2022
How the 2022 Hurricane Season Whipped Up Our Insurance Premiums
Jim Jenkins / 0 Comments /As we all take a deep breath now that the 2022 hurricane season has passed, it’s more than debris we’re left picking up. That’s because the severity of the hurricane season has pushed home insurance premiums to an all-time high.
With Florida still reeling from the 14 named storms of 2022, experts are now predicting that homeowner insurance will spike by between 30% and 40%, leaving many folks feeling powerless against the insurance companies.
At Jenkins Law PL we’re looking at why insurance companies are likely to hike prices, and what this means for homeowners in the Sunshine State.
Let’s recap
The 2022 Atlantic Hurricane Season was a doozy. When the season ended on November 30, we all had the chance to look back on the devastating events.
The damage caused by the 14 named storms will be felt for years. Most notable in our memories, of course, are Hurricanes Ian, Nicole, and Fiona, because they wrecked so many homes in Florida and sadly took lives.
With this chaos comes extreme cost. Hurricane Ian was a category 4 that caused tens of billions in damage. Florida Emergency Management Director Kevin Guthrie believes that the 2022 Hurricane season will be the most expensive hurricane season in the state of Florida. Guthrie said that it’ll take 7 years for the damage caused to be dealt with because vendors need to be paid, issues settled, and final payment made to FEMA.
Citizens Property Insurance estimates that the 2022 Hurricane Season will cost $3.8 billion, making it the costliest disaster in the state of Florida
The Insurance Crisis
If you’re a homeowner in Florida, it’ll come as no surprise to hear that we’re paying the highest premiums in the US. The Insurance Information Institute tells us that’s almost three times the national average. Now, as if that wasn’t steep enough, Florida premiums are rising at a faster rate (33% to be exact) each year compared with the typical American increase of 9%.
You might ask why. There are three reasons:
- Florida is the most hurricane state in the US
- There’s a high level of litigation
- Increased reinsurance costs (smaller insurance companies often rely on reinsurance to pay out claims following a major event, and costs get passed on to customers.)
This all means that the insurance market is going through a crisis, and costs are being driven up. This year, several insurance companies declared insolvency, some have dropped policies, and others have stopped writing new policies.
This insurance crisis is particularly worrying for those whose homes have older roofs. Matthew Carlucci is an insurance agent in Florida, and he told First Coast News “homes with older roofs, they’re going to get hit the hardest. If your roof is new, the rate increase is going to hit you the least. But nevertheless, insurance companies are still going to raise their rates across the board.”
On Your Side
If you’re a homeowner who’s likely to make a claim now that the hurricane season has passed, keep the following in mind:
- Take photos of any damage to your property and its contents caused by water damage, wind, or flooding.
- Check your home inventory for missing/damaged items, or make a list of what was lost in the storm
- File your claim as soon as you can
We hope that you escaped the wrath of this deadly hurricane season. We’re grateful to our community for stepping up during this difficult time.
If you’re battling the insurance companies and becoming more and more frustrated with their tactics of delay, underpay, and denial, then we can step in and represent you. We can fight for the compensation you deserve.
We’re a dedicated team of insurance claim lawyers in Florida and we’re on your side. Reach out and we can get your home restored to its former glory.
