Prediction of active hurricane season could increase insurance rates, expert says
It’s not the kind of news that people in flood-prone areas want to hear. Colorado State University is predicting an extremely active 2024 hurricane season, which experts believe could significantly increase homeowner insurance rates in Florida. Mark Friedlander from the Insurance Information Institute said this could impact the cost of reinsurance for insurance providers. However, he noted that eight new property insurers have been approved to write property insurance in Florida this year, which could help Florida homeowners shop for lower rates.
Published : 4 weeks ago by Jeff Patterson in Weather
TAMPA, Fla. (WFLA) — Colorado State University is predicting an extremely active 2024 hurricane season and experts say that prediction alone could impact homeowner insurance rates in Florida.
It’s not the kind of news that people in flood-prone areas want to hear.
Shore Acres was hit by flooding three times in less than six months and residents there are still trying to recover.
“The one, obviously came into the house and the second one came into the garage and ruined a bunch of tools,” said Daniel Cholvin.
He and his wife are still working to the flood damage.
Mark Friedlander with the Insurance Information Institute said the CSU prediction of an extremely active hurricane season in the Atlantic Basin could impact insurance rates.
“Now that we have a very ominous forecast from Colorado State University, it is time for Floridians to prepare and potentially this could lead to higher rates,” said Friedlander.
He said the early prediction will impact the cost of reinsurance for insurance providers.
“With a forecast of this magnitude coming out so early, there’s a good chance we are going to see rate increases for reinsurance, meaning property insurers pay more for their reinsurance coverage. That is a pass along cost to consumers,” said Friedlander.
However, he says there is some good news on the horizon.
“We have seen some very positive signs in the Florida property insurance market in recent months. Eight new property insurers have been approved to write property insurance in Florida this year, something we haven’t seen for many years. These companies want to come to Florida because they see it as an opportunity to write profitable business,” said Friedlander.
He says the new companies will help Florida homeowners be able to shop for lower rates.
Topics: Hurricanes