This money will be collected through premiums from insurers and also “provides lower-cost backup coverage to brand-name private carriers, cutting their reliance on expensive policies purchased mostly from offshore ‘reinsurance’ firms.”
The bottom line to the average Florida homeowner is an expected 5% to 40% drop in insurance premiums. However, be aware that the catastrophe fund is currently running low and therefore is vulnerable to any future major storms that could deplete it. If these circumstances arise homeowners might have to pay “fees on home, auto, business and other types of insurance to repay the debt.”