Hurricane Fund Has $3.2 Billion Shortfall

TALLAHASSEE, Fla. (AP) — Florida’s hurricane fund is confronting a potential $3.2 billion shortfall.

Financial experts for the fund are presenting new estimates Tuesday. They show that turmoil in financial markets and a weak economy have made it unlikely that the fund would have enough money to help insurers after a hurricane.

The fund was created after Hurricane Andrew devastated South Florida in 1992. Insurers get help to pay homeowners if a storm results in widespread damages.

This year the fund is providing $18.4 billion worth of coverage. It should have more than $7 billion on hand, but it would still need to borrow another $11 billion. The new estimates suggest the fund could borrow just $8 billion.

An advisory council is expected later Tuesday to adopt the estimates.

Source: Associated Press