Storms might cause some !rms to quit insuring in Fla.

This year’s onslaught of hurricanes — punctuated this week by Wilma — likely will cause some insurers to stop writing policies in Florida and push more residents into the state’s insurance-of- last- resort program.

Estimates of insured losses from Wilma range from $4 billion to $10 billion. The four hurricanes last year and the same number so far in 2005 in the state indicate that “ there might be more years like this ahead,” says Robert Hartwig of the Insurance Information Institute. “ That means that the risks associated with insuring properties in these areas have substantially increased.”

As a result, private insurance companies are likely to raise homeowners- insurance rates in the “ double-digit” percentages, while the quasi- state- run insurance plan, Citizens Property Insurance Corp., might have to increase premiums even more, Hartwig says.

On average, Florida residents pay $786 for homeowners insurance, 33% more than the nationally and one of the highest U.S. rates.

Citizens Property is the largestwriter of insurance in the state, ranking rst in total premiums written last year, at $ 1.4 billion. State Farm, Allstate and Nationwide are also top insurers. Besides raising rates, private insurers could opt not to renew policies in the state or pull out completely. After last year’s hurricanes, Allstate and Nationwide said they would stop writing new homeowners’ policies in Florida. Allstate also said this year that it would not renew 12.5% of its 758,000 homeowners policies in the state. Nationwide has said it won’t renew about 13.1% of its 266,200 homeowners policies.

Offsetting the trend of some insurance companies s leaving the state after last year’s storms, others have come into the market, says Beth Scott of the Florida Of ce of Insurance Regulation. If homeowners can’t get coverage from any private company, they can turn to Citizens, adds Scott, even though rates might be higher.

The string of hurricanes on the Gulf Coast is adding urgency to discussions about a national catastrophe program. One proposal would make coverage mandatory for all homeowners, spreading insurance risks across the country.