Financial Strain from Hurricane Season Hits Caribbean Nations

Fri Oct 17 2025 23:25:10 GMT+0300 (Eastern European Summer Time)

As hurricane season unfolds, residents in the Caribbean face rising home insurance costs amid the threat of severe storms, igniting fears reminiscent of past disasters.

The Caribbean is grappling with soaring home insurance premiums as the hurricane season approaches, driven by the increased risk of more intense cyclones and limited populations to share the cost. Many residents recall the devastation brought by Hurricane Irma in 2017, with fear and trepidation rising as storms threaten to strike again.

For some Barbudans, thunderstorms still trigger flashbacks of the night in September 2017 when they lost everything they owned to Hurricane Irma's devastating winds.

Eight years on, while memories may be close to hand, home insurance for many on Barbuda and other islands in the Caribbean's hurricane belt is more prohibitively expensive than ever.

Across the region, premiums have skyrocketed in the past two years, surging by as much as 40% on some islands, according to industry figures.

Experts blame a perfect storm of increasing risk – as the region sees worsening and more rapidly intensifying cyclones – yet tiny populations of people to pay for policies, equating to poor returns for insurance companies.

Dwight Benjamin's Barbuda home was one of few left relatively undamaged by Irma. After the storm, he invested in a one-room extension topped with a concrete roof that will serve as a shelter for his family should disaster strike again.

With peak hurricane season now in full swing, he is nervously monitoring weather forecasts for activity in the Atlantic. "I've never had insurance; most Barbudans don't really think it's worth it. It's just an added expense to the meagre resources we have," he explains.

Many Caribbean people build homes out of pocket, rather than opting for mortgages that can have exorbitant interest rates. A staggering number of homes on islands affected by hurricanes remain uninsured. In Jamaica, only 20% are reported to have coverage, and just half in Barbados.

As well as storms, the region faces risks from earthquakes and volcanoes. Peter Levy, boss of Jamaican insurance company BCIC, points out that these threats contribute to an already high cost of home insurance. To illustrate, one Antiguan insurance firm charges premiums of between 1.3% and 1.7% of a home's value, starkly higher than rates in countries like the UK.

The Atlantic hurricane season runs from June 1 to November 30, with the peak months being particularly stressful for those with memories of past disasters. Mohammid Walbrook recalls the uproarious winds tearing the roof from his parents' home during Irma.

For nations like Antigua and Barbuda, which are heavily indebted, aid from organizations like the UNDP acts as a crucial lifeline post-disaster. Prime Minister Gaston Browne estimated that rebuilding Barbuda after Irma topped $200 million, necessitating aid from various international sources.

The UNDP provided significant funding for reconstruction efforts and employed local workers, revitalizing the economy and promoting resilient building practices. However, the increasing frequency and intensity of storms remain a pressing concern for the region’s future resilience.

With fate unknown, residents like Dwight persevere with resilience, closely monitoring the skies but hoping to keep the memories of Hurricane Irma from repeating.