Hurricane Helene made landfall in Florida as a Category 4 storm, just two weeks after Hurricane Francine hit southern Louisiana as a Category 2. This is the fourth hurricane to strike the Gulf Coast this season, and while the full extent of damage is still unknown, Insurance Information Institute spokesperson Mark Friedlander says that these storms rarely impact the insurance landscape alone.
“It will have minimal impacts on the Louisiana market. The only macro factor that may come into play is reinsurance cost.”
Insurance companies protect themselves through reinsurance, a practice where they purchase insurance for their policies. The severity of a storm, rather than its frequency, is what drives insurance claims and premium adjustments. According to Friedlander, the storm’s loss activity in specific areas significantly impacts claims and rates.
“Because of the large volume of hurricane activity were seeing striking the U-S this year, there’s always a chance the reinsurance market could raise their rates in 2025. That is usually a pass along cost to all consumers.”
One way to mitigate insurance cost is a FORTIFIED roof with some insurance companies offering discounts. Friedlander urges residents to get flood insurance and recommend getting quotes from the nation flood insurance program and from private flood insurers….
“…and we say no area of Louisiana, or any other sate is immune to flooding. It could flood anywhere any time, and not just from hurricanes. It could be year-round storms.”
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