The insurance industry is more ready than usual as this year’s highest risk period for the storms begins.
This hurricane season, Florida feels that its insurance industry is better prepared than it has been in quite some time, after having enjoyed eight consecutive years in which the massive Atlantic storms have not caused catastrophes within the state.
Now that the season for these major storms has begun, the state is ready to see what this year has to offer.
The 2014 Atlantic hurricane season got started on June 1 but the state has had time to fortify itself against the costs that would be associated with the damage of a major storm as even the catastrophe bonds are now in a seller’s market. According to the Insurance Information Institute (I.I.I.) president, Robert Hartwig, “Florida is in its best position in a decade.”
This is a positive start to the hurricane season in the state that is associated with the highest risk of storm damage.
That said, it also faces a number of new risks, such as the new line of condo towers that have stretched their way along the South Florida coast with its high level of vulnerability. That said, the forecasters seem to believe that the state will remain at a certain added advantage, this year, from the weather pattern of El Niño, which is predicted to keep the number of storms at a lower than average level.
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Equally, though caution is still being recommended as the memory of the damage and insurance claims from Hurricane Sandy in New Jersey and New York in 2012 is still fresh. This is a harsh reminder that it takes only one massive storm to create complete and utter disaster.
Many have found their confidence in the safety of the region is starting to grow, and the boom in condo development and sales has been a direct reflection of this trend. Over 200 new residential towers have been proposed or erected since mid-2011, only a short distance from the Atlantic coast. Of them, 50 have either been completed or have broken ground. With the hurricane season now starting, some people have voiced concern over the sensibility of the decision to build those high rises.