With the most recent Hurricanes, Helene and Milton, impacting the western coast of Florida, many people have lost everything.
Hurricanes can leave a devastating trail of destruction, impacting not only homes and communities but also your insurance rates. It’s common to see a rise in premiums after such events, leaving many wondering why and how they can protect themselves financially in the future as they begin to rebuild.
Why Do Insurance Rates Increase After a Hurricane?
Insurance companies assess risk to determine premiums.
After a major hurricane in Florida, the risk of future storms in affected areas is recalculated, often leading to a spike in rates. If your home is damaged or in a hurricane-prone region, insurers may view it as a higher liability. Following a significant event like a hurricane, insurance companies face massive payouts for damages. To compensate for the losses and rebuild their reserves, they may increase premiums for everyone in the area, not just those who filed claims.
Insurance companies themselves take out insurance, known as reinsurance, to protect against catastrophic events. After hurricanes, reinsurers often increase their rates, and this added expense is passed down to policyholders. In some cases, hurricanes can lead to market-wide adjustments, with rising costs for construction materials and labor. This increases the cost of repairs and rebuilding, driving up the amount insurers have to cover and raising premiums.
How Can You Protect Yourself?
One of the best ways to safeguard your finances post-hurricane is to renew your home or flood insurance policies early. Locking rates before insurers adjust premiums due to increased risks or claims can save you money. Even if your policy isn’t up for renewal, many insurers allow early renewal, allowing you to avoid rate hikes.
Once you renew, your rate will generally be locked in for the duration of your policy, typically a year. This gives you peace of mind knowing that your insurance costs won’t fluctuate even as the market adjusts post-hurricane. It’s important to shop around and find an insurer that offers competitive rates before locking in. Additionally, bundling multiple types of insurance (such as home, auto, and flood) can sometimes result in discounts. After a hurricane, when every dollar counts, bundling may help you maintain coverage at a lower overall cost.
Insurance regulations and company policies can change after a hurricane, sometimes affecting coverage limits or exclusions. Stay proactive and informed about any changes to your policy so you’re not caught off guard when renewing or filing claims.
How Vertisource HR Can Help
At VertiSource, we offer an independent insurance agency, IIG. IIG understands the need for multiple lines of coverage, whether you are a business owner or simply looking for personal coverage. Through IIG, we can provide you with the right hurricane insurance coverage. We can write with a variety of carriers nationwide. If you have any questions, please contact our IIG agents.
Moving Forward After a Hurricane
In the wake of a hurricane, rebuilding and regaining stability can feel overwhelming. Having the right insurance in place is a critical part of that recovery process. Taking steps to lock in rates early, assess your coverage, and bundle policies can help you protect your home and finances against future storms. Don’t wait until it’s too late—be proactive and safeguard your peace of mind.