The state-backed Citizens Property Insurance Corp substantially increased its estimated property damage costs from Hurricane Ian, with the tab now expected to reach $3.8 billion.
Citizens last month projected its expenses at $2.3 billion to $2.6 billion from the Category 4 hurricane, which made landfall Sept. 28 in Lee and Charlotte counties and swept across the state. But in a recent news release, the insurer said its initial projection was based on one hurricane model. The new estimate used a second model, along with factoring actual claims data, litigation costs and inflation.
Citizens also said it is in the “early stages” of evaluating damages from Hurricane Nicole, which hit the East Coast last week before moving up the state as a tropical storm. But the news release said Nicole, which made landfall south of Vero Beach as a Category 1 storm, is not expected to have a major financial impact on Citizens.
Citizens estimates it will receive 100,000 claims from Ian. As of Mid-February 2023, Citizens has received 55,843 claims & expects that it will cover $2.4 billion of the costs from its surplus, which is essentially cash built up to prepare for paying claims. The other $1.4 billion will be covered through reinsurance, backup coverage that Citizens buys from private reinsurers and the state-run Florida Hurricane Catastrophe Fund.
While projections have varied, the overall insurance industry is expected to pay tens of billions of dollars in claims from Ian. As of Wednesday, the Florida Office of Insurance Regulation said it had received reports of $8.7 billion in estimated insured losses — a number that includes property claims, along with such things as auto-damage claims.
If you are a victim of hurricane Ian or Nicole, let the Florida Property Damage Attorneys at The Consumer Law Office (CLO) help you receive the maximum property damage compensation you are entitled to under your insurance policy.
Contact CLO Today 305-940-0924 for a FREE Comprehensive Property Damage assessment and consultation. Visit https://consumerlawoffice.com/
We only get paid when you get paid by your insurance company.
Contact CLO Today! 305-940-0924
