While the magnitude of the damage caused by Hurricane Idalia is unknown, and after the impact of Hurricane Ian that caused more than 100 million dollars in damage in Florida last year, the crisis in the insurance industry is growing property.
As homeowners across Florida face huge increases in their premiums, Idalia’s arrival will see plenty of claims when some of Ian’s have yet to be paid.
As Hurricane Idalia slammed into Northwest Florida, concern was growing across the state – over the plight of the insurance industry.
Vidal Sainz, an insurance expert, confirms that “we are facing the worst crisis in 54 years in this industry, extraordinary costs, increases of 300% and 400% with no sign of improvement in the future.”
The fact is, Floridians are paying the highest homeowners insurance rates in the country, and there is no relief, despite several laws passed by state lawmakers during two special sessions last year.
Seeing the force of Hurricane Idalia, there is great concern that the time comes when Citizens insurer does not have enough funds to pay hurricane claims and could impose an additional bill on all its policyholders.
“They can put assessments which are in 3 levels that can reach up to 45%”, of the cost of your policy warns the insurance expert.
The state representative and next president of the house does not expect that it will come to that and points to the approved reforms.
“The goal for us was in two parts. The first that we were going to have more competition that more insurance companies were going to enter the state of Florida and we achieved it,” says Danny Pérez, Republican state representative.
If you need help finding the whereabouts of a loved one after the hurricane, you can call this number.
In the last month two additional insurance companies have been approved to operate in the state. “And the second thing is that the premiums are beginning to at least stabilize and in the conversations that I have had with the insurance companies we hope that in the next twelve months we will see the premiums stabilize.”
Lawmakers say it will take a while. “When the market is stable and there is more competition, people will see a reduction because they will see more options from different companies that provide this type of service,” says Ana María Rodriguez, a Republican senator from Florida.
But many homeowners are running out of patience and money. The legislators emphasized that it is still too early to know the consequences of Hurricane Idalia on insurance. The House of Representatives begins meeting in committees in September and the State Senate in October. The legislative session begins in January and they assure that more measures to seek relief will be a priority.
2023-08-31 02:14:26
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