TALLAHASSEE – State officials are confident that Hurricane Milton will not be a major hit to Florida’s insurance market, despite analysts’ predictions.
Although the government is investigating the destruction from a category 3 storm – that includes at least four people killed – property the damage did not appear to be as severe as many expected.
“It appears that a once-in-a-lifetime event was largely avoided,” Insurance Regulatory Commissioner Mike Yaworsky said in a statement Thursday.
“The market is about to weather the effects of these storms properly,” he added, pointing out to recent changes including making it harder to sue insurance companies.
On Wednesday, ratings agency AM Best wrote that Milton “poses a significant threat to the Florida property insurance market,” in part because the property and equipment. some debris left out after Hurricane Helene two weeks ago can become destructive projectiles in the air. This threat has not happened in Tampa Bay so far.
Wall Street analysts have predicted that the storm could cause anywhere from $50 billion to $175 billion in insured losses, Barron’s reported. Those fees could hurt some of the smaller insurance companies that dominate the Florida market, leading to instability and rate increases in the future.
Asked about those estimates Thursday morning, Gov. Ron DeSantis dismissed them.
“How the hell would a Wall Street analyst know? It’s been dark all day,” DeSantis said. “Give me a break from some of this stuff.”
Concerns were also raised before Milton about effect of Citizens Property Insurance, Florida’s rule largest insurance and about 1.2 million policies of homeowners.
About 20% of those policies are in Sarasota, Manatee, Pinellas and Hillsborough, which is about $88 billion in exposure to Citizens. in the regions of the forecast cone of the storm.
If Citizens do not have the money to pay claims, it can charge reviews on everyone’s insurance policies, from car insurance to pets, to pick up the tab. But that won’t be necessary after Milton, resident spokesman Michael Peltier said in a statement Thursday.
“Citizens are in a strong financial position and are able to process all requests without the need for fees or assessments,” Peltier said.
Homeowners policies cover damage caused by wind, fire, water leaks, theft and other issues – but not flood damage. That damage is covered by the National Flood Insurance Program or private flood policies.
This is the main reason why Hurricane Helene, which caused major flooding in Tampa Bay, was expected to be a “manageable event” for Florida insurers. That difference may also play a role in dealing with damage from Milton.
Florida’s insurance market has seen a series of booms and busts since Hurricane Andrew in 1992 upended the industry.
The latest crisis began after the state’s decade-long drought of major hurricanes ended in 2017. Since then, rates have skyrocketed and companies have left or closed.
The primary response of Republican lawmakers and DeSantis was to make it harder to sue insurance companies.
The market has started to stabilize, and many companies are asking for no increase in rates or a slight reduction this year. On Thursday, executives announced that USAA is “reaffirming” its commitment to doing business in the country.
But homeowners policies haven’t taken off in a meaningful way, putting pressure on lawmakers who say property insurance remains their top priority.
On Wednesday, Broward County Republican State Rep. Chip LaMarca wrote in X that he wants to work with lawmakers in hurricane-affected areas to “dramatically change the way insurance is done in Florida.”
“I don’t care what the solution is, but I want to find one for every Floridian,” he wrote. “We have to fix it.”
Anyone who needs to submit Citizenship applications can do so at myPolicy customer portal or by calling Citizens at 1-866-411-2742.
• • •
5 things to know about the 2024 hurricane season, according to forecasters.
Forecasters predict that the 2024 hurricane season will be very strong. Here is the reason.
Will Tampa Bay’s flood insurance go up after the hurricane? Warning from Hurricane Ian
Want to know which areas are flooded in Tampa Bay? Here’s where to look.
Lists for building all types of storm equipment.
#Milton #wont #disaster #Floridas #insurance #market #officials
