Katrina's gulf coast devastation, will it spread misery our way in terms of insurance rate increases?
Jeffrey Grady, President/CEO, FL Association of Insurance Agents, said, "Unfortunately, the events of this magnitude affect more than just the place where the storm comes ashore. Companies buy insurance themselves."
Insurance companies buy what is called re-insurance and that is where the possible rate hikes come in.
Re-insurance can cause a domino effect that trickles down to the homeowners.
But no need to panic, although agents say homeowners can expect to see a rate increase, insurance agencies say hikes are not caused by the damage of just one storm.
If insurance companies need to make rate adjustments they must seek those through the office of insurance regulations.