Bluer White
New Yorker
Florida’s already-volatile insurance industry is bracing for Hurricane Idalia
https://www.cnn.com/2023/08/29/business/insurance-losses-florida-tropical-storm-idalia/index.html
Safety first for all these folks the next couple days, of course.
Being from the Northeast, seeing where people decide to build and live or are 'stuck' living in the most vulnerable areas of Florida is bizarre to me. I know hurricanes aren't unique to the state and it's part of life in that general area. And the path of this one might be a little less typical than other paths.
The scale of damage and the rebuilding costs attached to annual hurricane season is just something else, though. Particularly that flood damage
https://www.cnn.com/2023/08/29/business/insurance-losses-florida-tropical-storm-idalia/index.html
....The storm is strengthening quickly and is projected to intensify into a powerful Category 3 hurricane.
That’s slightly weaker than Hurricane Ian, which made landfall in September 2022 as a major Category 4 storm with sustained winds of around 150 mph. Hurricane Ian caused about up to $65 billion in insured losses, according to reinsurance company Swiss Re. Ian was the most expensive storm ever to hit the state, including $17 billion in uninsured losses.
.... “Florida’s property insurance market remains very volatile, but the insurance industry is well-capitalized to pay Idalia claims,” he added. “One of the biggest reasons is insurers have been able to obtain adequate reinsurance policies this year.”
The cost to the consumer, however, will likely be higher insurance premiums. One of the biggest reasons insurance companies are in a good financial position to pay claims this year, according to the Insurance Information Institute, is because insurers have been able to obtain satisfactory policies from reinsurance companies, which insurance firms use to cover some of their risks.
....The average cost of reinsurance increased 40-70% this hurricane season. That means (insurance companies) will have to pass along those costs along to customers in the form of higher premium rates,” said Friedlander.
Florida residents are already spending an average of $6,000 dollars on home insurance policies, according to III, four times more than the average in other states.
.... According to III, 85% of Florida residents have home insurance, which covers wind damage. Flood insurance is purchased through a different policy, mostly through the Federal Emergency Management Agency.
Enrollment in flood insurance has seen a steady uptick every month since October 2022, according to the latest FEMA data. As of July 31, there were an additional 44,000 active flood insurance policies in Florida than there were last August, before Hurricane Ian hit the state. While Florida has the highest flood insurance enrollment rate of any state, Friedlander said only 18% have flood insurance through either federal or private insurers.
Safety first for all these folks the next couple days, of course.
Being from the Northeast, seeing where people decide to build and live or are 'stuck' living in the most vulnerable areas of Florida is bizarre to me. I know hurricanes aren't unique to the state and it's part of life in that general area. And the path of this one might be a little less typical than other paths.
The scale of damage and the rebuilding costs attached to annual hurricane season is just something else, though. Particularly that flood damage