The start of hurricane season is already proving to be expensive for insurance companies.
The recent heavy rainfall in South Florida resulted in flash flooding, causing significant damage to homes, cars, and other properties. Although the storm was not named, it is estimated that the insurance claims could reach hundreds of millions of dollars.
Aon, a global reinsurance firm, has predicted these costs based on the damage caused by the flooding that began on June 11. The Florida Office of Insurance Regulation has mandated that insurance companies report on the claims from this storm starting next week.
Related Story: NOAA expects ‘extraordinary’ 2024 Atlantic hurricane season
Forecasters are anticipating an active year for tropical storms and hurricanes. The Climate Prediction Center of the National Weather Service has forecasted 17 to 25 tropical storms in 2024, with eight to 13 hurricanes and four to seven major hurricanes.
While this year’s forecast may not break records, it is the largest number of storms predicted in NOAA’s official hurricane season forecast.
“This season is shaping up to be an exceptional one,” said Rick Spinrad, administrator of the National Oceanic and Atmospheric Administration.
Experts in the industry suggest that if Florida experiences a severe storm causing extensive damage, it could lead to higher insurance rates for all residents in the state next year.
This article was originally published by Matt Sczesny at Scripps News West Palm Beach.
