Hurricane Irene is spinning its way through the Atlantic and could impact the Central Florida area by Friday. The storm is currently a Category 2.
With the first major storm of the season heading our way, it's a painful reminder of how very vulnerable Florida's property insurance system is. The James Madison Institute published a comprehensive study on this topic, and suggested changes to the Florida Citizens Property Insurance Corporation ("Citizens") and the Florida Hurricane Catastrophe Fund (the "Cat Fund"):
With the first major storm of the season heading our way, it's a painful reminder of how very vulnerable Florida's property insurance system is. The James Madison Institute published a comprehensive study on this topic, and suggested changes to the Florida Citizens Property Insurance Corporation ("Citizens") and the Florida Hurricane Catastrophe Fund (the "Cat Fund"):
James Madison Institute | Backgrounder February 2011 | Solutions to Restore Florida's Property Insurance Marketplace to Protect Taxpayers and the InsuredSome important facts and comments from the report:
This study presents data demonstrating that Florida’s property insurance system is seriously broken and needs significant changes, some of which may be somewhat painful to — or unwelcomed by — those who benefit from the status quo. Yet those changes must be enacted if the Legislature hopes to protect the state against the risks inherent in crowding 18 million people onto a low-lying peninsula that juts out into one of the most hurricane-prone areas on Earth. For the past several years Florida has placed its public safety and fiscal health at risk, and the state has — against the odds — won each time. That winning streak cannot continue forever. Therefore, change must come because the risks are simply too great.
