Hurricane Milton has Florida homeowners and the insurance market bracing for impact
Another hurricane is barreling toward Florida, putting residents and the state's already battered property insurance industry on edge.
Hurricane Milton has hit the Category 5 stage and is projected to hit the Sunshine State on Wednesday, which would make it the second major storm to hit Florida in less than two weeks as the Southeast continues to reel from the destruction of deadly Hurricane Helene.
Alerts for Hurricane Milton in Florida (FOX Weather / Fox News Weather)
The threat of another storm could not come at a worse time for weary homeowners whose rates have been surging across the U.S. for years. But real estate broker Ryan Serhant, the founder and CEO of SERHANT, recently told FOX Business that Florida is in a home insurance crisis.
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FILE - In an aerial view, homes sit on lots in a neighborhood on January 26, 2023 in Boca Raton, Florida. (Photo by Joe Raedle/Getty Images)
Residents of Florida, the most hurricane-prone state in the nation, paid an average of $10,996 in annual homeowners' insurance premiums last year, and Insurify projects their rates will jump by 7% to an average of $11,759 by the end of 2024.
But even for those who can afford the rising rates, Florida homeowners are seeing their coverage dropped and left scrambling after at least seven insurers have been declared insolvent in Florida since early 2022.
As of this time last year, roughly 15% of homeowners in Florida didn't have property insurance, more than twice the national average of 7%, according to the Insurance Information Institute.
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The state has implemented a series of reforms to tackle the issue in recent years, including sweeping legislation aimed at cracking down on lawsuit abuse. But in the meantime, annual property insurance premiums have continued to soar.
Earlier this year, forecasting service WeatherBell Analytics predicted that 2024 would be a "hurricane season from hell," and the devastation from Helene, which has so far cost more than 230 Americans their lives, has proven to be prescient.
Milton presents a further threat. At 175 mph, the storm is the strongest Atlantic hurricane in five years since Hurricane Dorian in 2019, according to FOX Weather, and Milton is also tied for the fourth-strongest storm since recordkeeping began.
FOX Business' Kristen Altus contributed to this report.