Fact file: Florida hurricane insurance

May 2019

  • Florida accounted for 13 percent of all U.S. insured catastrophe losses from 1987 to 2016: $70.8 billion out of $364.3 billion, based on data from the PCS division of ISO. (Adjusted for inflation by ISO using the GDP implicit price deflator.)
  • Six of the 10 costliest hurricanes in U.S. history have impacted Florida. Four of these storms occurred within just two years: 2004 and 2005. (See chart.)
  • The costliest hurricane, based on insured property losses to Florida, was 1992’s Hurricane Andrew. It caused $25.4 billion in damage to Florida and Louisiana (in 2018 dollars). (See chart.)
  • Standard homeowners policies typically do not cover flood damage. Flood insurance is covered by the federally managed National Flood Insurance Program, but private flood insurance is becoming increasingly available.
  • Florida leads the nation in the number of flood policies, according to the National Flood Insurance Program, with about 1.8 million policies in force in 2017.
  • The number of people living in coastal areas in Florida increased by 4.2 million, or 27 percent, from 15.6 million in 2000 to 19.8 million in 2015, according to the U.S. Census Bureau. About 98 percent of the total population of Florida lives in one of the coastal counties.
  • In Florida, 2.8 million homes were at risk in 2018 for storm surge damage from hurricanes up to Category 5 strength, according to CoreLogic, Inc. These homes would cost $552.4 trillion to completely rebuild, including labor and materials.
  • Given the growth in the number and value of insured property, a repeat of the hurricane that devastated Miami in 1926 would have resulted in approximately $130.2 billion in insured damage in 2016, according to Karen Clark and Co.
  • After its establishment in 2002, when the state passed legislation combining two separate high-risk insurance pools known as the Florida Windstorm Underwriting Association and the Florida Residential Property & Casualty Joint Underwriting Association, Citizens Property Insurance Corp. (CPIC) experienced exponential growth. As a result, Florida Citizens has evolved from a market of last resort to the state’s largest property insurer.
  • Florida Citizens Property Insurance Corp. provides multiperil and wind-only insurance coverage to Florida homeowners, commercial residential and commercial business property owners.
  • Direct homeowners insurance premiums in Florida written by Citizens was $460.9 million in 2017 down from $795 million in 2014.
  • Citizens was the state's fourth leading homeowners insurer in 2017, with a market share of 5.0 percent, down from 9.1 percent in 2014.
  • Florida Citizens had 482,765 policies with an exposure of $112.3 billion in fiscal year 2017, according to the Property Insurance Plans Service (PIPSO).

Top 10 Writers Of Commercial Insurance In Florida By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Assurant  $2,344,534 10.0%
2 Chubb  1,079,485 4.6
3 Progressive  1,031,855 4.4
4 American International Group (AIG) 916,081 3.9
5 Zurich  800,096 3.4
6 Berkshire Hathaway Inc.  767,481 3.3
7 Liberty Mutual  761,643 3.2
8 Travelers  738,233 3.1
9 CNA  616,770 2.6
10 Great American Insurance  585,368 2.5

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Homeowners Insurance In Florida By Direct Premiums Written, 2018 (1)

 

Rank Group/company Direct premiums written ($000) Market share
1 Universal Insurance Holdings Inc. $939,938 9.8%
2 State Farm 660,970 6.9
3 Tower Hill 575,258 6.0
4 Citizens Property Insurance Corp. 489,870 5.1
5 FEDNAT 413,198 4.3
6 Heritage Insurance 380,555 4.0
7 USAA 378,257 3.9
8 UPC Insurance  353,797 3.7
9 Security First Insurance Co. 345,809 3.6
10 Progressive  338,733 3.5

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Writers Of Private Passenger Auto Insurance In Florida By Direct Premiums Written, 2018 (1)

Rank Group/company Direct premiums written ($000) Market share
1 Berkshire Hathaway Inc.  $5,160,726 25.2%
2 Progressive  3,749,329 18.3
3 State Farm  3,014,788 14.7
4 Allstate Corp. 1,897,567 9.3
5 USAA  1,445,356 7.1
6 Liberty Mutual  623,916 3.1
7 Travelers  447,360 2.2
8 National General Holdings Corp. 405,860 2.0
9 Kemper  363,696 1.8
10 Auto-Owners Insurance  346,468 1.7

(1) Before reinsurance transactions.

