Catastrophe Fund Change

The head of Florida’s Hurricane Catastrophe fund tells Governor Rick Scott that the fund should get smaller, which would likely mean that your homeowners insurance bill will get larger.

The “CAT Fund,” as it’s known, serves as insurance for insurance companies that sell homeowners policies here.

But it faces a three billion dollar deficit.

And the Fund’s Chief Operating Officer, Jack Nicholson, says it has grown too large to do its original job.

When Hurricane Andrew struck South Florida in 1992, it not only proved catastrophic to many homes and businesses, but to the companies that insured them. “They were planning to cancel about 800,000 policies in the state,” Nicholson says. “Companies were going to withdraw from the state. We had to have something to provide them with some financial backing and support.”