Tropical Storm Eta has arrived and left significant levels of flooding and some degree of wind damage in its wake. While this may have been expected, what homeowners may not be prepared for is the strong possibility of an insurance rate hike, even if they choose not to file a claim as a result of the storm.
The risk of maintaining its bottom line is more stable for a traditional insurance firm because it just needs to worry about a once-in-a-century case, like Hurricane Katrina. For homeowners and landlords, seasonal stability results in insurance premium stability.
Hence, if more hurricanes pile up, so does the insurance company’s insurance, supplied by corporations known as reinsurers — big international firms that provide financial backing for insurance companies themselves. And usually, half of the value of a homeowner’s contract is passed along to pay a reinsurer.
Florida enjoyed storm-free seasons from 2006 and 2015. With the 2017 hurricane season and the arrival of major storms like Irma and Michael, that changed significantly. With the high number of named storms in 2020 (nearly thirty so far), it is a trend that will seemingly continue.
This information is provided by Miami insurance attorney Alonso & Perez, LLP. Our areas of practice include bankruptcy, insurance litigation, foreclosure defense, immigration law, and more. Call 305-676-7545 to speak with one of our attorneys or an insurance lawyer Miami and receive a free consultation We look forward to working with you.
This information is provided for educational or informational purposes only and should not be construed as legal advice. The information is not provided in the course of an attorney-client relationship and is not intended to substitute for legal advice.