Quiet hurricane season winds down in Florida

This satellite image provided by NOAA and taken at 3:15 p.m. EDT Thursday Oct. 20, 2005 shows Hurricane Wilma as it approaches the Mexican Yucatan peninsula. Wilma, a Category 4 storm with winds of 150 mph, churned toward the Yucatan peninsula and south Florida after its outer bands hit Haiti and Jamaica, where it killed at least 13 people. The storm was expected to strike Cancun and its surrounding resorts and sideswipe Cuba early Friday. (AP Photo/NOAA)

Despite Florida being spared the brunt of massive hurricanes this season, homeowners should not expect to see a decrease in their property insurance.

"Rates are not going down, because we will have a hurricane again and we have to prepare for it in advance," said Lynne McChristian, the Florida representative for Insurance Information Institute based in Tampa.

Moreover, homeowners' insurance rates in Florida are higher in storm-free years so there's money in advance to pay for when the state has a major storm, McChristian explained.

Today is the last day of hurricane season. The last major hurricane to hit Southwest Florida was Hurricane Wilma in 2005.

Though Southwest Florida had an inactive hurricane season, the 2011 season ended with 19 named storms, including Hurricane Irene, a monstrous hurricane along the entire U.S. east coast.

"In general, we were certainly lucky this year, compared to the volume of storms in the Atlantic," said Dan Summers, director of Collier County's Bureau of Emergency Services.

On average, Florida has a Category 3 hurricane or more severe every three years, McChristian said.

"The property insurance market has not been profitable in Florida since 1992, when Hurricane Andrew hit," McChristian said.

From 1992 to today, the economic losses would be higher if a hurricane hit today since there is more development and that is what insurance is based on, she said.

State-backed Citizens Property Insurance Corp. officials explained how rates are determined.

"When looking at rates and rate need, it is important to remember that rates related to wind exposure are developed based upon the expected losses and expenses for the time period the rate will be charged. This is done using catastrophe modeling and real expense costs," Citizens' spokeswoman Christine Ashburn said in an email.

"So, while we have been lucky here in Florida for the last several years, the risk of hurricane loss is still significant and Citizens rate need reflects that risk."

On average, the return of net worth for insurance companies from 2000-09 in the United States was 4.7 percent, compared with 0.5 percent in Florida, according to an Insurance Information Institute report.

Due to antitrust laws, State Farm officials were prohibited from speaking about homeowner insurance rates.

In addition, State Farm could not share the number of policyholders in Collier and Lee counties due to proprietary reasons, State Farm spokesman Michael Grimes said.

"We are certainly happy for all the residents in the state of Florida who have been spared of a hurricane this year," said Grimes.

Although Southwest Florida residents were fortunate not endure the wrath of a major storm, Summers urged residents to not forget that they live in a vulnerable location and should prepare for next year's hurricane season.

__ Connect with Tracy X. Miguel at www.naplesnews.com/staff/tracy_x_miguel/