Fla. Bill Would Drop Collective Deductible, But Would Incur Long-Range Costs For Consumers

A bill that is moving through the Florida House of Representatives could give businesses and consumers in the sunshine state a large bill if the Florida Catastrophe Fund is depleted after another major hurricane. The proposed bill would lower the deductible for homeowner’s insurance companies before they are granted access to the reinsurance protection they buy from the CAT fund. The bill would lower the industry deductible to $4 billion dollars for the first two storms and $1.3 billion dollars if there were a third or fourth storm during the hurricane season.