Caribbean Faces Financial Strain as Hurricane Season Approaches

Mon Oct 20 2025 23:54:55 GMT+0300 (Eastern European Summer Time)

The Caribbean islands are grappling with skyrocketing home insurance costs amidst heightened risks from increasingly severe hurricanes. Residents recall past traumas while seeking affordability in protection for their homes.

As hurricane season looms over the Caribbean, residents are burdened by surging insurance costs following past hurricanes. Eight years after Hurricane Irma, many Barbudans still bear the scars of devastation, while insurance premiums have risen by up to 40% in some regions. The unique threats of natural disasters in the Caribbean, coupled with limited populations, contribute to these financial challenges. Local efforts for disaster preparedness continue as communities brace for the unpredictable hurricane season.

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 gone through the roof 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. I think the house should be sound enough but that's my added protection, he says.

With peak hurricane season now in full swing, Dwight is among many Caribbean people anxiously monitoring weather platforms for activity in the Atlantic. Should a system head his way, he will do as he did during Irma – hope and pray.

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.

Like Dwight, many Caribbean people build homes out of pocket, rather than opting for mortgages that can have high interest rates in this part of the world.

The Atlantic hurricane season runs from 1 June to 30 November, with the most activity occurring between mid-August and mid-October. The northern Caribbean nations are among the most at risk of a direct hit.

In deeply indebted nations like Antigua and Barbuda, agencies like the UNDP provide crucial support in post-storm recovery, as rebuilding efforts remain an ongoing concern for communities still recovering from previous disasters.