Florida Governor Jeb Bush has enacted a hurricane insurance law that restructures the Florida Hurricane Catastrophe Fund and changes coverage for personal lines property insurers.

The bill – signed to coincide with another expected hurricane season – reduces the amount of losses insurers must retain before they can access the fund to $US4.5 billion from $US5 billion for the two costliest storms of the season, and $US1.5 billion for storms following those.

The figures were received with mixed sentiment, with many insurers believing the fund will not help stabilise the Florida insurance market.

Others criticised the fact that the new system forces them to settle all replacement cost coverage claims upfront, rather than in installments.