” said former Florida Deputy Insurance Commissioner Lisa Miller.
She says the best use of the state funds may be to let insurance companies buy cheaper reinsurance from the Cat Fund and pass those savings along to households. But people in Tampa Bay are in dire need of insurance rate decreases, some even moving to higher ground to avoid flood zones.
“When we first built the house, we always had State Farm in our houses in the past and we weren’t able to get State Farm to insure us at the time and none of the major insurance companies,” said Tampa resident Jeff Motto. “I think historical damage in Florida and their losses in the area are in underwriting. I heard that before but I didn’t really think about it when we started building the house to be honest with you.”
State legislators have been working to get rate decreases finalized but now experts say the Cat Fund borrowing limit exceeds what it would even need for a bad hurricane. Still, there are things you can do to be more prepared.
“Talk to your insurance agent if you have high premiums about reducing your premium in certain other areas,” suggests Miller. “For example, if you want to increase your deductible, it will help you save on your insurance premiums.”
She also advises people to talk to an agent about finding discounts with hurricane season just two weeks away.
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