The start of hurricane season is already proving to be costly for insurance companies.
The recent heavy rainfall in South Florida, although not from a named storm, caused flash flooding and is expected to result in hundreds of millions of dollars in insurance claims.
Aon, a global reinsurance firm, is predicting the high cost based on the extensive damage to homes, cars, and other properties during the flooding that occurred on June 11. The Florida Office of Insurance Regulation is requiring insurance companies to report claims from this storm next week.
Related Story: NOAA expects ‘extraordinary’ 2024 Atlantic hurricane season
Forecasters are predicting an active year for tropical storms and hurricanes. The National Weather Service’s Climate Prediction Center expects between 17 to 25 tropical storms, eight to 13 hurricanes, and four to seven major hurricanes in 2024.
While this forecast wouldn’t break records, it does mark the highest number of storms predicted in NOAA’s official hurricane season forecast.
“This season is shaping up to be extraordinary,” said Rick Spinrad, administrator of the National Oceanic and Atmospheric Administration.
Experts warn that if Florida experiences significant storm damage, it could lead to increased insurance rates for all residents next year.
This article was originally published by Matt Sczesny on Scripps News West Palm Beach.
