South Florida floods to incur hundreds of millions of dollars in losses

South Florida floods to incur hundreds of millions of dollars in losses – Aon | Insurance Business America

Catastrophe & Flood

South Florida floods to incur hundreds of millions of dollars in losses – Aon

Third-largest insurer’s claims have exceeded more than a thousand already

Catastrophe & Flood

By
Kenneth Araullo

Southern Florida insurers may have sustained hundreds of millions of dollars in losses due to torrential rainfall since June 11, according to Aon.

State Farm has received approximately 1,200 automobile claims following the tropical disturbance that caused significant rain and flooding, spokesperson Michal Brower said. Most of these claims are related to flood damage.

According to AM Best, Brower noted that the number of claims could increase if additional forecasted rain occurs and as more drivers discover damage to their vehicles.

State Farm is the third-largest homeowners and personal auto insurer in the state based on direct premiums written in 2023.

Aon reported that floodwaters affected numerous homes, vehicles, and roadways, with potential insured damages reaching hundreds of millions of dollars.

Urban coastal regions on Florida’s east and west coasts were particularly impacted. The heavy rains came at the onset of what is expected to be an active hurricane season in the Atlantic.

Up to 20 inches of rain fell in parts of highly urbanized Miami-Dade and neighboring Broward counties, which include Fort Lauderdale, according to a statement from the governor’s office. Areas from the Florida Keys to West-Central Florida faced risks of flash flooding.

The emergency has caused Gov. Ron DeSantis to declare a state of emergency in those counties, along with Collier, Lee, and Sarasota counties on the west coast.

During a media briefing, DeSantis said the state has experienced similar events in the past, but the impacts have increased with development. He emphasized the state’s efforts to mitigate damage to infrastructure.

“As a tropical state there are things we deal with,” he said. “We don’t want our energy policy driven by climate ideology. When that happens people pay more and our energy is less reliable… Regardless of what you choose it isn’t going to prevent us from having tropical weather in tropical season… When we have disruptions because of a hurricane we get lights back on as quickly as possible.”

State officials indicated that residential damage from the flooding is not expected to trigger a federal disaster designation.

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