A water tower, a Florida City landmark, stands over the ruins of the Florida coastal community that was hit by the force of Hurricane Andrew. (AP Photo)

In a positive sign for the economy and Florida property owners, state financial officials said they could find twice as much money in the bond market to cover hurricane losses as they estimated six months ago.

“The picture is definitely better than it was,” said Ash Williams, head of the State Board of Administration, which manages Florida’s investments. “The bond market is loosening up a little bit.”

Williams said the state could expect to finance $8 billion in residential losses – up from an October estimate of $3 billion – and potentially cover losses if a Hurricane Andrew-type storm hits the state this year.

The announcement convinced Gov. Charlie Crist and the Florida Cabinet to abandon plans for extra financing for the state Hurricane Catastrophe Fund. Last year, Crist and the Cabinet paid Warren Buffett’s company, Berkshire Hathaway, $224 million in return for a promise of up to $4 billion in potential loans.

The state is still seeking a federal line of credit in case credit markets dry up after a storm.

(more…)

Gov. Charlie Crist shakes hands this morning with panelists of a kids-only town hall meeting. Students from around the state gathered in Tallahassee to voice their opinions and ask questions about state government. (AP)

UPDATE: Senate President Jeff Atwater sent word through his spokeswoman that “20 percent is too much.”

Gov. Charlie Crist said the main property insurance bill in the legislature had little chance of passing, calling the proposed 20 percent cap for increases to individual Citizens policy holders “excessive” and questioning whether the measure would get past Senate President Jeff Atwater, R-North Palm Beach.

“As I’m sure you know, Atwater was one of the strongest leaders in giving us the opportunity to strengthen Citizens,” Crist said. “So I don’t know if that’s going to go very far.”

The proposal is expected to contain several changes, including one that would use the state pension fund to loan $2 billion to the Florida Hurricane Catastrophe Fund in the event of a major storm.

Crist said he wasn’t wild about that one, either.

“Getting some backup from the federal government, I think, is a better way to go,” Crist said. “I think it’s very doable.”

Last year, Crist and the Cabinet paid Warren Buffett’s Berkshire Hathaway $224 million for a promise to loan the state $4 billion if a major storm hit the state. This year, Crist and the Cabinet are appealing to the federal government. More on that attempt here.

(more…)

A property insurance proposal from Rep. Bryan Nelson, R-Orlando, and Sen. Garrett Richter, R-Naples, would lift a recommendation from the Citizens Property Insurance Corp. Mission Review Task Force and increase rates from the state-run insurer by a statewide average of 10 percent and up to 20 percent for individual policy holders.

The plan, expected to be unveiled in respective committee hearings this week, would also:

* Reduce the capacity of the Hurricane Catastrophe Fund by $12 billion over six years, which could result in Citizens and private insurers raising the cost of property policies. State officials estimate an average annual increase of 3 percent.

*Allow the state to borrow $2 billion from the state pension fund to back up the catastrophe fund in event of a hurricane.

* Use $26 million from the proposed Citizens increases to pay for My Safe Home Florida, which helps homeowners finance new storm windows and fortified roofs.

More here.