Hurricane Milton’s impact on Florida’s homes and properties is set to push U.S. insurance claims over $100 billion for the fifth year in a row. While Florida avoided the worst-case scenario, estimates from Fitch Ratings suggest significant insured losses that could reshape the property insurance market once again.

Insurance Claims Reach Record Highs

According to Fitch Ratings, Hurricane Milton’s insured losses will likely range between $30 billion and $50 billion, marking the largest insurance event since Hurricane Ian in 2022. CoreLogic’s estimates are slightly lower, forecasting insured losses between $17 billion and $28 billion. Total damage, including uninsured losses, could reach as high as $34 billion.

This comes after Hurricane Helene caused up to $17.5 billion in insured losses across 16 states earlier in the year. With these back-to-back disasters, the total insured losses from weather events in 2023 are set to surpass $100 billion yet again.

Ripple Effects on Home Insurance

As insurance claims surge, the effects are felt far beyond the immediate disaster zones. Insurance companies carry policies known as reinsurance, which protect them from significant losses during catastrophic events. However, as reinsurance costs rise due to increasing payouts, homeowners nationwide may face higher premiums.

Home insurance premiums have already seen a steep rise, increasing by 34% between 2018 and 2023. While Milton’s impact won’t devastate the insurance industry, it adds pressure to an already strained market, particularly in high-risk areas like Florida.

Florida’s Struggling Insurance Market

Florida’s home insurance market is already the most expensive in the country, with average premiums more than double the national rate. Milton, which made landfall as a Category 3 hurricane, avoided a direct hit on Tampa, averting a potential $100 billion disaster. However, the storm’s damage will still exacerbate Florida’s precarious insurance landscape.

Fitch analysts predict that Milton’s impact may lead to higher premiums, but the industry might not see the sharp price increases of past years, as pricing has become more balanced. Still, Florida remains exposed should another hurricane hit before the season ends.

Looking Ahead: The Future of Home Insurance

With the increasing frequency of severe weather events, experts expect continued pressure on the insurance market. Rising costs, driven by factors such as climate change, more expensive rebuilding, and a growing population in high-risk areas, suggest that homeowners may face further premium hikes in the years to come.

‍