More than 173,000 insurance claims and growing have now been filed in Florida following Hurricane Milton, which is expected to cost insurance companies billions of dollars.
The big question: Could that have an impact on what residents pay for insurance? Home, flood and condo insurance are already difficult to get and keep in Florida, and many people worry these past two hurricanes could force prices to go even higher.
Fort Myers Insurance Agent Doug Nellans with The Insurancenter said it's easy to see how property owners would be concerned.
“However, it's a little too early to treat that as a foregone conclusion,” Nellans stated.
He said the industry and property owners may not know for sure whether rates will increase until the middle of next year.
“It takes insurance companies about a year to fully tabulate what their cost exposure is from a hurricane,” Nellans explained.
Mark Friedlander with the Insurance Information Institute said the big wild card is reinsurance rates.
“If the global reinsurance market decides to make adjustments for the 2025 hurricane season that will go a long way to where Florida property insurers need to set their rates,” Friedlander said.
Reinsurance provides insurance to the insurance companies. Milton is estimated to cost companies a combined $36 billion.
“Most likely the largest incurred loss will be for Citizens Insurance. Just based on its market share,” Friedlander said.
One out of five residents in Florida has a Citizens insurance policy.
“There is no indication that they will have a problem paying claims,” Friedlander clarified.
However, some residents are getting what appears to be a cancellation notice and Nellans said it's just the opposite.
“It prohibits insurance companies in the short term from dropping or cancelling homeowners,” Nellans explained.
Because of the storms, the state issued an emergency order forbidding companies from cancelling anyone. Nellans called it a good development, although there is still about a month to go in hurricane season.