Glossary

Florida Hurricane Catastrophe Fund

Florida's state-run reinsurance program, set up after Hurricane Andrew, that reimburses residential insurers for part of their hurricane losses.

Also called: FHCF, Cat Fund, Florida Cat Fund, Hurricane Cat Fund

The Florida Hurricane Catastrophe Fund, or FHCF, is a state-run reinsurance program administered by the State Board of Administration. Lawmakers created it after Hurricane Andrew so insurers would keep writing homeowners coverage in Florida. Insurers that write residential property in the state, including Citizens Property Insurance Corporation, must buy FHCF coverage and pay premiums for it.

Each insurer picks a coverage level of 90%, 75% or 45%. After a hurricane, the fund reimburses that percentage of the insurer's covered losses above its retention, a figure based on the premium it pays the fund, plus an allowance for loss adjustment expenses. The fund's total obligation is capped, and as of the 2026 contract year the State Board of Administration describes the statutory maximum as $17 billion. It pays from its fund balance first. If claims exceed that, it can issue bonds repaid through emergency assessments on most Florida property and casualty policies, which means a severe season can reach policyholders as a charge on their bills.

The FHCF is why many Florida insurers can afford catastrophe protection at a lower price than the private market alone would charge. It does not pay homeowners directly. See florida's home insurance market: what happened and what changed and Citizens Property Insurance in Florida: who qualifies and what to know for how it fits with the rest of the state's system, and reinsurance for the basic idea.

Last reviewed October 10, 2026

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Related terms

Reinsurance Insurance that an insurance company buys from other companies, which reimburse part of its claim payments, especially after a large disaster. Reinsurance tower The stack of reinsurance layers an insurer buys one above another, each starting where the layer below ends, to cover progressively larger catastrophe losses. Assessment An extra charge raised after a state-backed insurer or guaranty fund runs short of money, collected from insurers and sometimes passed on to policyholders. Probable maximum loss A modeled estimate of how big an insurer's loss from a single severe catastrophe could be, stated at a probability such as a 1-in-100-year event. Hurricane deductible A separate amount you pay first, usually a percentage of the dwelling limit, that applies to wind damage from a hurricane in place of your regular flat amount. FAIR plan A state pool, funded by the insurers doing business there, that sells basic property coverage to owners who cannot find it in the regular market.

Related guides

Citizens Property Insurance in Florida: who qualifies and what to know How Florida's Citizens works: the 20% eligibility rule, what it covers, take-out offers, flood and assessment rules, and how to move to a private insurer. Federal catastrophe reinsurance proposals Bills in Congress would put a federal backstop behind insurers or state programs after huge disasters. What the INSURE Act and others do, and the arguments. Florida's domestic home insurers: who they are Who Florida's home-grown insurers are, how Citizens takeouts and reinsurance shaped them, the 2021-2023 failures, and how to judge the one on your policy. Reinsurance costs and your premium How the price of reinsurance reaches a homeowners rate, what happened to it in 2023 and since, and why falling reinsurance prices do not cut every bill. Reinsurance: the insurers behind your insurer How reinsurance works for home insurers: quota share vs excess of loss, retentions and towers, state backstops, and what it means for your premium and claim.

Related insurers

American Integrity Insurance Tampa homeowners insurer founded in 2006 and public on the NYSE since 2025; sold by independent agents in Florida, Georgia and the Carolinas. Citizens Property Insurance Corporation (Florida) Florida's not-for-profit, government-created insurer of last resort; takeouts cut it from 1.41 million policies in 2023 to about 255,000 in October 2026.