Florida’s Hurricanes Could Push Up Insurance Rates

October 19, 2017

Florida’s insurance commissioner said homeowners’ policies could face some “upward pressure,” as he was asked Tuesday about the impact on rates from this year’s series of natural disasters.

Commissioner David Altmaier said the state Office of Insurance Regulation hasn’t seen any indications that insurers are unable to meet claims from Hurricane Irma, which hit the state Sept. 10 and Sept. 11. But he said with Irma, Hurricane Harvey in Texas, Hurricane Maria in Puerto Rico and devastating wildfires in California, there may be a trickle-down effect from companies that provide backup insurance to insurers.

“We would expect some upward pressure on reinsurance rates that might impact the direct rates that Floridians pay, but at this point in time the precise number is a little early to predict,” Altmaier told Gov. Rick Scott and the Florida Cabinet. Altmaier’s comments came after his office decided against extending a temporary freeze on insurance policy cancellations and non-renewals. The freeze ended Sunday.

Altmaier said Tuesday — after his Cabinet appearance — that there was little sign that an extension was warranted.

“We haven’t seen anything that would indicate that people haven’t had the chance to get back to their homes as this point and make a claim,” Altmaier said. In the order issued last month, insurers were barred from canceling or non-renewing policies unless policyholders made written requests. A separate part of the order, which remains in place, imposed for 90 days a similar freeze but only for property that had been damaged by Irma.

As of Friday, 747,534 claims have been filed from Irma, worth an estimated $4.94 billion in losses, according to the Office of Insurance Regulation.

by The News Service of Florida

Comments

5 Responses to “Florida’s Hurricanes Could Push Up Insurance Rates”

  1. don on October 20th, 2017 5:50 am

    I think the insurance companies,home and auto,should be required to give at least a 25% rebate of what you paid in premiums if no claims in a 5 year period…

  2. Wilykyote on October 20th, 2017 4:49 am

    I’m not in the Insurance business……but how can the Insurance Companies
    afford the claims ? I’m talking mostly the Auto Insurance end of the Insurance
    business. Vehicles fold-up like tin cans …..injuries appear to be less severe but
    the damage to vehicles appears to be total losses. Then consider the cost of today’s
    autos and the preponderance of DISTRACTED driving and not to mention the
    careless and aggressive , law breaking driving we all see on our roads. i don’t know
    how the Insurance Agents can get any sleep !

  3. EP on October 19th, 2017 11:00 am

    agree with Dan, only difference between them and someone who commits a armed robbery is they don’t use a gun

  4. Dan on October 19th, 2017 9:41 am

    Pay the insurance company for years nothing happens they win. Pay the insurance company for years and something does happen they raise the rates make the same amount or more money they still win. Something almost criminal about those rules

  5. retired on October 19th, 2017 7:04 am

    rates always go up do they ever go down??????? After 10 plus years with no hurricanes the rate should stay the same. They will find a reason to go up.

Written by William Reynolds · Filed Under News