What Is “Catastrophe Modeling” in Fort Lauderdale Property Insurance?

The insurance industry is far more complex than many people realize, and it is filled with complex terms and processes that few understand. However, some of these concepts may have a real effect on your property insurance policy, your premiums, and even the housing market. One of the most important processes for insurance companies today is called “catastrophe modeling.” What exactly is this process, and how does it affect property insurance in Fort Lauderdale?

Catastrophe Modeling Explained 

Through catastrophe modeling, insurance companies in Florida attempt to predict the future. You might say that this is impossible, and to some extent it is. But with careful analysis of historical data, geographical information, and mathematics, it might just be possible to get a sense of what is about to happen.

Catastrophe modeling factors in historical data from tens of thousands of years ago. It considers the Earth’s natural cycles, including pre-historic floods that occurred before humans even settled in Fort Lauderdale in large numbers.

Why Is Catastrophe Modeling Important? 

Catastrophe modeling makes sense for insurance companies, but risk assessment and aversion are their top priorities. When a company stands to lose billions of dollars after a major storm, it makes sense to carefully predict when that storm might happen.

But how does catastrophe modeling impact you? Based on the results of this analysis, an insurance company might decide to raise your premiums. If you live in an at-risk area, catastrophe modeling could be the reason you’re paying a significant amount of your living costs to your insurer.

The good news is that catastrophe modeling isn’t just based on geographical location. Instead, this process takes into account many factors – including the unique features of your home. For example, your home might be better equipped to withstand the next major storm due to more robust materials, a sturdy roof, and more.

This is one of the most important things to understand about catastrophe modeling. Although it might seem like the insurance company is simply trying to predict the next big storm, what it’s actually doing is predicting whether your home will withstand the next major storm.

This means that if you make the necessary improvements to your home, you could reduce your premiums. You can also reduce your premiums by properly maintaining your home – especially your roof, garage doors, and windows. Although this might seem like a lot of effort, it could make a real difference on your insurance bill.

 Can a Property Insurance Lawyer in Fort Lauderdale Help Me? 

At Geyer Fuxa Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Sources:

 nbcmiami.com/responds/see-how-catastrophe-modeling-impacts-property-insurance-rates/3589187/

fathom.global/insight/introduction-to-catastrophe-modeling/