Hurricane Andrew
Though Andrew was a small tropical cyclone for most of its lifespan, it caused extreme damage, especially in the Bahamas, Florida, and Louisiana. The vast majority of the damage was as a result of extremely high winds, although a few tornadoes spawned by Andrew caused considerable damage in Louisiana. Throughout the areas affected, almost 177,000 people were left homeless. Outside of the Bahamas, Florida, and Louisiana, effects were widespread, although damage was minimal. Overall, $27.3 billion in losses and 65 fatalities were attributed to Andrew, with some estimates ranging as high as $34 billion. Andrew was the costliest hurricane in U.S. history at the time, but is now seventh following hurricanes Katrina (2005), Ike (2008), Sandy (2012), Harvey (2017), Irma (2017), and Maria (2017).
Citizens Property Insurance Corporation
Hurricane Andrew in 1992 was the costliest storm the United States had experienced, with $26.5 billion in damage. It took a huge bite out of the reserves for claims held by 30 insurance companies doing business in Florida. Eleven insurance companies were bankrupted, while others stopped writing or renewing property insurance policies in the state. Those that remained raised premiums and deductibles across the board and limited the number of high-risk policies they wrote. Almost 1 million coastal homeowners were unable to find any company willing to insure their homes, so the Florida Legislature authorized the formation of the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Underwriting Association (FWUA) as the insurers of last resort. The "Florida Hurricane Catastrophe Fund" was also created and managed by the state as a resource for Florida consumers and insurers. It is funded by assessments to every property insurance policy in the state.