How strong is Hurricane Milton? It has been a Category 5 storm for the most part but its winds are at the higher end of the Saffir–Simpson Hurricane Wind Scale and there has been talk of creating a Category 6 for storms of its strength.  Not even two weeks after Hurricane Helene, it likely means more deaths, more injuries, and more property loss.

On the property side, it also means a challenge for insurance companies that will probably hike rates in answer. Insurance costs have soared in some areas. As Trepp reported in early October, the Tampa-St. Petersburg-Clearwater, FL MSA saw property insurance per square foot jump 132.2% from $264 to $613 between 2019 and 2023.

Former Goldman Sachs managing director Joseph Sumberg who now works for billionaire climate investor Tom Steyer told Bloomberg those in commercial real estate need to view insurance in a new way. Going forward deals and property valuations will need to include insurance costs, which are becoming high enough that it is killing some transactions.