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How did Hurricane Ian Affect Florida’s Housing and Insurance Market?

The magnitude of Hurricane Ian's devastation threatens to disrupt Florida's insurance and real estate markets, as displaced homeowners submit a record number of claims for damaged or destroyed properties. According to disaster modeling agencies, privately insured damages from Ian are likely to total $67 billion, excluding flood insurance. This is consistent with prior projections and places Ian, which hit Florida, on par with Hurricane Katrina which was the costliest disaster in US history.

And it's nearly double the insured damages from Hurricane Andrew in 1992, which was the most expensive hurricane to hit Florida and bankrupted many while forcing others away.

Data now show that Ian is part of a trend; climate change is making hurricanes and other natural disasters more destructive and driving up the cost of house insurance to the point where it is beyond reach for many individuals. Increased severity of hurricanes, flooding, and wildfires in regions such as Louisiana and California are prompting insurers to withdraw from those markets.


Aftermath

The aftermath of major storms such as Hurricane Katrina and Hurricane Ian demonstrates how climate change is destroying the financial foundations of modern American society. Banks will not grant a mortgage without insurance; most potential homeowners cannot purchase a property. With fewer purchasers, housing values decrease, and new construction might stall. Homes on the beach have characterized the Florida coast for years, yet they are the most vulnerable to serious and catastrophic flooding.


Impact on Insurance Market

Property insurance businesses have been fleeing the state in droves, jeopardizing the market. Property insurance, which is subsidized by the government, surpassed 1 million policies in August for the first time since 2014.

Hurricane Ian's power, magnitude, and devastating impact will result in a high number of insurance claims around the state, and officials have made efforts to speed up that process.

In the past two years alone, 13 Insurance companies have gone bankrupt in the Florida market.


Hurricane Ian's power, magnitude, and devastating impact will result in a high number of insurance claims around the state, and officials have made efforts to speed up that process.


Property insurance industry

Even before Hurricane Ian, Florida's property insurance industry was in disarray. For starters, Florida has an inordinate amount of litigation. Over 107,000 property claim cases were filed in Florida last year, accounting for 81% of all lawsuits filed in the United States!

Untrustworthy roofers have been convincing homeowners to sign an assignment of benefits (AOB) to the contractor. An AOB grants the contractor all claim rights, allowing him to bill your insurance carrier for an excessive amount for a roof replacement that, in most situations, would not have been considered a valid loss. If the insurance denies the claim regularly, the contractor might sue your insurer without your awareness.

Because of these two issues, at least six Florida property insurers have gone out of business this year, and 27 others have been placed on the Florida Insurance Regulator's watch list due to poor financial condition.

Hurricane Ian is expected to be the second-largest disaster loss in US history. Insured losses are predicted to exceed $60 billion. There has only been one larger disaster on record, Hurricane Katrina in 2005, which resulted in insured losses of over $90 billion in today's dollars. So, it gives you an idea of Ian's destruction scale and its effects on the Florida property insurance market

  1. Make a claim right away

The most essential thing for residents to do now is to assess the damage to their homes and properties as soon as it is safe. It is important to make a claim as soon as possible if your policy covers the damage.


2. Check your policy for further protection

Most insurance plans reimburse additional living expenses incurred if you can't reside in your house.


3. Be wary of scammers

Following a disaster, homeowners should be wary of scams and solicitations. Disaster areas are frequently overwhelmed with conspicuous persons, firms, and contractors soliciting homeowners when they are susceptible. Always check that the professional you are speaking with has a valid license.


4. Hire a Public Adjusters

They can assist you if your house or company has been harmed or your claim has been refused. We will work with the insurance carrier to obtain the money you deserve for home repairs. Allow Santos Public Adjuster to handle your insurance claim. It is never too late to seek professional assistance.


Santos Public Adjusters serves all South Florida counties. The state of Florida has licensed and bonded our public adjusters. We are equipped to handle business and residential claims of any size! We have successfully resolved hundreds of disputes for our customers.


Sources:

Insolvencies in Florida - https://figafacts.com/category/insolvency/page/1/

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