Hurricane Matthew could impact insurance costs around the country

Big losses in Florida could impact insurance rates in Houston.

HOUSTON - Hurricane Matthew could cost the insurance industry billions of dollars and has the potential to impact insurance costs around the country.

Experts say that all major disasters can add to insurance costs. 

Some estimate that the damage caused by Hurricane Matthew could be between $20-30 billion, making it among the costliest in U.S. history.

Insurance agent Leash Yu says big losses in Florida could indirectly affect premiums in Houston as insurance carriers try to recoup losses.

"If they start paying out way too many claims based on the storms, then the impact nationally could be felt, but I think it could be a minimal impact," said Yu.

Hurricane Katrina was the most costly catastrophe in U.S. history, costing the insurance industry $41 billion. In the years following, homeowners nationwide saw a 7.6% increase in their premiums. 

The insurance industry says it's well positioned to handle the damages from Matthew. The Insurance Information Institute says it does not expect the hurricane to significantly impact costs. 


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