after brainstorming it Destructive Path Through FloridaHurricane Ian could do deadly damage to the state’s home-insurance market — creating a potential political headache for the Republican government. Ron DeSantis.
Long before the hurricane, Florida’s property insurance system was a mess. Thousands of Florida Landlords Lost your personal insurance policies Over the past two years, over a dozen companies left the market, including many in billions of dollars in annual losses.
Now, the damage done by Ian could be the breaking point of the industry in the state.
More than a million Florida homeowners have been forced to turn to civil property insurance, the state’s publicly funded “insurer of last resort”—meaning state taxpayers are on the hook for billions of dollars in hurricane damages. can be. Early estimates said the storm alone caused at least $63 billion in damage to privately insured property, which does not include flood damage covered by the National Flood Insurance Program, which provides most flood policies.
Annual premiums already cost Florida homeowners an average of $4,200, more than triple the national average rate.
Long-running crisis has turned into home insurance in a campaign For Democrat Charlie Crist, DeSantis’ challenger in November’s gubernatorial election, who on Monday called the incumbent “the worst property insurance governor in Florida history, period.”
Here’s everything there is to know about Hurricane Ian:
Florida’s geography, which regularly puts it in the path of severe storms, contributes to its insurance woes. But its unusually high rate of litigation worsens the situation, state officials say.
An attorney-friendly environment means that Florida handles 79 percent of the nation’s homeowners insurance lawsuits, Financial Times reported – but only 9% of all claims.
“With Ian, especially if this storm leads to litigation, it makes me wonder if the market can sustain it,” said Nancy Watkins of Milliman, an international actuarial consulting firm.
The damage done by Hurricane Ian could be the breaking point of the insurance industry in Florida.
Florida homeowners spend an average of $4,200 in annual insurance premiums, which is three times the national average rate.
Hurricane Ian has forced more than a million Florida homeowners to turn to civil property insurance.
Florida’s location, which regularly puts it in the path of severe storms, is a factor in its insurance woes.
DeSantis, who wrote a . called upon special legislative session To address the insurance problem in May, it acknowledged that the resulting short-term reform — a $2 billion reinsurance backstop for civil property insurance — is far from sufficient.
“This is a problem we will continue to deal with,” DeSantis said on monday, a few hours before the storm. “Obviously, there are other things legislatively that I’d like to see accomplished.
“But if you’re asking if I don’t get hurricanes, the answer is yes.”