Hurricane Idalia lashed Florida’s Nature Coast with unrelenting wind, rain and storm surge. According to the Insurance Information Institute, early insurance losses for the powerful storm are believed to be about $10 billion, a number that is much lower than the $60 billion in losses caused by Hurricane Ian last year.
“It’s a significant storm event for Florida and the Southeast, but not on the scale of Ian,” said Mark Friedlander, a spokesperson for the Institute.
Friedlander said Idalia hit a less populated area than Ian. But the damage caused by rising water during Idalia could pose the biggest financial threat to survivors looking to rebuild.
“It’s going to be very challenging,” he said.
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The percentage of homeowners with flood insurance in some of the hardest hit areas was about 5%, much lower than the state average of 18%, Friedlander said.
“These rural communities have very low take-up rates,” he said. “In most cases, homeowners that have flood losses are not going to have coverage for that.”
Even if flooding is caused by a hurricane, the resulting damage will not be covered by a regular homeowner’s insurance policy.
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“The only way to have full protection from hurricanes is to have both levels of coverage,” he said. “A lot of people think, 'We bought property insurance and it includes windstorm damage for hurricanes, I am protected.' You’re partially protected. There’s no guarantee the storm will only bring wind damage.”
That’s why Idalia and the major flooding event we saw unfold in Broward earlier this year should serve as a warning to homeowners who don’t have a separate flood policy, he said.
“We still have so many homeowners here in Florida, 82%, that don’t have a flood insurance policy,” he said. “All they need to do is take a look at what’s happening around them.”
If you are thinking of getting flood insurance, ask your agent to shop around for coverage. But keep in mind that there’s usually a 30-day wait period before the coverage kicks in.
As far as how Idalia could impact car insurance premiums, Friedlander said it was too soon to know for sure. But Florida has already seen the highest year-over-year increase of any state at $421, and the average car insurance premium in Florida is $3,121, which is well above the national average of $2,014.