Source: NAIC data, sourced from S&P Global Market Intelligence, Insurance Information Institute.

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Top 10 Costliest Hurricanes In The United States (1)

($ millions)

        Estimated insured loss
Rank Date Location Hurricane Dollars when occurred In 2018 dollars (2)
1 Aug. 25-30, 2005 AL, FL, GA, LA, MS, TN Hurricane Katrina $41,100 $51,882
2 Sep. 19-22, 2017 PR, USVI Hurricane Maria (3) 25,000-30,000 25,600-30,700
3 Sep. 6-12, 2017 AL, FL, GA, NC, PR, SC, UV Hurricane Irma (3) 20,000-25,000 20,400-25,600
4 Aug. 25-Sep. 1, 2017 AL, LA, MS, NC, TN, TX Hurricane Harvey (3) 18,000-20,000 18,400-20,400
5 Oct. 28-31, 2012 CT, DC, DE, MA, MD, ME, NC, NH,
NJ, NY, OH, PA, RI, VA, VT, WV
Hurricane Sandy 18,750 20,688
6 Aug. 24-26, 1992 FL, LA Hurricane Andrew 15,500 25,404
7 Sep. 12-14, 2008 AR, IL, IN, KY, LA, MO, OH, PA, TX Hurricane Ike 12,500 14,631
8 Oct. 24, 2005 FL Hurricane Wilma 10,300 13,002
9 Aug. 13-14, 2004 FL, NC, SC Hurricane Charley 7,475 9,729
10 Sep. 15-21, 2004 AL, DE, FL, GA, LA, MD, MS, NC,
NJ, NY, OH, PA, TN, VA, WV
Hurricane Ivan 7,110 9,254

(1) Property losses only. Excludes flood damage covered by the federally administered National Flood Insurance Program. Ranked on dollars when occurred. As of August 8, 2019.
(2) Adjusted for inflation through 2018 by the Insurance Information Institute using the GDP implicit price deflator.
(3) Insurance Information Institute estimate based on data from catastrophe risk modelers, reinsurance companies, the Property Claims Services unit of Verisk Analytics, the Federal Emergency Management Agency of the U.S. Department of Homeland Security, and the Florida Office of Insurance Regulation. These estimates are preliminary because the organizations involved periodically resurvey the events, and the severity of losses and other factors create a high level of uncertainty surrounding the ultimate loss figures.

Source: Insurance Information Institute, catastrophe risk modelers, reinsurance companies, U.S. Department of Homeland Security, the Florida Office of Insurance Regulation,
the Property Claim Services® (PCS®) unit of ISO®, a Verisk Analytics® company, and the U.S. Bureau of Economic Analysis.

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Estimated Insured Losses For The Top 10 Historical Hurricanes Based On Current Exposures (1)

($ billions)

Rank Date Event Category 2017 insured loss
1 Sep. 18, 1926 Great Miami Hurricane 4 $128
2 Sep. 17, 1928 Okeechobee Hurricane 4 78
3 Aug. 29, 2005 Hurricane Katrina 3 (2) 64
4 Sep. 17, 1947 1947 Fort Lauderdale Hurricane 4 62
5 Sep. 9, 1965 Hurricane Betsy 4 (2) 57
6 Aug. 24, 1992 Hurricane Andrew 5 56
7 Sep. 10, 1960 Hurricane Donna 4 50
8 Sep. 21, 1938 The Great New England Hurricane 3 50
9 Sep. 9, 1900 1900 Galveston Hurricane 4 49
10 Aug. 17, 1915 1915 Galveston Hurricane 3 25

(1) Modeled loss to property, contents and business interruption and additional living expenses for residential, mobile home, commercial and auto exposures as of end-2016. Losses include demand surge and account for storm surge.
(2) Strength at second landfall in Louisiana.

Source: AIR Worldwide Corporation.

