The Florida Hurricane Catastrophe Fund (FHCF) is a state run mandatory reinsurer which provides reimbursements to insurers writing residential property insurance in the state. The FHCF was created during a special legislative session in November 1993 following Hurricane Andrew. The law requires that if the cash balance of the FHCF is not sufficient to pay losses that a broad base of insurance lines will be assessed to fund revenue bonds to pay the losses.
The FHCF assessments apply to all property and casualty lines of business, including property and casualty business of surplus lines, but excludes those lines of business specifically exempted in Section 215.555, F.S. The FHCF currently has bonds outstanding related to payment of claims from the 2005 hurricane season, which are being financed by an assessment on premiums for the lines of business listed above. The current assessment percentage is 1.3% on premiums for all policies written or renewed on or after January 1, 2011.