Effects of Hurricane Andrew in Florida
Strong winds from the hurricane significantly affected four counties in the state, which damaged or destroyed over 730,000 houses and buildings, while leaving more than 1 million without power. The storm surge impacted portions of Miami-Dade County, peaking at around 16.9 feet (5.2 m) just north of Homestead near the Burger King International Headquarters; the surge caused significant damage to boats and to the Charles Deering Estate. The nationwide maximum rainfall total from the hurricane was 13.98 inches (355 mm) in the western portion of Miami-Dade County. No major flooding was reported in the state. The hurricane caused about $25.3 billion (1992 USD) in damage and 44 deaths in the state—15 directly from the storm's effects and 29 indirectly related. Many other sources, however, estimated that Andrew caused more than $32 billion in damage in the state. Andrew was, at the time, the costliest hurricane in the history of the United States; it was surpassed in subsequent years by Hurricane Katrina in 2005, Hurricane Ike in 2008, Hurricane Sandy in 2012, and hurricanes Harvey, Irma, and Maria in 2017.
Citizens Property Insurance Corporation
Hurricane Andrew in 1992 was the costliest storm the United States had experienced, with $26.5 billion in damage. It took a huge bite out of the reserves for claims held by 30 insurance companies doing business in Florida. Eleven insurance companies were bankrupted, while others stopped writing or renewing property insurance policies in the state. Those that remained raised premiums and deductibles across the board and limited the number of high-risk policies they wrote. Almost 1 million coastal homeowners were unable to find any company willing to insure their homes, so the Florida Legislature authorized the formation of the Florida Residential Property and Casualty Joint Underwriting Association (FRPCJUA) and the Florida Windstorm Underwriting Association (FWUA) as the insurers of last resort. The "Florida Hurricane Catastrophe Fund" was also created and managed by the state as a resource for Florida consumers and insurers. It is funded by assessments to every property insurance policy in the state.