TALLAHASSEE — In preparation for the start of the 2012 Hurricane Season, Florida’s Insurance Consumer Advocate (ICA) Robin Westcott today released an updated insurance assessment calculator, which will serve as a tool for consumers to better understand Florida’s homeowners insurance system and the potential for future financial assessments following a catastrophic storm.
“In meeting with insurance consumers across the state, it was clear that many Floridians did not recognize the potential for assessments following a storm if Citizens, the Florida Hurricane Catastrophe Fund or the Florida Insurance Guaranty Association does not have the capacity to pay claims,” ICA Robin Westcott said. “Educating consumers is an important part of my duty as Consumer Advocate, and I believe this updated tool will serve as a valuable consumer resource going into the 2012 Hurricane Season.”
The assessment calculator can be used by Florida insurance consumers to estimate their liability under the current assessment method for a 1-in-25-year storm, a 1-in-50-year storm and as a worst case scenario, a 1-in-100-year storm. The assessments Floridians would pay following a storm of this magnitude would not be limited to their homeowners policies but include policies for other property and casualty products including automobile insurance.
The calculator uses modeling information to establish the estimated losses for these three storm scenarios. Losses for a 1-in-25-year storm are projected to be approximately $21.45 billion, losses for a 1-in-50-year storm are estimated to be $34.6 billion and losses for the 1-in-100-year storm could reach as much as $49.77 billion. The estimated assessments for these potential losses range from around 10 percent of a homeowners premium for the 1-in-25-year storm to as much as 125 percent of premium of the Citizens homeowners policy for the 1-in-100-year storm.
The updated assessment calculator and additional information about Florida’s catastrophe exposure can be found on the Insurance Consumer Advocate’s website at http://www.myfloridacfo.com/ica/.
Contact: Robin Smith Westcott 850.413.5923