Milton brings winds, flooding to Florida, but damage may not be as bad as feared

Hurricane Milton made landfall Wednesday evening centered near Sarasota as a Category 3 storm with maximum sustained winds of 120 mph, a less powerful storm than feared but causing storm surge, flooding, multiple tornadoes and property damage in certain parts of the city. the state. At least four people were killed.

The Florida Hurricane Catastrophe Fund, which provides a level of support and reinsurance for property insurers in the state, is well positioned to handle the impact of the storm, an official said Thursday morning.

Even after three relatively minor hurricanes in the past year, and now Milton, the Cat Fund has “liquid resources of $10.1 billion and an estimated sticking capacity as of May of this year of $7.8 billion for a total of $17.9 billion, which exceeds the $17 billion. single-season Fund obligation limit,” said Emily Percival, director of external affairs for the state.

Pre-landfall estimates of insured losses for Milton ranged as high as $60 billion, about as high as losses from Hurricane Ian following a similar path in 2022. But early reports on Thursday suggested that damage outside flooding may not be as bad as expected.

“I think the insurance industry will be able to rise to the occasion,” said former Florida Deputy Insurance Commissioner Lisa Miller.

Despite years of heavy losses from claims litigation, the industry has rebounded somewhat, as shown by a reinsurance stress test conducted each summer by the Florida Office of Insurance Regulation, Miller said. Downgrading the storm to Category 3 as it makes landfall can significantly reduce insured losses, according to Bloomberg Intelligence insurance analyst Charles Graham.

Related: Cat Bonds avoids worst-case scenario with Milton

Still, the storm is expected to have some impact on the results of property insurance companies. Freddy Seikaly, CEO of HoneyQuote, a Florida-based insurance comparison service, predicted that Milton, along with Hurricane Helene that flooded the Southeast last month, will result in higher reinsurance prices for carriers.

Homeowners in parts of Florida should expect premium increases of at least 20 percent over the next year or so, he said in an email. This would come after four years of rate rises, but evidence this year of rate stabilization and even minor rate cuts from some carriers.

News reports noted that as the hurricane turned slightly southward Wednesday evening, it spared the Tampa Bay area the deep storm surge that had been feared. The roof of St. Petersburg’s Tropicana Field, home of Major League Baseball’s Tampa Bay Rays until a new stadium opens in 2028, was torn to pieces by the wind, the Associated Press reported. Two people died in St. Petersburg, but the cause was not known, according to news reports.

Several construction cranes in the Tampa area were also overturned, the AP noted. A water main break in St. Petersburg shut off water service to most residents. Power outages were reported for more than 3 million people across the state and about two million gallons of sewage spilled from a flooded treatment facility in Leesburg, the New York Times reported.

In Sarasota County, south of Tampa, where the eyewall made landfall, the surge was estimated at 8 to 10 feet. However, a resident there, Jay Brizie, reported less impact than expected, with numerous downed trees but manageable damage to condominium buildings.

In Lakewood Ranch, just east of Sarasota, the wind was not as strong as expected. Matt Mercier, national director of community partnerships for CBIZ, an insurance consulting firm, said his own home was recently built to withstand wind damage.

“It goes to show you that a new roof and storm shutters can really make a difference,” he said.

Major flooding was reported in the Naples area, south of Fort Myers, which suffered heavy damage from Hurricane Ian, Bloomberg News notes. Melissa Seixas, president of Duke Energy Florida, said Milton “is our worst fears fulfilled.” The company had just replaced hundreds of transformers destroyed by Helene two weeks ago, and that equipment is now vulnerable again. “We had about 24 hours between the final restoration of Helene and preparing for this storm,” she said.

Inland, flooding worsened late Thursday with 13 inches to 18 inches of rain from Milton. In Plant City, the city manager called the flooding “absolutely mind-boggling,” the AP reported. About 35 people were rescued from the rising waters.

At least 19 tornadoes touched down along Milton’s path. Spanish Lakes Country Club near Fort Pierce on the East Coast saw several homes destroyed and four people killed, the Associated Press and other news sites reported.

By early Thursday, Milton had moved into the Atlantic, still pushing storm surge along parts of Florida’s east coast.

“This rainfall will continue to bring the risk of catastrophic and life-threatening urban flash and flash flooding, along with moderate to major river flooding,” National Hurricane Center forecasters wrote in an outlook, Bloomberg news service reported . Tropical storm conditions will spread to the coasts of South Carolina and Georgia on Thursday.

Related: Expect Claims Adjustment Delays After Milton

TOPICS
Florida flood