WEST PALM BEACH, Fla. — This hurricane season has left insurance companies paying out claims, but industry experts say don’t expect it to lead to higher rates.
“Some people assume there’s a big storm that rates are going up in a few weeks,” Mark Friedlander of the Insurance Information Institute said. “It doesn’t work that way.”
Insurance companies, according to Friedlander, have enough reinsurance this year to absorb the costs of claims so far this year.
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Universal Insurance, based in Fort Lauderdale, recently posted a $16.2 million loss for the third quarter.
But Friedlander said decisions on rates are a slow process and usually not a decision that is made quickly.
“Our assessment is there’s just not enough data at this point,” Friedlander said. “We’ve seen limited results from some of the publicly traded Florida insurers, but we don’t have enough data to determine where future rates may head as a direct result of this year’s hurricanes.”
He also added that close to 50 private insurers have committed to holding rates or lowering them in 2025 in Florida.
Matt Sczesny is determined every day to help you find solutions in Florida’s coverage collapse. If you have a question or comment on homeowners insurance, you can reach out to him any time.
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