Florida braces for potential double-digit billion-dollar insurance losses after Hurricane Milton
Despite avoiding worst-case scenarios, Hurricane Milton’s aftermath is expected to severely strain Florida’s already fragile insurance market, with damages potentially reaching billions of dollars.
Gary Fineout reports for POLITICO.
In short:
- Hurricane Milton brought deadly tornadoes, flooding, and power outages to Florida, leaving at least 17 dead.
- The cumulative impact of recent storms, including Hurricane Helene, threatens to destabilize Florida’s insurance market, which has only recently begun to recover.
- Rising reinsurance costs may lead to increased premiums for Floridians as insurers pass on higher rates.
Key quote:
“ ... we don’t expect Milton will reach the level of Hurricane Ian in 2022, which we estimated as a $50 billion to $60 billion insured loss. Ian is the second-largest U.S. natural catastrophe loss on record behind Hurricane Katrina.”
— Mark Friedlander, Insurance Information Institute
Why this matters:
Florida’s property insurance market is already the most expensive in the U.S. More frequent severe storms could further raise premiums and push insurance out of reach for many homeowners, affecting the state’s economy and housing market.
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