Climate Change and Rising Expenses in Hurricane-Prone Florida
Climate change intensifies hurricanes and flooding in Florida, leading to soaring property insurance rates and high reinsurance costs for local insurers
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As climate change intensifies hurricanes and flooding in Florida, residents are grappling with mounting financial challenges. With the US hurricane season approaching, the state faces a heightened vulnerability to storm-related damage, resulting in soaring property insurance rates and an outsize impact on the economy. The aftermath of Hurricane Ian alone cost insurers approximately $63 billion, and damages equated to almost 4% of Florida's annual gross domestic product since 2017.
Here are five ways climate change is driving up expenses for Floridians:
1. Fast-rising property insurance rates, currently averaging $4,231 annually, nearly triple the national rate.
2. The struggle of local property insurance businesses due to high reinsurance costs.
3. Increasing reliance on Citizens Property Insurance Corp., the state-backed insurer of last resort.
4. The need for separate flood protection policies for a significant number of underinsured residents.
5. Rising car insurance costs due to frequent weather-related accidents. These challenges are putting immense strain on Florida's residents and economy, highlighting the urgency of addressing climate change and its impacts.
