The good news for Florida this hurricane season extends beyond the quiet storm activity. According to an October Miami Herald article, financial consultants suggest that the Florida Hurricane Catastrophe Fund (FHCF) is as strong as ever with $10 billion in cash on-hand. The FHCF will be able to cover its obligations this hurricane season after years of accruing value.
The FHCF was created after Hurricane Andrew when the Florida property insurance market virtually collapsed. It is essential today in providing reinsurance protection on a tax-exempt and non-profit basis, supplementing the private reinsurance market.
Since it was created in 1994, the FHCF has protected the market from collapse and has provided tens of billions of dollars in savings to homeowners. It has weathered all the storms, including the 6 major hurricanes that hit Florida in 2004 and then Wilma in 2005. In all that time, it has provided essential coverage. It has kept the market working, protected homeowners, and saved tens of billions of dollars.
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