Photo: Getty Images
Florida’s No Longer Top 3 In Hurricane Risk
Bottom Line: Hurricane seasons change but one thing that hasn’t is the insurance industry’s depiction of Florida as the riskiest state in the nation for potential claims. And the top reason is of course the threat from hurricanes. And indeed, since the onset of the official tracking of the Atlantic Hurricane season in 1851, Florida has been stuck by more hurricanes than any other state – 120. However, Florida’s hardening over the years – especially with the onset of the Miami-Dade Hurricane building code - appears to have significantly bent the curve of the cost of hurricane related damage in our state.
A recent Moneygeek analysis of the actual expense of annual hurricane damage per capita turns the narrative of hurricane risk around considerably. According to the findings:
- Louisiana has the highest annual expected hurricane losses per capita
- Texas has the most annual hurricane losses expected
- Mississippi’s hurricane risk is second with automotive liability, a key cost factor with about half of Mississippians not having comprehensive auto insurance
- Florida is 4th for annual per capita hurricane expense
Not only is Florida no longer in the top three for hurricane costs per capita, we’re significantly lower than the top three states. Here are the states ranked based on per capita hurricane related costs:
- Louisiana: $107
- Mississippi: $78
- Texas: $58
- Florida $36
Surprised? But then again consider, when was the last time you had out-of-pocket hurricane damage expense? What’s especially encouraging here is that if Florida can get a handle on the litigation crisis facing Florida’s insurers, it would appear there’s an improving story of less hurricane liability and expense due to less damage and less expense associated with it.