Higher Insurance Premiums

Assessing the damage of the past two hurricanes, property owners may have another thing to worry about - higher insurance premiums.

However Florida state officials say the added cost will actually save money.

Governor Jeb Bush and the Florida cabinet unanimously approved a bond sale of up to 1.5 billion dollars. The money will replenish the state's hurricane insurance catastrophe fund.

Money was taken from the fund to help cover losses from last year's storms. The action today means that state residents will pay a one percent assessment on property and casualty insurance policies for a decade.

Chief financial officer Tom Gallagher says insurance companies can expect to save about 2.5 billion dollars by obtaining reinsurance from the fund instead of having to buy it on the open market.