Hurricane season’s scorecard
Bottom Line: This isn’t just the week of Thanksgiving or the last week of November. It’s also the end of hurricane season. While the season turned out to be active with 18 named systems, they mostly stayed away from us. In fact, had it not been for Dorian’s destruction in the Bahamas, we might be talking about near record low impact from the Atlantic Hurricane season. But sadly, for those in Dorian’s path – it most certainly wasn’t the case. The impact for them is clearly 100% and as bad as it’s ever been. What I’m getting ready to share isn’t meant to suggest their suffering is some how less significant, but it is good news for pretty much everyone else.
The Atlantic hurricane season caused $13.9 billion in damage, mostly coming from Dorian’s impact. That’s down from $50 billion last year and $220 billion during the record setting damage in 2017 that featured Irma, Harvey and Maria. That’s great news for those not in Dorian’s path, the insurance market and ultimately all of us in hurricane prone areas carrying insurance. Adjusted for inflation the average cost of damage during hurricane season historically is $21.6 billion. Another way of looking at the hurricane season this year, despite above average activity, the destruction caused was about 36% less than the average year.
That should lead to a healthier insurance market, more options for South Floridians next year and more competitive prices for home insurance. Here’s to hoping this year marks the start of a more positive trend of less destruction. After the crazy 04’-05’ cycle, Florida went more than a decade without being hit by a hurricane. Maybe the 2020’s can be hurricane free? It’s a happy thought anyway.