FORT LAUDERDALE, Fla. – Florida's disjointed property insurance system that relies almost exclusively on small and midsize companies will take a multi-billion dollar loss from Hurricane Michael, but has sufficient reserves and backups that providers should be able to pay claims without problems.
Analysts estimate private insurers will pay $6 billion in claims for wind and storm surge damage to residential, commercial and industrial properties and vehicles.
Major national players like State Farm write few if any homeowners policies in Florida because of the high risk of hurricane losses, leaving the market to smaller companies and the state-created insurer of last resort, Citizens Property.
Insurance analyst Fitch Ratings said the Florida companies can withstand storm like Michael that hit sparsely populated areas of the state, but would struggle is a major storm hit Miami or another big city.
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