Drenching South Florida rains expected to cost insurers hundreds of millions

Forecasters predict this will be a very active year for tropical storms and hurricanes, which could send insurance rates for next year skyrocketing.
Rainy Florida
Posted at 10:50 AM, Jun 21, 2024

The start of hurricane season is already shaping up to be costly for insurance.

It all has to do with the torrential rainfall that brought flash flooding to areas of South Florida earlier this month. That system wasn't a named storm, but it did dump a ton of water that's expected to result in hundreds of millions of dollars in insurance claims.

Global reinsurance firm Aon is making that prediction based on the number of homes, cars and other properties damaged from the flooding that took place starting on June 11. Florida's Office of Insurance Regulation is requiring insurance companies to file reports on claims from that storm starting next week.

Related Story: NOAA expects 'extraordinary' 2024 Atlantic hurricane season

Forecasters predict this will be a very active year for tropical storms and hurricanes. National Weather Service forecasters at the Climate Prediction Center said last month they expect 17 to 25 systems will become at least tropical storms in 2024, with eight to 13 hurricanes and four to seven major hurricanes.

Although the official forecast would not result in a record year, this year's forecast marks the highest number of storms predicted in NOAA's official hurricane season forecast.

"This [hurricane] season is looking to be an extraordinary one," said Rick Spinrad, administrator of the National Oceanic and Atmospheric Administration.

Industry experts said if Florida gets hit by a storm that inflicts heavy damage, it could turn into bigger insurance rates next year for everyone in the state.

This story was originally published by Matt Sczesny at Scripps News West Palm Beach.