A National Catastrophe Fund that would provide assistance for insurance claims in Florida has been endorsed by Tom Gallagher, Florida’s CFO. Gallagher’s recommendations came after officials, including Florida Insurance Commissioner Kevin McCarty, met in San Francisco at a National Catastrophe Insurance Summit and recommended the fund’s establishment.
The officials met to discuss the development of a program that would help provide coverage for the entire nation in the event of catastrophes.
Gallagher told the West Palm Beach Post he advocates several federal and state solutions and the creation of a national catastrophe fund. U.S. Reps. Ginny Brown-Waite and Clay Shaw of Florida recently introduced legislation to create such a fund.
As part of a multi-faceted package to address insurance issues, Gallagher advocates federal and state solutions. At the federal level, Gallagher is urging Congress to establish a national catastrophe fund and to create individual catastrophic savings accounts to allow homeowners to save tax-free for deductible and storm recovery costs.
He is also recommending that Congress pass legislation introduced by U.S. Rep. Mark Foley, who represents much of the Treasure Coast, to allow the accumulation of tax-deferred catastrophic reserves by insurers.
On the state level, Gallagher is asking the legislature to earmark the sales tax revenue collected from hurricane recovery to help offset assessments against homeowners. Gallagher also called for standardizing Florida’s building code statewide and capping coverage of homes at $1 million or less in Citizens Property Insurance Corp., the state’s insurer of last resort.
Was this article valuable?
Here are more articles you may enjoy.
Trigger Warning: Cyber Policy Wordings to Impact Coverage for Tech Outage 
Insurers Face Business Interruption Claims After Global Tech Outage 
Allstate, State Farm Sued Over $4 Billion Maui Fire Settlement 
Deere Retreats From Diversity Measures After Online Attacks From This Issue
