Florida May Issue Bonds to Shore Up Hurricane Catastrophe Fund

State could borrow between $1.5 and $3.8 billion in the effort.

Chris Schafer
Written byChris Schafer
Chris Schafer
Chris SchaferSenior Editor
  • 15+ years in content creation

  • 7+ years in business and financial services content

Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.

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John Leach
Edited byJohn Leach
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John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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Published February 5, 2024 at 4:00 PM PST | Reading time: 1 minutes

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The state of Florida may again turn to bonds, and the public, to provide much-needed funding for its Hurricane Catastrophe Fund.

A recent securities filing by the Florida State Board of Administration shows it aims to generate between $1.5 billion and $3.8 billion through the sale of bonds. These funds will then be allotted to the state’s Hurricane Catastrophe Fund, replacing existing bonds set to mature in 2025.

The Hurricane Catastrophe Fund reimburses property insurers in the wake of hurricane-related losses.

The Sunshine State’s risk of weather-related damage has contributed to Florida’s high home insurance costs. On average, Florida homeowners pay $7,788 per year for insurance — making it the most expensive state for home insurance, according to Insurify data.

A proactive measure

While these bond sales draw attention to the weather’s impact on insurance costs, experts see this latest sale by the Florida State Board of Administration as a proactive measure rather than one to satisfy an immediate need.

Gina Wilson, the chief operating officer of the Florida Hurricane Catastrophe Fund, stated the bonds provided “additional capital at an established interest rate and the ability to access funds quickly in the event of a significant storm event.”

What’s next?

Florida’s Hurricane Catastrophe Fund reports it has paid out $1.9 billion in reimbursements since Hurricane Ian’s arrival in 2022. It also estimates it will pay out an additional $8.1 billion by 2028, meaning bond sales will be applicable now and, likely, in the future as well.

The board’s filing indicates it expects the bonds — Series 2024A — to price no sooner than March. It will issue an official statement for investors before selling the bonds.


Chris Schafer
Chris SchaferSenior Editor

Chris is Insurify’s Senior Editor for home insurance. He’s a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more. He is passionate about breaking down complex subject material to make important information accessible to everyone. 

Chris began his career as a journalist, managing two weekly newspapers, then moving into marketing and content marketing roles. Before joining Insurify, Chris served as the content strategy manager at Siteimprove and as the content manager at Brandpoint, where he managed a team of content creators. 

Away from work, Chris is an active hockey player and proud father of two rambunctious little girls. Chris holds a Bachelor’s degree in English with a minor in mass communications from the University of Minnesota. 

John Leach
Edited byJohn LeachSenior Insurance Copy Editor
Photo of an Insurify author
John LeachSenior Insurance Copy Editor
  • Licensed property and casualty insurance agent

  • 8+ years editing experience

John leads Insurify’s copy desk, helping ensure the accuracy and readability of Insurify’s content. He’s a licensed agent specializing in home and car insurance topics.

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