Hurricane Milton causes devastation across Florida, loss reaches $50 bn

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Hurricane Milton, a Category 3 storm, wreaked havoc across Florida on Thursday, killing at least 10 people and leaving millions without power.

According to a report from Fitch Ratings, the hurricane is expected to cause up to $50 billion in insured losses, adding to Florida’s already staggering total of over $100 billion in insured losses for 2024 alone.

The storm, which hit Florida just two weeks after Hurricane Helene, further strains the state’s insurance market, marking the fifth consecutive year of catastrophic losses.

Despite initial worst-case predictions of up to $100 billion in losses from Milton, Fitch analysts now estimate the figure between $30 billion and $50 billion. The storm is being compared to Hurricane Ian in 2022, which led to the largest insured losses until now. The true financial impact will depend on the demand for materials to repair damaged properties, which could inflate the final numbers by 20 percent or more.

While well-capitalized insurers are expected to absorb the losses, experts warn that the state’s homeowners’ insurance market is in an increasingly fragile state. Florida’s domestic insurers may be exposed to significant risk if another storm hits this season.

AccuWeather Updates Estimates for Hurricane Helene’s Damage

Meanwhile, AccuWeather has revised its estimates for the total damage caused by Hurricane Helene to between $225 billion and $250 billion. The update includes costs from extensive infrastructure damage, prolonged power outages, and losses to key industries such as tourism and renewable energy in the southern U.S. Helene is now considered one of the most destructive storms in U.S. history, alongside Hurricanes Katrina, Sandy, and Harvey.

With 2024 already marked by historic storms like Milton, Helene, and earlier storms Beryl and Debby, this hurricane season is becoming one of the costliest on record.

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