Florida Lawmakers Slam Inaction on Reducing CAT Fund Risk

Two Florida lawmakers are taking their colleagues to task for failing to pass legislation that would have lowered the risk for taxpayers who are the hook for making up losses in the aftermath of a major hurricane or a series of damaging storms.

Sen. JD Alexander and Rep. Bill Hager said they hope Florida gets through a seventh straight summer without a catastrophic storm. Their statement said Floridians are again forced to rely on good luck to avoid a financial catastrophe.

The state would have to borrow $11 billion by selling bonds, probably at high interest rates in an uncertain market, to cover those losses. To pay those back, the state would impose a surcharge on every property and auto insurance policy, costing the average consumer hundreds of dollars annually.