The 2018 hurricane season is in full swing, and so far it’s living up its destructive predecessor. The latest hurricane, Hurricane Michael, has officially made landfall in the Florida Panhandle, causing massive amounts of damage. According to many analysts, this is the strongest storm on record ever to hit the panhandle.
Hurricane Michael is the seventh hurricane of this Atlantic Season and is impacting thousands of people in the Florida Panhandle region. According to Florida Insurance Commissioner David Altmaier, an estimated 500,000 policyholders will be directly affected by this storm.
While the final cost of this storm won’t be tallied for a bit, CoreLogic has already released estimates, and they are not looking good. According to CoreLogic insured losses from Hurricane Michael will likely fall somewhere between $2 and $4.5 billion. It is worth noting that those estimates are not factoring NFIP losses at all.
The NFIP estimates that residential losses will fall between $1.5 and $3 billion, while commercial losses will be somewhere in the neighborhood of $500 million to $1 billion.
While these numbers may seem large, it is important to consider them within the context of the insurance market as a whole. Gary Marchitello, head of Property Broking, Willis Towers Watson spoke with the Insurance Journal about this, saying that “…even if Michael were to reach the $20 billion range in losses, the well-capitalized insurance industry would be able to ultimately absorb these losses…As we saw with Hurricanes H-I-M [Harvey, Irma, Maria] in 2017, $100 billion in insured losses did not really rock the market long term.”.
It will be interesting to see what the actual amount of losses ends up being. For now, all we can do is send our best to those affected, and try to educate as many people living in potential flood areas as possible to get the proper insurance coverage.
If you have any questions about your insurance policy, or want to inquire about a new one, we encourage you to reach out to the staff of TGS Insurance. Visit www.tgsinsurance.com to learn more.