The strength of the recent super storm, Hurricane Sandy, caused extensive damage in New Jersey and New York, among other states along the Eastern seaboard. It is estimated that those damages could reach up to $50 billion by the forecasting firm, Epequat. The total cost to insurance companies could come in at between $10 and $20 billion. If actual damages meet these estimated figures, it would make Hurricane Sandy the second most costly U.S. storm after Hurricane Katrina in 2005.
While many of the same insurance companies that insure properties in Florida, also insure properties in the states that were hit by Sandy, it is unlikely that Florida’s property insurance rates will increase as a result. Insurance rates in Florida went up after we were hit by eight hurricanes between 2004 and 2005 because those storms directly impacted us here in Florida. Florida’s property insurance rates are not supposed to be affected by what happens in other parts of the country. However, almost all insurance companies are reinsured by larger insurance companies that have a nationwide or global reach. Storms like Sandy are a good reminder to us in Florida that we should review our insurance policies each time we renew to ensure we have enough coverage and to stay up to date to any changes in our property insurance laws.