What is the primary purpose of the Florida Hurricane Catastrophe Fund?

The primary purpose of the Florida Hurricane Catastrophe Fund is to provide reinsurance to insurers for catastrophic hurricane losses. This fund acts as a safety net for insurance companies, allowing them to share the financial burden of major hurricane-related claims. By offering this reinsurance, the fund ensures that insurers can remain solvent and continue to operate in the event of a large-scale disaster. It helps stabilize the insurance market and ensures that homeowners can obtain coverage for hurricane-related damages, ultimately contributing to the resiliency of the property insurance market in Florida.

The other options reflect valuable initiatives but do not capture the core function of the fund. Funding hurricane preparedness programs, compensating homeowners, and assisting with rebuilding can be part of broader disaster response strategies, but they are not the explicit primary objective of the Florida Hurricane Catastrophe Fund. This fund's primary focus is on risk management for insurers to ensure they are equipped to handle extensive losses due to hurricanes.