Insurance companies in FLA might go insolvent due to IAN

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Hurricane Ian could cripple Florida's already-fragile homeowners insurance market. Experts say a major storm like Ian could push some of those insurance companies into insolvency, making it harder for people to collect on claims.

Since January 2020, at least a dozen insurance companies in the state have gone out of business, including six this year alone. Nearly 30 others are on the Florida Office of Insurance Regulation's "Watch List" because of financial instability.

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Every policy holder in the state of Florida, home and auto, should be watching this storm very carefully because it could have a direct impact on their pocketbooks," said Brandes. He predicts policy holders will see rate hikes of up to 40% next year as a result of Ian.

A spokesperson for Citizens tells ABC News that if their preliminary estimate of 225,000 claims and $3.8 billion in losses holds, the insurer of last resort would be in a position to pay all claims without having to levy a "hurricane tax" on residents.