We are already four weeks in to the years hurricane season and the estimating game that pertains to Florida fl homeowners insurance is underway. Over the past couple of years the sunshine state has been spared by the wiles of Mother Nature and there have been NO hurricanes reported as having hit the shores in at least 5 years. However, experts are tipping things to change over the coming weeks and months and there is a 72% chance that Florida will be visited by at least one of the several storm systems that are currently being brewed in the Atlantic.
Regardless of whether or not Florida takes first prize in the hurricane lottery again this year, there are many reasons why home insurance dues are bound to rise across the state:
1. Reinsurance has been hit pretty hard by disasters across the nation, ie: Non – Floridian. The term reinsurance refers to the insurance that our beloved insurers take out to cover themselves. Insurance providers must also protect themselves from loss and the cost of the reinsurance is likely to be recovered from policy holders.
The recent bout of tornadoes across Missouri and Alabama have siphoned a whopping 70 billion US dollars from the reinsurers’ purses and these losses need to be recouped. Therefore a 10 percent rise in the reinsurance arena is imminent.
2. Newly Projected Hurricane Models – Insurers commonly estimate risk and the exposure to risk by forecasting storm damage via simulation. The newly devised model has revealed a higher risk for insurers of property in Florida and this increase will be passed on to consumers.