As a major hurricane, Idalia not only threatens the lives of Floridians but also the progress of Florida’s property insurance market that was already in crisis.
Even though insurance experts said significant gains have been made since a special session to address skyrocketing premiums, they also said Hurricane Idalia could wreak havoc on the market. The experts said the property insurance industry is in a much better position than a year ago, because insurance companies have adequate levels of reinsurance, which is designed to protect them.
But the bad news is an real damage to property as a result of Hurricane Idalia, will result in all Florida homeowners having to pay more for their premiums. “We are going to see portions of the Gulf Coast that will experience eight to 12 feet of storm surge,” said Florida Division of Emergency Management Director Kevin Guthrie. If Guthrie’s predictions are right, Floridians are poised to suffer another destructive blow from Hurricane Idalia both on the coastline and in the inland areas. It’s the worst-case scenario for property owners in Florida. “Any major loss event will have a negative impact on the Florida insurance market. And its recovery from the instability we’ve been seeing for so many years,” said Insurance Information Institute spokesman Mark Friedlander. Friedlander said one of the biggest risks Idalia poses is to the state-backed property insurance company Citizens. Simply put the company is carrying too much risk in the state of Florida, with more than 1.3 million policies currently compared to 486,000 policies at the end of July 2020. Friedlander said the wind, the waves, and life-threatening storm surge could result in insurance claims that may deplete Citizens reserves, which would result in what’s called a “Hurricane Tax” or surcharge, to all Florida insurance policyholders. “It puts us closer to a hurricane tax, meaning all consumers would be on the hook to help replenish the funds of citizens if we reach a certain point where reserves are depleted, and citizens needs to implement this hurricane tax not only to their customers, but to all consumers in Florida,” he said.It’s a line-item surcharge anywhere from 15% to 45% added to your annual premium. If necessary, the charge would be added to both property and auto policies. The tax would vary for Floridians with other property insurance carriers. Friedlander said another risk Hurricane Idalia poses is to private insurance companies that may be considering writing new policies in Florida. He said a hurricane forming in the Yucatan Peninsula this early in hurricane season, could deter new carriers from opening up business in the Sunshine State. “There’s a potential that some of those other organizations might put the brakes on their plans for Florida if they see significant loss. And we have to remember, this may be the first of multiple hurricanes striking Florida this year. The atmospheric conditions tell us there is certainly potential for more significant hurricane activity that impacts Florida in 2023,” he said. Insurance companies are no longer writing new policies, they’ve put a moratorium in place that will remain until the threat is passed. We’ve also learned that 82% of Floridians do not have flood insurance, so the hope is Idalia will not bring with it the catastrophic rains Floridians experienced with Hurricane Ian.
Please follow us on Google to support us United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Tropical storm Idalia expected to become a major hurricane before hitting Florida, forecasters sayForecasters said they expected Idalia to become a hurricane later today in the Gulf of Mexico and then curve northeast toward the west coast of Florida.
Read more »
Idalia now expected to hit Florida as a major hurricaneTropical Storm Idalia is impacting Cuba on Monday, but by Wednesday, it could strike Florida as a major hurricane.
Read more »
Idalia latest: Sales tax holiday declared in Florida ahead of expected hurricaneFlorida is preparing for the second hurricane-prep tax holiday of the year as Tropical Storm Idalia intensified on Monday.
Read more »
Hurricane Idalia rapidly intensifying, eyeing Florida as a major hurricane with life-threatening impactsFlorida Gov. Ron DeSantis declared a state of emergency for dozens of counties over the weekend and prepositioned resources to provide immediate support for areas that will be impacted by Hurricane Idalia.
Read more »
Hurricane Idalia: Texas sends resources to Florida as hurricane approachesTexas A&M Task Force 1 has been deployed to Florida at the request of FEMA.
Read more »