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Legislative Leaders want to change the way the state prepares for hurricanes, and it could cost you more up front. Lawmakers are looking at revamping the Catastrophe fund and requiring some Floridians to storm-proof their homes. As Whitney Ray tells us, insurance premiums could go up, but lawmakers say it would save taxpayers in the long run.

hear it here: Legislators Want To Reduce CAT Fund

Florida’s 28 billion dollar catastrophe fund is supposed to lower insurance rates by providing insurance companies with low cost coverage for big losses. But state lawmakers say average homeowners may have to bail out the fund if there is a big storm.

“What they’re going to end up doing is paying on the back side after the storm, huge amounts,” said Chairman of The House Insurance Committee Donald Brown.

Once a supporter of a large cat fund, Chief Financial Officer Alex Sink now claims the Catastrophe fund isn’t cost effective. Tara Klimek, a spokeswoman from Sink’s office, said reducing the fund will actually save Floridians in the long run.

“A Cat 3 in South Florida could really bust that top layer of the cat fund,” said Klimek. “If that happens, would we really be able to even bond for that 28 Billion dollars, how would we be able to do that? Then to make it up we would go out and assess people, and that’s really taxes.”

Sink wants to reduce the CAT fund’s risk by three billion. Cutting money from the fund could cause insurance companies to raise premiums.

“There may be a 1.5 or a 2 percent effect on the policies, and were still refining those numbers,” said Klimek.

Members of Florida’s Insurance Council, an industry group, said the private companies are ready to take on the risk the state could hand over. The question is at what cost to homeowners. Some Lawmakers would like to make changes to the catastrophe fund before hurricane season.