Hurricane Ian Expects Billions of Property Damage Claims
Hurricane Ian’s slow land speed means that it took longer to crawl across Florida, causing more damage and destruction – wind, rain, power lines, and homes. As a result, many homeowners have turned to state-run insurers to cover their losses. In 2002, the Florida legislature created the Citizens Property Insurance Corp. to help Floridians without homeowners insurance. The company has $6 billion in surplus. Still, it’s expected to face up to 225,000 claims totaling $3.8 billion.
Hurricane Ian caused widespread flooding
Hurricane Ian, which made landfall in Florida’s southwest, has left homes and neighborhoods underwater. The storm has knocked out power to more than two million customers throughout the state, and caused widespread flooding in the process. A storm surge of up to 12 feet has submerged cars and knocked over homes, and left dozens of people without electricity and shelter. Some of the areas hardest hit by Hurricane Ian are still under water, and authorities are taking addresses from those who have been displaced or whose homes have been flooded.
It destroyed thousands of homes and businesses
The damage caused by Hurricane Ian is staggering. It has already left dozens of people dead and thousands of homes and businesses in ruins. The storm pounded coastal Florida and western Cuba and has caused catastrophic damage to both states. Many of those affected are still displaced.
It caused major travel disruptions
Hurricane Ian has been downgraded from a Category 5 hurricane and is now a tropical storm, but it is expected to affect travel in Florida tomorrow and Wednesday. It wreaked havoc in Cuba earlier this week, causing massive power outages and flooding. The US National Hurricane Center is warning of life-threatening storm surge and damaging winds in Florida. More than 2.5 million people have been evacuated from areas in its path.
It could cost insurers up to $32 billion
Hurricane Ian is expected to cause severe damage to Florida, with insurers expecting claims to total as much as $32 billion. According to the National Oceanic and Atmospheric Administration, this storm could be the most expensive tropical cyclone in U.S. history. While the final numbers will likely take weeks to determine, the damage to property is expected to be massive.
It will be the “first test” for $2 billion in reinsurance
Hurricane Ian will be a major test for Florida’s new state-run reinsurance program. This program is designed to provide backup insurance to shippers in times of natural disaster. Currently, the state’s reinsurance fund covers up to $2 billion in losses.
It killed more than a dozen people
The aftermath of Hurricane Ian is still being felt across the mid-Atlantic states and the Carolinas. Despite being downgraded from a Category 4 hurricane, Ian continues to dump heavy rain on those areas. Direct Relief is in contact with health facilities in the affected areas and has already dispatched dozens of medical shipments. More support is expected over the next few days.