The estimated $85 billion in damages hurricanes Harvey and Irma caused could spark insurance rate increases around the affected states, USA Today reports.
Here's what you should know:
1. JLT Re, a reinsurance brokerage and consulting firm, issued the damage estimates.
2. Investment Bank Imperial Capital Managing Director David Havens said decreased capital supporting the insurance market paired with steady demand could cause the insurance companies to raise rates in neighboring states to meet demand.
3. For Florida and Texas residents, rates are expected to increase, but that increase could cause neighboring states to also raise their rates.
4. Although insurance companies can't raise rates of all the states in the U.S., they could decrease the number of policies they underwrite in other states.