Storms may cause some insurers to stop Fla. policies

Due to the numerous amounts of hurricanes in Florida between 2004 and 2005, many small, private insurance companies may have to shut down or raise their rates extremely high to stay in business. It is estimated that the losses for insurance companies from hurricane Wilma will range from $4 billion to $10 billion. Private insurers are going to have to stop writing policies in Florida and push them to get the state's insurance-of-last-resort program. Average Florida rates are already $738 for insurance policies, which is thirty three percent more than the national average.

If private insurance companies begin increasing their rates, how will people be able to afford the high costs? Or will the public companies take over and force the private companies to shut down completely? Would this eventually cause a monopoly for homeowner insurance in Florida? Could the frequent and numerous hurricanes force all insurance companies out of Florida to a more secure state?