The Real Deal Miami

Florida can weather next big hurricane, insurers say

Experts agree hurricane-free years have lowered the risk of catastrophic loss

December 01, 2014 05:26PM

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Hurricane Sandy

Hurricane Sandy

The end of the hurricane season Sunday marked Florida’s ninth year without a hurricane – years that have given insurers time to rebuild from the damages caused in 2004 and 2005.

Experts agree that the hurricane-free years have lowered the risk of the sort of catastrophic loss the area has seen in the past. Hurricane Wilma, for example, caused a $1.7 billion deficit after it hit South Florida in October 2005. Hurricane Andrew caused $25 billion in damages in 1992, according to the Sun Sentinel.

Sam Miller, executive vice president of the Florida Insurance Council, told the paper the state is now better positioned than anywhere else to handle a major hurricane.

Florida’s Hurricane Catastrophe Fund has increased its available cash and lowered its potential exposure, making it financially strong for the 2015 storm season. Citizens Property Insurance Corp. imposed a storm assessment surcharge on policyholders following Hurricane Wilma amounting to $2.9 million, the Sentinel reported. Two surcharges have been set to end earlier than planned. [Sun Sentinel] –Katherine Kallergis

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