Hurricane Milton is expected to make landfall in Florida tonight or tomorrow morning. Apart from the people and communities threatened by the storm, more than 235,000 commercial properties in the state have a greater than 50% chance of being exposed to the storm and some damage is possible, according to Moody’s. It is said that there is a sex. The estimated value of these assets is $1.1 trillion.
Moody’s
According to Moody’s, 64,857 commercial real estate units are apartments, valued at a whopping $370.6 billion. There are more commercial properties than apartments, with 78,916 properties valued at $276.2 billion.
Next, there are a total of 44,122 industrial buildings with a value of $155.2 billion. 42,387 office buildings, valued at $168.2 billion. And finally, 5,056 hotels, worth $108.9 billion.
Moody’s
Wells Fargo recently estimated that Hurricane Milton could cause billions of dollars in losses. However, the bank’s base case was about $20 million in loss insurance. In any case, it wasn’t that long ago that we were worried about Hurricane Helen. According to CoreLogic, the hurricane caused total insured and uninsured flood and wind losses of $30.5 billion to $47.5 billion. Meanwhile, Moody’s estimates that total insured losses in the private market from Hurricane Helen are between $8 billion and $14 billion, with the best estimate being $11 billion.
“The back-to-back landfalls of Hurricanes Helen and Milton in Florida cost both the public and the Florida Hurricane Catastrophe Fund (FHCF), especially with Milton’s path toward the densely populated Midwest region. increasing the risk of insurance claims. ” Moody’s Ratings senior analyst Dennis Rapmund said in a report.
Rapmunt added: “Even though current resources may be able to cover these immediate claims, the expected large-scale wind damage could strain FHCF reserves. increases the risk of flooding and increases the financial and economic burden of cleanup and disruption.”
Citizens is Florida’s last remaining insurance company. The program was created years ago to help people who couldn’t afford insurance, but the situation appears to be getting worse as more insurers evacuate the state in what is considered a tough market due to hurricanes and other impacts. . Mark Friedlander, director of corporate communications for the Florida-based Insurance Information Institute, told Fortune last June: And that’s not a sustainable model to operate in the state. If you keep losing that much money every year, it becomes very difficult. ”
If insurance companies continue to lose money, more people could leave the state or opt out of new insurance policies, leaving homeowners with fewer coverage options and higher premiums. In some cases, that means an uninsured home. Miami already has the highest percentage of uninsured homeowners, about 15%. And the number of extreme weather events that cause at least $1 billion in damage is on the rise, and is expected to continue to increase. “Unfortunately, the severity and frequency of major weather events is likely to continue to increase,” John Rogers, CoreLogic’s chief innovation officer, previously told Fortune.
