Category 4 Hurricane Matthew could be the deal breaker or maker for many of the young insurance firms that emerged in Florida following the aftermath of Hurricane Wilma in 2004-2005.
With Matthew’s path still uncertain, insurers are urging the general public to protect themselves and their homes, while asserting that they are ready to cover any claims that may be filed following the foul weather.
“We are in full catastrophe mode,” Richard Widdicombe, president of Heritage Property and Casualty, told reporters. Heritage is the third largest insurer of personal residential property with almost 90,000 policy holders, according to state data.
Further, Paul Handerhan, senior vice president for public policy of the Florida Association for Insurance Reform, said regulated homeowner insurers in the state should be able to cover claims no matter the extent of the damage and the duration of the storm.
The state Office of Insurance Regulation has subjected 67 of these companies to simulated “catastrophic stress tests,” which determine their capability to cover the cost of claims during a damaging storm, and all of the companies passed the test.
“The insurance industry as a whole is well-capitalized because it’s had a decade without storms to build up surplus,” Florida spokeswoman for the Insurance Information Institute Lynne McChristian said.
