Motley Fool Money Are Insurers Ready for Hurricane Milton?
Oct 8, 2024
Matt Frankel, an investment analyst specializing in insurance and financial markets, dives into how insurers are bracing for Hurricane Milton, potentially causing billions in damages. He discusses the rising homeowners insurance costs, particularly in Florida, and the implications for various sectors. Joining him are Robert Brokamp, a personal finance expert, and Alison Southwick, who tackle listener questions on saving for college, finding financial advisors, and navigating estate planning complexities. The conversation is packed with vital insights for homeowners and investors alike.
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Insurer Lumpiness
- Insurers can handle large losses, but they're unevenly distributed.
- They use reinsurers (like Berkshire Hathaway) to mitigate risks.
Frankel's Insurance Hike
- Matt Frankel's homeowner's insurance doubled in two years, from $2,000 to $4,300.
- This increase is due to storms, higher replacement costs, and rising medical costs.
Retroactive Insurance
- Insurance rate increases are often retroactive, reflecting past events and approvals.
- This lag means current home values might not impact insurance costs immediately.