Homeowners or future buyers need to read this,, insurance rates are expected to rise in the wake of hurricane Katrina. But agents warn, don't pass blame on just one storm.
Insurance companies base future estimates on past storms, including Charlie, Frances and Ivan from last year's hurricane season. They also base rate increases on predictions of storms for upcoming years.
Jeffrey Grady, Florida Association of Insurance Agents, said, “Our area's residents who live close to the Gulf. It would not be a far stretch to believe that in the next year to two years we could see some increases due to Katrina.”
Even insurance companies are insured and when these "re-insurance" agents raise their rates, it causes a domino effect. That is when many residents' rates go up.