Well, it became official on Wednesday, May 31. Governor Jeb Bush, Charlie Crist and Tom Gallagher signed off on a bill that will float a bond issue for the CAT Fund. It is a ONE BILLION DOLLAR bond issue that every policy holder in the state will pay for. The money will be derived via a 1 percent (Estimated) surcharge on your yearly insurance premium.
The CAT Fund is a fund set up by the state to insure insurance companies that do business in the state of Florida. In simplistic terms it works this way: XYZ Insurance Company insures our home. Let's say you suffer $50,000 in hurricane damage to your dwelling. XYZ insurance pays you and then files a claim of equal amount with the reinsurance company, which in this case is the state of Florida. Florida pays XYZ to make them whole again. It sounds simple, but the problem I have is that the insurance companies make billions in profits on all kinds of insurance sold in the state, but you and I end up paying for it again in the form of special assessments, surcharges and any other fee they can dream up.
By the way did I mention that this new 1 percent surcharge is for TEN YEARS! That pays for our past problems - how do we pay for - God forbid - any future damage. As they say - hold your breath, this ride is going to get wild.
Ric Cornelius is the Broker/Manager of Sand Key Realty Sales and Rentals, Inc. Sand Key Realty has three offices with 40 agents. One office is at 740 S. Gulfview Blvd., Clearwater Beach, 727-443-0032; the second office is at 2701 Gulf Blvd., Indian Rocks Beach, 727-595-5441; and the third office is at 309 Belleview Blvd., Belleair, 727-461-4200.
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