Florida’s current homeowner’s insurance system is broken. One major hurricane has the potential to bankrupt private insurers, and the State’s self-insurance programs, devastating Florida’s already weakened economy (Miami Herald, 21 Sept 2009). State officials are certainly aware of the problem, as voiced in an op-ed by State Senator J.D. Alexander (Tallahassee Democrat, 25 Oct 2009). In her letter to Florida TaxWatch dated 24 October 2008, the Honorable Alex Sink, Chief Financial Officer for the State of Florida, expressed her concerns about the State’s financial security in the event of a major windstorm (Appendix A). She requested an economic analysis that would explore Florida’s financial exposure from its self-insurance programs, Citizens Property Insurance Corporation (Citizens) and the Florida Hurricane Catastrophe Fund (FHCF).