With the California wildfires now expected to cost insurance companies more than $40 billion, many people in Southwest Florida are worried that could impact rates in the Sunshine State.
“The insurance industry is facing a lot of suits and money being spent to replace homes and damaged properties with all of these natural disasters we're facing. So, it's a real concern,” said Michael Irigoyen.
Irigoyen, of Fort Myers, is one of those who sustained heavy damage from Hurricane Ian over two and a half years ago and he is still fighting to be paid everything he is owed.
“After Hurricane Ian, I've faced a lot of trouble with the insurance company to get payback for all of the damage I sustained,” Irigoyen explained.
Like many, he has seen his home insurance rates skyrocket, and now he fears they could go even higher as insurance companies begin to pay out billions in California.
Mark Nellans, with The Insurancenter in Fort Myers, explained that Florida insurance carriers buy into a bigger pot of re-insurance.
“Every state does it, and every country does it,” Nellans said.
He described it as a global insurance to protect the insurance companies. He said it’s unlikely the wildfires would have little overall impact.
Mark Friedlander, with the Insurance Information Institute, said one event does not change the global market picture and he explained each state assumes its own risks.
“Risk is rated at a local level. In fact, national insurers who write homes in California have different subsidiaries operating in California compared to Florida,” Friedlander explained.
Simply put…
“Florida homeowners will experience zero impacts from the Los Angeles fires,” he stated.