BOCA RATON, Fla. - Advisors with Florida's Hurricane Catastrophe Fund will meet Thursday to discuss borrowing extra money before hurricane season begins.
Thousands of homes were damaged by hurricane Wilma in 2005 and Floridians are still paying a surcharge on their insurance bills.
Because the state hasn't seen a hurricane like Wilma in a while, the CAT fund has had a chance to build up cash, but just in case a hurricane causes enough damage to deplete the fund, advisors want to know how much they can borrow to be OK.
The panel will approve new estimates to borrow as much as 7 billion dollars.
The CAT fund currently has 12 billion dollars in it.
Consultants said the fund is in the best shape it's ever been in since it was created back in 1993 after Hurricane Andrew.
The fund offers insurance companies reinsurance at prices lower than those in the private market.
But the fund will have to borrow money if claims exceed its cash reserve.