FLORIDA
Aon Estimates Hundreds of Millions of Dollars in Losses From South Florida Flooding
OLDWICK, N.J. //BestWire// - Southern Florida insurers may have incurred hundreds of millions of dollars in losses related to torrential rainfall since June 11, according to Aon.
State Farm has taken in about 1,200 automobile claims since a tropical disturbance triggered the rain and flooding, spokesperson Michal Brower said. Most claims are for flood damage. The number could rise if forecasted rain materializes and as more drivers identify damage to their vehicles, said Brower.
State Farm is the third-largest homeowners and personal auto insurer in the state, based on direct premiums written in 2023, according to BestLink.
Aon said flood waters inundated numerous homes, vehicles and roadways. It said insured damages could potentially exceed hundreds of millions of dollars.
Urban coastal regions on the state’s east and west coasts were particularly hard hit. The rains came at the start of what is predicted to be an active hurricane season in the Atlantic.
As much as 20 inches of rain fell in parts of highly urbanized Miami-Dade and neighboring Broward, home to Fort Lauderdale, according to a statement from the governor’s office. Areas from the Florida Keys to West-Central Florida were at risk of flash flooding.
Gov. Ron DeSantis declared a state of emergency in those counties along with Collier, Lee and Sarasota counties on the west coast.
During a media briefing he said the state has experienced similar events throughout time, but the effects have risen with development. “As a tropical state there are things we deal with,” he said, focusing on state effects to mitigate damage to infrastructure.
“We don’t want our energy policy driven by climate ideology. When that happens people pay more and our energy is less reliable... Regardless of what you choose it isn’t going to prevent us from having tropical weather in tropical season... When we have disruptions because of a hurricane we get lights back on as quickly as possible,” DeSantis said.
State officials said residential damage from the flooding isn’t expected to trigger a federal disaster designation.
Dan Ward, atmospheric scientist and director of model development, Karen Clark and Co., said he anticipates an active hurricane season this year, especially in places such as Florida and Louisiana, because of “incredibly warm” ocean temperatures in the Atlantic and the projected transition to a La Niña climate pattern later in the summer (BestWire, June 3, 2024).
The five largest writers of all private passenger auto in Florida in 2023, based on direct premiums written, were: Progressive Insurance Group, with a 22.85% market share; Berkshire Hathaway Insurance Group, 21.12%; State Farm Group, 16.51%; Allstate Insurance Group, 10.28% and USAA Group, 6.95%; according to BestLink.
The five largest writers of homeowners multiperil in Florida in 2023, based on direct premiums written, were: Citizens Property Insurance Corp., with an18.57% market share; Universal Insurance Holdings Group, 8.47%; State Farm Group, 6.88%; Florida Peninsula Group, 4.88%; and Tower Hill Group, 4.35%, according to BestLink.
(By Renée Kiriluk-Hill, senior associate editor, BestWire: Renee.Kiriluk-Hill@ambest.com)