TBO.com - TBO is Tampa Bay Online

Hefty Hurricane Wilma Claims Prompt State To Issue Bonds

ADVERTISEMENT

By JEROME R. STOCKFISCH and CATHERINE DOLINSKI of The Tampa Tribune

Published: June 10, 2008

TALLAHASSEE - The bills for the wicked hurricane seasons of 2004-05 are still coming in, and Floridians with insurance policies covering everything from autos to boats to homes are going to have to dig deeper to cover the tab.

Gov. Charlie Crist and state Chief Financial Officer Alex Sink voted today to allow the state's Hurricane Catastrophe Finance Corp. to issue $625 million worth of bonds to pay claims resulting from 2005's Hurricane Wilma.

To cover the debt, the current 1 percent assessment on virtually all insurance bills in Florida, which is earmarked to replenish the state hurricane catastrophe fund, will be extended by two years. It was slated to end in 2012.

The catastrophe fund covers hurricane costs that insurance companies cannot. Jack Nicholson, director of the Hurricane Catastrophe Finance Corp., said that Hurricane Wilma's costs of nearly $11 billion have well exceeded the state's expectations.

"This is the largest [state] payout expected of any storm that Florida's ever had," Nicholson said.

Share this:

Loading Comments...

Email Print

ADVERTISEMENT