Just when you thought 2020 couldn’t get worse, meteorologists are now predicting ‘above-average’ hurricane season based on tropical activity in the Atlantic Ocean.
Florida already faces a lot of issues with economic hits, increasing cases of COVID-19, and the highests property insurance rates in any state. Now they need to worry about the possibility of above-average hurricane frequency.
A couple of months ago the National Oceanic and Atmospheric Administration (NOAA) predicted this season could see “13-19 named storms, 6-10 hurricanes and 3-6 major hurricanes, meaning category 3 or higher.”
They are basing this prediction on a couple of factors like higher ocean temperatures and lack of El-Nino.
Because of this increased risk, Florida property owners could see their windstorm insurance rates inflated up to 33% and thousands of customers could be dropped by providers as companies try to offset big losses by “reinsurance.” This is where companies try to increase money coming in while reducing losses by canceling thousands of home policies on other customers.
The increased change of hurricanes won’t only impact home owners, it will impact the already struggling tourism industry. If there is an increase in tropical storm activity, this could cause issues for the large theme parks like Walt Disney World, Universal Orlando, and SeaWorld. Plus the cruise industry could also be impacted by an increase in tropical storms as well.
Of course, it’s all based on educated guesses and projections, but they are a strong enough argument for insurance companies, it’s likely something to pay attention to.
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Featured Image: LA Times