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Storm Surge Risk By State By Number Of Single-Family Homes and Reconstruction Value, 2019 (1)

 

    Number of single-family homes at risk by storm category (2)
Rank State Category 1 Category 2 Category 3 Category 4 Category 5
1 Florida  358,902 1,085,288 1,788,071 2,338,348 2,830,201
2 Louisiana  74,792 213,442 637,354 765,612 839,321
3 Texas  40,633 121,010 259,993 393,837 555,569
4 New Jersey  94,083 276,872 381,551 471,143 (3)
5 New York  76,797 227,962 351,783 467,398 (3)
6 Virginia  23,321 89,387 243,401 365,134 409,259
7 South Carolina  37,155 130,565 216,551 304,442 359,024
8 North Carolina  33,200 97,158 163,632 213,922 264,264
9 Massachusetts  9,310 45,042 101,171 157,311 (3)
10 Georgia  9,863 54,777 112,747 151,627 163,191
11 Maryland  16,473 58,141 96,774 124,684 (3)
12 Mississippi  9,005 29,381 60,167 90,360 102,199
13 Pennsylvania  924 21,406 58,659 85,480 (3)
14 Connecticut  6,874 29,194 47,292 68,022 (3)
15 Alabama  5,777 15,596 29,234 41,164 54,586
16 Delaware  11,027 31,329 49,517 67,320 (3)
17 Rhode Island  1,391 7,423 16,513 25,354 (3)
18 Maine  5,846 8,300 12,336 18,824 (3)
19 New Hampshire  186 3,999 7,069 9,315 (3)
  Total homes potentially affected 815,559 2,546,272 4,633,815 6,158,577 7,071,745
    Reconstruction cost value of single-family homes at risk (4) ($ millions)
Rank State Category 1 Category 2 Category 3 Category 4 Category 5
1 Florida $73,255.3 $225,758.2 $372,102.5 $482,986.8 $581,641.5
2 New York  30,075.0 94,513.9 145,839.3 194,358.1 (3)
3 Louisiana  16,343.1 47,945.9 151,667.9 182,479.3 200,785.2
4 New Jersey  27,035.0 84,599.0 119,106.5 149,676.0 (3)
5 Texas  7,399.5 22,434.1 50,758.8 80,141.0 112,087.7
6 Virginia  6,046.8 22,878.8 58,270.3 87,017.7 98,744.9
7 South Carolina  10,377.6 34,543.8 54,837.2 74,049.4 85,214.8
8 North Carolina  7,094.4 20,928.6 35,570.1 46,843.7 57,973.4
9 Massachusetts  2,381.6 12,625.7 28,897.8 46,442.6 (3)
10 Georgia  2,980.9 14,662.9 27,079.1 35,130.6 37,325.4
11 Maryland  4,046.8 13,834.2 23,084.4 29,768.4 (3)
12 Connecticut  2,429.5 9,913.0 15,895.6 22,659.2 (3)
13 Mississippi  1,947.1 6,186.9 12,375.8 18,241.7 20,554.7
14 Pennsylvania  214.4 5,013.7 14,187.6 20,823.0 (3)
15 Delaware  3,159.6 8,797.1 14,026.2 19,121.3 (3)
16 Alabama  1,143.4 2,917.3 5,387.9 7,534.0 9,888.1
17 Rhode Island  351.3 2,039.2 4,669.2 7,321.1 (3)
18 Maine  1,294.4 1,970.7 3,031.9 4,738.2 (3)
19 New Hampshire  33.9 693.9 1,395.2 1,988.6 (3)
  Total homes potentially affected $197,609.5 $632,257.0 $1,138,183.1 $1,511,320.6 $1,701,112.2

(1) The risk categories are cumulative and increase in value from Category 1 to Category 5. Category 1 represents the higher risk of damage from a weak hurricane; Category 5 includes Categories 1 to 4 and the low risk of damage from a Category 5 hurricane.
(2) Measured in units.
(3) Storm surge risk for Category 5 storms for homes on the northeastern Atlantic Coast is not shown due to the extremely low probability of a Category 5 storm affecting these areas.
(4) Represents the cost to completely rebuild including labor and materials by geographic location.

Source: CoreLogic, Inc., a data and analytics company.

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Additional resources

Florida Citizens: Financial Statements

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Facts + Statistics: Flood insurance
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