The Florida legislature earlier this month began considering several alternatives to what one critic called the "three unsteady legs" of the current system for providing the Sunshine State's citizens with property insurance coverage.
Based on comments at hearings on the issue, the legislature is acting in apparent alarm at the potential damage a major hurricane or group of windstorms could have on the state's already fragile fiscal condition. Their concern is based on evidence that a 100-year event--or even a group of smaller storms--could spell triple jeopardy for the state's residents.
Specifically, in the event of a one-in-100-year event, one of the state's "unsteady legs"--Citizens Property Insurance Corp., the homeowners' insurance safety net created by the legislature in 2002--would be facing a liability of roughly $24 billion, far exceeding its current ability to pay, according to a presentation recently given to state lawmakers.
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