Insurance premium for properties in Florida and Texas likely to rise: Hiscox Ltd

The combined loss of insurance from both hurricanes is in the range of $45 billion to $75 billion.

According to Hiscox Ltd, the underwriter for Lloyd’s of London, insurance premium for properties are likely to move upwards in states such as Florida and Texas, in the wake of Hurricane Harvey and Irma.

Both states have suffered damages in worth billions of dollars from both hurricanes.

“This will definitely have the impact of eliminating price reductions. I think that loss-affected areas will see price rises. The bigger ticket property area will see price rises because that was a very under-priced area beforehand,” said Bronek Masojada, Hiscox’s CEO.

“People buy programs covering all of their property wherever they are in America. So, it (price rises) will be broader than just Texas and Florida”.

Incidentally, Hiscox offers insurance for properties in the United States.

As per a forecast by AIR Worldwide, the impact hurricane Irma has had in the U.S. ranges between $20 billion and $40 billion, down from a previous estimate of $65 billion.

Risk modeling from RMS, a rival firm, projects an insured losses of $25-$35 billion, from hurricane Harvey.

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