Hurricanes Helene and Milton Impact Florida Insurance Market

Florida is facing a severe insurance crisis as recovery efforts continue after Hurricanes Milton and Helene, with average home insurance premiums exceeding $11,000, the highest in the nation. The storms have exacerbated existing challenges, leading to insolvencies among smaller insurers and anticipated increases in rates due to the significant damage incurred. Many homeowners are not covered by flood insurance, with estimates showing only about 35% of high-risk properties are insured, prompting calls for better incentives to encourage coverage. The estimated insurance losses from Hurricane Milton alone could range from $30 billion to as high as $150 billion, straining the profitability of insurers, particularly in regions not typically affected by hurricanes. Additionally, the hurricanes have disrupted the supply of IV fluids due to damage at a key manufacturing facility, impacting healthcare delivery across the country. As the Southeast grapples with the fallout from these storms, the need for effective policy responses and insurance reforms is critical.