PEMBROKE PARK, Fla. – Helene and Milton are two names many Floridians won’t soon forget as they recover from the major hurricanes, with many hoping to rebuild.
But will the two major storms, coming essentially back-to-back, sink Florida’s property insurance market?
Mark Friedlander from the Insurance Information Institute said, “The hurricanes we’ve seen to date, prior to Milton, were very moderate loss events. We’re talking $1-2 billion.”
Which is where insurance steps in, if you have it. Friedlander said it’s important to note much of the damage in Florida is from flooding.
“That’s not property insurance,” he said.
And the Florida property insurance market, he said, “is in its strongest financial position in many years.”
“No companies are planning to leave Florida. In fact, companies are coming into Florida now because the market conditions have improved so much due to the legislative changes. We have nine new companies in Florida this year,” Friedlander said.
He also says the global reinsurance market — essentially insurance for insurance companies — is also in good shape.
“For those that are speculating about companies going insolvent, companies just pulling out of the market, we do not see that happening based on the 2024 hurricane activity we’ve experienced here in Florida,” Friedlander said.
Which, besides seeing the storm pass, brings another sigh of relief.
Friedlander said Citizens — the insurer of last resort — is reducing the number of its policyholders by the tens of thousands, which he says is positive because its policyholders are going to private insurers.
The key takeaway: flood insurance, albeit not cheap, is necessary in Florida, in a flood zone or outside of one.
Friedlander said it’s better to have it and not need it, than to need it and not have it.