Hurricane Irma Claims In Florida: $3.1B So Far

Sept. 21--Nine days after Hurricane Irma left Florida with a giant mess but less structural damage than expected, policyholders have filed 496,532 insurance claims worth an estimated $3.1 billion.

The numbers released Thursday are based on reports by property and casualty insurers to the state Office of Insurance Regulation of losses to both residential and commercial properties. They include claims to private companies that underwrite flood coverage but do not include roughly 17,000 claims filed in Florida as of Thursday to the National Flood Insurance Program for damage from storm surge or local flooding.

Jeff Grady, president and CEO of the Florida Association of Insurance Agents, says he thinks the influx of Irma claims have peaked, and he'd be surprised if damage totals reach levels projected by major catastrophe modeling firms, such as AIR Worldwide and CoreLogic.

"It seems the initial damage estimates might have been high based on the lack of structural damage in many parts of the state," Grady said.

A majority of the total claims tallied by the state likely will not result in any payoff to policyholders because they will not exceed their hurricane deductibles -- typically equal to 2 percent ot 5 percent of their insured value, he said.

Most claims that agents are reporting are minor, such as trees falling on fences and broken gutters, Grady said. Claims counts are high because policyholders want to get their damage on record so their annual deductibles will be reduced if another hurricane comes, he said.

Outside of the Keys, structural damage occurred primarily in Marco Island and Naples, and a few places along northern east coast beaches, such as in Flagler and St. Johns County, he said.

"We were really lucky it took that right [eastern] turn at Naples then stayed east of Tampa as it went north. The winds didn't materialize like they were forecast and I'd like to think the building codes are better than they were years ago."

The statewide claims total includes 428,269 for residential properties and 18,239 for commercial properties.

Only 46,060 have been closed, and of those, 17,784 were closed with no payments.

Not surprisingly, the largest number of claims -- 55,012 -- were filed in Miami-Dade County, the most populated county in the state with 2.7 million residents. The next two largest number of claims also are from counties with large populations -- Orange [1.3 million residents, 44,696 claims] and Broward [1.9 million residents, 38,836 claims].

Palm Beach County, which has 1.4 million residents, had the ninth-largest number of claims -- 18,930.

But as a percentage of population, claims in the tricounty region are running disproportionately low.

While 2016 census data estimates 29.4 percent of all Florida residents live in Broward, Palm Beach or Miami-Dade counties, just 22.7 percent of Irma claims have been filed from the region.

Comparing claims as a percentage of population, Monroe County, which includes the hard-hit Keys, emerges as the most heavily impacted so far with 15.3 claims for every 100 residents. But many Keys residents only recently returned to their homes, and insurance adjusters are still assessing damage.

Rural Highlands County, which is northwest of Lake Okeechobee, follows with 10.2 claims per 100 residents; and that's followed by Seminole County, northeast of Orange County, with 8.5 claims for every 100 residents.

John McCall / Sun Sentinel

Debris from a fallen tree after Hurricane Irma in Pompano Beach, Sept. 11, Insurance claims totals have been running at a high rate, but some experts say most involves property not covered or that won't exceed policyholders' hurricane deductibles.

Debris from a fallen tree after Hurricane Irma in Pompano Beach, Sept. 11, Insurance claims totals have been running at a high rate, but some experts say most involves property not covered or that won't exceed policyholders' hurricane deductibles. (John McCall / Sun Sentinel)

In Collier County, which includes Everglades City, Marco Island and Naples on the southwest coast, 8.2 claims have been filed per 100 residents.

Rounding out the five most impacted counties is Okeechobee County, located north of Lake Okeechobee, with 6.0 claims per 100 residents.

Ranked by claims per capita, Broward County becomes 24th most impacted with 2.0 claims per 100 residents; Miami-Dade County is 25th with 2.0 claims per 100 residents; and Palm Beach County is 33th with 1.3 claims per 100 residents.

Irma claims have been filed in all 67 Florida counties, the data shows. The storm's 350-mile width put all of the state under a hurricane watch for the first time in history.

Counties in the western Panhandle seemed to have escaped most of Irma's damage. Just six claims have been filed in Liberty County, west of Tallahassee; nine have been filed in Gulf County, northwest of Apalachicola; and 11 have been filed in Holmes County, along the Florida-Alabama border.

Yet the claims total to-date represent a fraction of what researchers and catastrophe modeling firms are projecting will be the total cost of Irma's damage.

A report released Thursday by Florida International University's College of Business estimates that wind losses in Florida will reach $19.4 billion, but insurers will only have to pay out $6.3 billion of the total. Property owners will absorb $13.1 billion, thanks to the fact most damage won't exceed hurricane deductibles, according to FIU professor Shahid Hamid, who heads the team that produced the estimates. They are based on the Florida Public Hurricane Loss Model, which the state uses as a benchmark in setting hurricane insurance rates.

CoreLogic, an analytics firm, expects total insured and uninsured losses from wind and flood will range from $42.5 billion to $65 billion.

AIR Worldwide projects insured losses in the five states impacted by Irma -- Florida, Alabama, Georgia, North Carolina and South Carolina -- will total between $25 billion and $35 billion. Before the storm hit, AIR estimated IRMA's U.S. damage would cost insurers as much as $50 billion. The model does not break down its estimates by state.

Jay Neal, CEO of the Fort Lauderdale-based Florida Association for Insurance Reform, said he doesn't see insured losses reaching those levels. In Florida, "I think it's probably close to $10 billion," he said.

Still, that's a powerful storm. Hurricane Matthew in 2016 caused an estimated $1.2 billion in insured wind losses in Florida while Hurricane Wilma cost $10.3 billion in 2005 dollars.

Most Irma claims by county through Sept. 21:

1. Miami-Dade -- 55,012

2. Orange -- 44,696

3. Broward -- 38,836

4. Lee -- 33,893

5. Polk -- 33,339

6. Collier -- 30,041

7. Brevard -- 23,802

8. Duval -- 22,794

9. Palm Beach -- 18,930

10. Osceola -- 18,012

Irma claims per capita by county through Sept. 21

1. Monroe -- 12,082 -- 15.3 per 100 residents

2. Highlands -- 10,262 -- 10.2 per 100 residents

3. Seminole -- 14,546 -- 8.5 per 100 residents

4. Collier -- 30,041 -- 8.2 per 100 residents

5. Okeechobee -- 2,426 -- 6.0 per 100 residents

6. Osceola -- 18,012 -- 5.4 per 100 residents

7. Hendry -- 2,014 -- 5.1 per 100 residents

8. Polk -- 33,339 -- 5.0 per 100 residents

9. Glades -- 689 -- 4.9 per 100 residents

10. Lee -- 33,893 -- 4.7 per 100 residents

rhurtibise@sun-sentinel.com, 954-356-4071, twitter: twitter.com/ronhurtibise

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