Mike Fasano questions Florida Hurricane Catastrophe Fund contract over condo coverage

Jun 7, 2013

The following article was published in the Florida Current on June 6, 2013:

Rep. Fasano questions Cat Fund contract over condo coverage

By Gray Rohrer


Rep. Mike Fasano is questioning whether the reimbursement contract for state-backed reinsurance through the Florida Hurricane Catastrophe Fund, or Cat Fund, is in violation of state laws because it does not cover certain condominium developments.

The New Port Richey Republican sent a letter to Cat Fund chief operations officer Jack Nicholson this week, asking why the fund’s contract exempts coverage for condo structures and units that are rented out six or more times a year. Fasano cites state statutes [s. 215.555(2)(c) and s. 718.1256] asserting condos should be deemed residential properties, with no provisions exempting certain classes of condos.

“Please explain: 1) how the exclusion referenced in Article V of the reimbursement contract is consistent with the statutory definition of ‘covered policy’; 2) under what authority did the CAT Fund create a subset of condominiums based upon rental of individual units; and 3) the basis for a reimbursement threshold coverage of ‘units that are non-owner occupied and rented for six (6) or more rental periods by different parties during the course of a twelve month period,’” the letter states.

Gov. Rick Scott and Cabinet officers recently approved the Cat Fund contract ahead of hurricane season, which began Saturday, with little fanfare.

Nicholson has yet to respond to Fasano’s letter.

Read the original article here:  http://www.thefloridacurrent.com/article.cfm?id=33145241