FIRST AIRED: October 8, 2016

Nice work! Enjoy the show!

×

You’re busy. We get it.

Stay on top of the news with our Editor’s Picks newsletter.

US Edition
Intl. Edition
Unsubscribe at any time. One click, it’s gone.

Thanks for signing up!

We've got more news

Get our editor’s daily email summary of what’s going on in the world.

US Edition
Intl. Edition
Replay Program

Business

Hurricane Matthew tests the limits of U.S. insurance industry

Opening sequence

Opening sequence

Business

Hurricane Matthew tests the limits of U.S. insurance industry

0:00
17:14
More Info

COMING UP:Hurricane Matthew tests the limits of U.S. insurance industry

×

Transcript

00:00:01
>> Business signs knocked down like a block of Legos on the Florida Coast, roofs ripped off homes like pieces of paper. Add to that, damage caused by waters whipped into a frenzy by the hundred plus mile hour winds of hurricane Matthew. The repair bills stretching up the Atlantic from Florida to South Carolina estimated to hit as much as $30 billion.
00:00:22
And the insurance industry may have trouble picking up the tab, says Reuters correspondent David Morgan.>> Private insurance industry in Florida has changed dramatically. It's currently dominated by smaller relatively new firms that some people fear could be undercapitalized.>> Which means these insurers lack the experience of dealing with a major storm and may not have enough money to meet a rush of claims.
00:00:50
But they're not the only ones who haven't lived through a major hurricane. In Florida alone, the population along the coast has surged to 20 million since the start of the millennium. That's a 27% gain according to Census data. Those new residents may be in for a shock when they try to collect on their insurance policies.
00:01:11
>> Insurance companies will sell insurance against wind damage but sometimes there are clauses that the policy holder is unaware of which say that there won't be any payment if the wind damage is accompanied by water damage.>> Flood insurance isn't even covered by private insurers. For that homeowners turned to the Government's National Flood Insurance Program.
00:01:37
Well, good luck in getting a claim paid quickly. The agency is more than $20 billion in debt as claims from other natural disasters pile up. Congressional approval is needed to borrow more money which can only mean one thing for homeowners, a huge delay before they get a check in hand.