$13bn in property at risk as hurricane Michael approaches Florida

Florida is preparing for the impact of Hurricane Michael which could make landfall as a category 3 storm later this week, according to data provider CoreLogic.

On the forecast track, the centre of Michael is expected to move inland over the Florida Panhandle or Florida Big Bend area on Wednesday, Oct. 10, and then move northeastward across the southeastern United States, according to the National Hurricane Center(NHC).

Michael is currently a category 1 hurricane. Maximum sustained winds are near 90 mph (150 km/h) with higher gusts. Strengthening is expected, and Michael is forecast to be a major hurricane at landfall in Florida, the NHC warned. Weakening is expected after landfall as Michael moves through the southeastern US.

A Tropical Storm Watch is now in effect along the southeastern coast of the US from Fernandina Beach, Florida to South Santee River, South Carolina, according to the National Hurricane Center (NHC).

With 57,002 homes at risk of coastal storm surge totalling over $13 billion in reconstruction cost value (RCVs) across Florida, Michael is a fast-moving storm, CoreLogic noted. Hurricane-driven storm surge can cause significant property damage when high winds and low pressure cause water to amass inside the storm, releasing a powerful rush over land when the hurricane moves onshore, CoreLogic said.

Among the most exposed insurers in Florida as measured by market share (direct premium written) in business lines typically affected by severe storms is Universal Insurance Holdings Group (9.3%), State Farm Group (6.6%) and Tower Hill Group (6.5%), according to AM Best.

In Alabama, the insurers potentially most exposed by market share to hurricane Michael are State Farm Group (28.6%), Alfa Insurance Group (14.0%) and Allstate Insurance Group (11.4%).

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