TALLAHASSEE -- State leaders said Florida's Hurricane Catastrophe Fund was in trouble, and Floridians would all end up paying for it.
Because of Hurricane Wilma in 2005, the state's backup insurance fund was about $600 million in the hole.
The Florida Cabinet Tuesday approved extending a 1 percent fee all Floridians pay on their homeowner, auto and boat insurance to make up for the shortfall, but Gov. Charlie Crist and others said they wanted to make sure people were not taking advantage of the system.
"Sure, I'm concerned. When the CFO and General Milligan both articulate that there may be illegitimate claims in there, you know that's always a possibility," Crist said. "I know from my days as attorney general that that's a possibility. I just think that additional due diligence is always good."
The 1 percent fee was put in place following the 2004 hurricanes.
Some warned if Florida was hit by more tropical storms, that fee could be extended even further.
Comment on this story.