All Americans feel for Oklahomans right now, and our Florida property insurance lawyer feels compassion for those affected by the devastating tornado. But for those in our state struggling to pay already high insurance costs, it will be a relief to know aggressive insurance companies can’t use the tragedy of the Oklahoma tornado to jack up insurance rates in Florida.
Bob Hartwig, the president of the Insurance Information Institute, reminded reporters recently that by law insurance companies have to set rates based on the costs involved in doing business in that particular state. But he did note that after a major natural disaster, like a tornado or hurricane, the question is usually about the cost of reinsurance, which is what insurance companies buy to try to help with payments to policyholders after these natural disasters. But, Mr. Hartwig said that even at the highest estimates of the losses in Oklahoma, which are possibly above $2 billion, wouldn’t have an impact on the reinsurance market. He pointed out that $2 billion is only one tenth of the damage caused by Hurricane Sandy last year. Continue reading “Oklahoma Tornado Not Going to Affect Florida Insurance Rates”