Milton won't be a disaster for Florida's insurance market, officials say

TALLAHASSEE — State officials are confident that Hurricane Milton will not be a catastrophic blow to Florida's recovering insurance market, despite analysts' predictions.

The state is still assessing the damage, however Category 3 storms range from – which At least four people were killed – property included The damage was not as severe as people expected.

“It appears that this once-in-a-lifetime disaster was largely avoidable,” Office of Insurance Regulation Commissioner Mike Yaorski said in a statement Thursday.

“The market is prepared to weather the effects of this storm effectively,” he added, pointing out Recent reforms include making it harder to sue insurance companies.

On Wednesday, ratings agency AM Best wrote that Milton “poses a significant threat to the Florida property insurance market,” because in part furniture and Other debris is left outside Following Hurricane Helen Two weeks ago could become destructive airborne projectiles. This threat has not yet materialized in Tampa Bay.

Wall Street analysts forecast the storm could cause between $50 billion and $175 billion in insured losses, Barron's reported. Those amounts could crush some of the smaller insurance companies that dominate Florida's market, leading to more volatility and future rate hikes.

When asked about those estimates Thursday morning, Gov. Ron DeSantis pointedly dismissed them.

“How would a Wall Street analyst know? It was dark all day,” DeSantis said. “Give me a break on some of these things.”

Concerns also arose before Milton Impact on state-run civil property insurance, Florida Largest insurer with nearly 1.2 million home owner policies

About 20% of these policies are in Sarasota, Manatee, Pinellas and Hillsborough, amounting to about $88 billion in exposure for citizens. In the county in the forecast cone of storms.

If citizens don't have the money to pay the claim, it can assess everything from auto to pet insurance to pick up the tab. but Citizens spokesman Michael Peltier said in a statement Thursday that it won't be needed after Milton.

“Citizens is in a stronger financial position and able to handle all claims without the need for surcharges or assessments,” Peltier said.

Homeowners policies cover damage from wind, fire, water leaks, theft and other issues — but not flood damage. That damage is covered by the federal national flood insurance program or private flood policies.

That's a major reason why Hurricane Helen, which caused widespread flooding in Tampa Bay, was expected to be a “manageable event” for Florida insurers. That difference may also play a part in Milton's handling of the loss.

Florida's insurance market has seen several ups and downs since 1992's Hurricane Andrew devastated the industry.

The latest crisis began after the state's major hurricane drought ended in 2017 Since then, premiums have skyrocketed and companies have withdrawn or closed

The initial response from Republican lawmakers and DeSantis was to make it harder to sue insurance companies.

As the market begins to stabilize, many companies have requested no rate hikes or small cuts this year. On Thursday, regulators announced that USAA is “reaffirming” its commitment to doing business in the state.

But homeowners' policies haven't fallen meaningfully, putting pressure on lawmakers who say property insurance is their main constituent issue.

On Wednesday, state Rep. Chip LaMarca, a Broward County Republican, posted on X that he wants to work with lawmakers in hurricane-affected areas to “dramatically change how we do insurance in Florida.”

“I don't care what the solution is, but I want to find one for every Floridian,” he wrote. “We must fix it.”

Anyone who needs to file a civil claim can do so through my policy Customer Portal or by calling Citizens at 1-866-411-2742.

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