The last few years haven't been kind to U.S. citizens. A flurry of tropical storms, most notably Hurricane Katrina, have wrought havoc on many a property and driven insurance rates sky-high. Many insurers got rid of their highest risk clients and increased assessment prices for others. Unable to afford private companies, many Americans were forced to turn to Citizens Property Insurance Corp.

Run by the state of Florida, Citizens Property Insurance has been trying to keep rates low for its clients. Many of the company's critics, however, say that citizens who still use privately run insurance companies are being pushed to pay even more so those insured by CPIC will be able to maintain lower rates. In the end the state wants to decrease its Hurricane Catastrophe Fund, allowing it to simultaneously decrease its investment in CPIC.

Unfortunately, according to critics, this means that Citizens Property Insurance doesn't collect as much in premiums and won't be able to make big payouts in case of another catastrophic storm like Katrina. And with the decrease in the catastrophe funds homeowner insurance probably won't cover enough to completely reimburse them for lost property. Though the government will save more money and thereby reduce risk to itself, the costs to home owners may be enormous.

Citizens previously had the disaster fund to fall back on. It was originally intended to allow insurers to keep their premiums lower during times of extensive property damage (like after Katrina). Decreases in money will force companies to increase insurance rates even more, however, putting even more of a strain on already harried homeowners.

Owners of houses in southern Florida are more likely to be at risk thanks to their closeness to tropical storm areas, and consequently will have to pay more in property premiums. If another storm happens to come along – and one is likely to eventually – these home owners may be in trouble, especially if Citizens Property Insurance isn't able to drive up its premiums.