The purpose of the CAT Fund is to protect and advance the state's interest in maintaining insurance capacity in Florida by providing reimbursements to private insurers for a portion of their catastrophic hurricane losses
Tampa, FL (PRWEB) January 22, 2015
At the start of the new year, Florida consumers got a welcome financial respite when insurance premiums dropped for 2015. Policies including auto insurance, homeowner's insurance, business, rental and a number of other types of insurance were included in the price change, according to SaintPetersBlog (12/29/2014).
On January 1, the Florida Catastrophe (CAT) Fund eliminated its 1.3% assessment on these policies that had been in place since 2007. This "hurricane tax" covered the extra cost of insurance claims that stemmed from damage during eight successive hurricanes that hit Florida in 2004 and 2005.
David Miller, a licensed public adjuster and owner of Miller Public Adjusters, says the CAT Fund's assessment is no longer necessary for reimbursing claims filed due to hurricane damage -- since Florida hasn't seen a major hurricane in almost a decade.
"The purpose of the CAT Fund is to protect and advance the state's interest in maintaining insurance capacity in Florida by providing reimbursements to private insurers for a portion of their catastrophic hurricane losses," Miller explains. "The money in the fund has grown over the last 10 years, because Florida hasn't been hit by a hurricane since Wilma in 2005."
According to Miller, despite the fact that Florida policyholders will no longer have to pay CAT Fund's assessment, they can still be confident their claims will be covered by their insurance providers in the event of a natural disaster.
"There are two major effects this premium reduction has on our clients," Miller says. "One is the obvious reduction of insurance premiums. But even more importantly, our clients will have the reassurance in knowing that if a hurricane or other catastrophic natural disaster hits, their insurance will be solvent enough to pay their claim in order to rebuild their lives."
To be sure that people's insurance policies will cover their claim in the event of their property becoming damaged by a natural disaster, Miller advises that people review their insurance policies regularly to ensure they are adequately covered.
"Be sure to review your policies every year or two, and be sure your policy limits reflect the actual value to replace your damaged property in the event of a partial or total loss," he says. "Also, always make sure you have proper representation and someone looking out for your best interests."
About Miller Public Adjusters
Miller Public Adjusters are dedicated to assisting commercial and residential property insurance policyholders with any type of covered property damage insurance claims. Licensed, bonded, and certified, Miller Public Adjusters is an advocate for the policyholder, not the insurance company. To learn more, visit millerpublicadjusters.com/Florida-Public-Adjuster