Florida Property Insurance Crisis – Why There is Little Chance the Feds Will Bail Out Florida
You haven’t heard much about it – but it is still there.
Even though we survived 2009 without a major Florida hurricane, the day of reckoning has simply been postponed.
Why?
Because the Florida Property Insurance market continues to rest on a shaky foundation comprised of the Florida Hurricane Catastrophe Fund, Citizens Property Insurance Corporation, and newly formed Florida home insurance companies looking to grow their customer base.
While things have improved with the Florida Cat fund and Citizens, the state of Florida still has a long way to go before this system has enough cash on hand to pay claims after a major Florida hurricane.
It’s really quite simple.
If these entities don’t have enough cash to cover their share of the claims they might have to raise cash in bond markets that are still unfriendly.
That means that some Florida homeowners could be waiting a long time to get their claim paid after the next major storm.
A major Florida hurricane in 2010 still could send shockwaves through out the state if there isn’t enough cash to pay claims.
That’s why many are pushing the Federal Government in Washington to consider a National Hurricane Catastrophe Fund.
But with the billions the Feds have spent on Wall Street, stimulus packages, and possibly healthcare in the near future, there will be very few people listening in Washington as Florida continues to make a case that the Federal Treasury should backstop Florida’s underfunded property insurance system.
To learn more about the Florida Property Insurance crisis, visit the Home Insurance Buyers Guide located at:
The buyers guide helps you find, screen, and contact Florida homeowners insurance companies still writing new business and can help you save thousands.
Discovering even one additional Florida home insurance company could make the difference in helping you to save thousands during these difficult financial times.
And avoiding even one thinly capitalized Florida homeowners insurance company that might not surive the next Florida hurricane is something you have to investigate further.
Learn more at: