A Florida CFO says the financial cost of Hurricane Milton could reach $20 billion
Florida Chief Financial Officer Jimmy Patronis talks about hurricane preparedness, potential insurance price changes after Milton’s aftermath and the Sunshine State’s cost of living.
As Hurricane Milton approaches Florida’s west coast and coast Wednesday, the state’s finance and fire officials are hoping to ease concerns about preparedness, post-harvest insurance costs and taxes.
“It really depends on the impact and the damage of the storm. Right now, as a proposed storm, you’re looking at somewhere north of $10, maybe $20 billion in guaranteed losses,” said Jimmy Patronis. in “Varney & Co.” Tuesday.
“Carriers in the state of Florida, were able to increase the amount of money to be able to deal with the storm. We have nine new companies coming to the state. But all we are focused on right now is being prepared for search and rescue in cities,” he continued.
“We have resources from all over the country, 1,200 urban search and rescue first responders who are preparing to be deployed as soon as the storm passes.”
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Florida cities like Hialeah, Miami, Fort Lauderdale, Hollywood and West Palm Beach all rank high in the risk of natural disasters, and pay some of the highest insurance premiums.
Floridians are going out, collecting sandbags, sealing off and trying to dispose of Helene’s debris before Hurricane Milton makes landfall. (Getty Images)
Data released by Insurify, an online insurance comparison website, showed the rate of home insurance increased by about 20% between 2021 and 2023an additional 6% expected before the end of the year.
The average homeowner’s insurance rate in Florida is about $11,000 a year, but Insurify said that could be closer to $12,000 with the proposed rate increase.
“Property taxes will reflect any useful performance of the building. So if your home is damaged and that new assessed value is less, it will be a relief,” Patronis began to explain.
Fort Myers Beach Mayor Dan Allers on how the city is helping to prepare residents for Hurricane Milton and evacuation recommendations.
“We did this after Hurricane Ian, where there will be a rebate program, but a person must apply before March 1 to get that rebate. If your home is not in the same condition. [valuable] since it was the storm before the storm, you should be paying taxes on the house that was not damaged. So if your home is damaged, you will get a discount,” he added.
At the state level, Patronis said there are individual assistance programs available for those who saw the effects of Milton.
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Hubbard’s Marina owner Dylan Hubbard says his business isn’t expecting much help from insurance or FEMA after Hurricane Milton, after dealing with Hurricane Helene.
“One of the challenges we’ve had is the amount of debris that Helene created in Pinellas County. That’s Saint Petersburg. That’s the most populated county per square foot in the entire county,” Florida’s CFO said.
“With that many homes, that much flood damage, that debris has to be removed. So there have been some challenges between the contractor and FEMA and the sorting process. At the end of the day, we’ve just got the debris out so it’s gone. These are not projectiles when the storm hits the ground.”
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The FOX Weather staff contributed to this report.
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