State lawmakers rethink the gamble on storm insurance
Between 2004 and 2005, a total of eight hurricanes passed Florida and left a trail of destruction in its wake. Because of this, the state government seriously considered property insurance. Gov. Charlie Crist allowed Citizens Property Insurance Corp to freeze its rates at its 2005 levels. This caused rates to plunge at its lowest levels in order that home owners will choose Citizens instead of a private insurance company. In addition, they allowed the utililzation of the state reinsurance fund known as Florida Hurricane Catasthrope Fund, which is the fund paid for by assessments on premiums.