As the danger posed by Hurricanes Helene and Milton fades, countless homeowners and business operators in Florida and the Southeastern United States now face the daunting task of going through insurance claims to restore their lives.
“You experience trauma during such losses, and at some point, you’re just thankful to be alive,” noted Don Hornstein, an expert in insurance law from the University of North Carolina. “However, once past that, you are confronted with the demanding business of rebuilding your life. It’s a challenging situation.”
Hurricane Helene, a Category 4 storm, initially struck Florida’s Gulf Coast on September 26, unleashing trillions of gallons of rain and wreaking havoc across several states. Tragically, at least 246 lives were lost, marking it as the deadliest hurricane to affect the U.S. mainland since Hurricane Katrina, according to data from the National Hurricane Center.
Two weeks later, Hurricane Milton followed, causing the deaths of at least 11 people. This Category 3 storm devastated coastal areas, demolished homes, inundated streets with mud, and triggered a series of destructive tornadoes.
The estimated insured losses from both storms could rise to $55 billion, according to risk management firm Moody’s RMS.
In the wake of such disasters, thoughts of property insurance often take a backseat to immediate safety concerns. However, filing insurance claims becomes an essential part of moving forward. Many people invest in these policies with the expectation that they will provide a safety net during tough times. Unfortunately, coverage can sometimes fall short of what policyholders expect or believe they are entitled to.
Rhoda Moehring, turning 86 this month, has little confidence in insurance companies aiding her efforts to recover flooded rental homes in Steinhatchee, a river town in Florida’s Big Bend region.
“I’m often left with nothing from these claims,” Moehring recounted. “‘Was that covered?’ The answer is usually ‘No,’ and the cycle continues. As a result, I don’t place much faith in it.”
Moehring is unsure about her policy details and plans to rely on her son’s help as she navigates the claims process.
For homeowners and business owners, some key steps should be remembered when filing claims after a natural disaster.
**ACT QUICKLY, EVALUATE YOUR POLICY**
Once the immediate crisis has passed, homeowners or business proprietors should first reach out to their insurance agent or broker. Typically, the window to file a claim is around 60 days post-disaster.
Different insurance policies address various types of damages. During your initial consultation, it’s crucial to have a comprehensive understanding of your policy, including coverage limits, deductibles, and exclusions. This way, you can make a preliminary assessment of what is and isn’t covered, and if filing a claim is warranted, experts recommend.
Insurance policies can be complex, especially regarding payouts, as they often contain specific percentage formulas. For instance, roof damage claims may depend on factors like roofing material, roof age, and even wind speed at the time of damage. Subsequently, the payout could be calculated based on the insured value against the replacement cost, as highlighted by Amy Bach, the executive director of a consumer advocacy group.
Homeowners should consider whether it makes sense to file a claim if they anticipate only a minor payment since this could affect their claims history negatively. This is particularly crucial for those without flood coverage, as standard home insurance policies usually cover wind damage but not flooding.
While Helene was mainly a flood event, disputes may arise over damages attributed to “wind-driven rain” from Milton. Hornstein explains that the distinction between wind and water damage is often subtle yet distinct, determined by technical experts. If there is ambiguity, the law tends to favor insurance companies.
“If the home suffers simultaneous destruction from both flood and wind, it typically won’t be covered by private insurance,” Hornstein remarked.
Business owners should confirm whether they possess business income or business interruption insurance, which assists in covering income loss and associated costs when a business must temporarily close.
**DOCUMENT EVERYTHING**
When filing an insurance claim, meticulous record-keeping is vital. Capture both pre- and post-disaster photos and videos to help jog your memory regarding what has been lost, as well as provide evidence to support your settlement claims. For businesses, maintaining records of unusual expenses incurred due to the hurricane is equally essential, according to Steve Powell, executive vice president of a claims management firm.
After filing a claim, an insurance adjuster will assess the damage, usually within a few days under normal conditions. It’s crucial to be responsive to adjusters and ensure they adequately document all observed damage.
While frustrations can arise during the claims process, it’s essential to remain calm, even knowing adjusters may be under considerable stress themselves, according to Lawrence White, an economics professor.
“Try to remain composed and reasonable during interactions,” suggested White.
If disagreements arise regarding the adjuster’s assessment, property owners might consider hiring a public adjuster for a second opinion, who can then assist in negotiations with the insurance company. However, it’s important to understand the public adjuster’s fees and obtain their references first.
“Insurance companies typically have the upper hand; having a public adjuster helps to level the playing field for consumers by having someone who understands insurance and property damage,” added Bach.
**KNOW YOUR OPTIONS**
Be vigilant about deadlines related to accepting payments or filing appeals with insurance providers. Once you accept an insurance payout, know you can often update your claim if further damages are found during repairs, though there may be specific timeframes in which to reopen a claim.
In scenarios where negotiations with the insurance company become protracted, hiring an attorney might be a necessary last resort. Disputes that go to arbitration could extend for a year or more.
Around 90% of insurance claims are resolved without escalating into litigation, according to Charles Nyce, a professor of risk management and insurance.
**EXPLORE OTHER ASSISTANCE OPTIONS**
For those with limited or no insurance coverage, government assistance programs are available. The application procedures are similar to those for insurance claims: contact the relevant agency, verify eligibility, and submit an application.
The Federal Emergency Management Agency provides grants for home repairs or replacements for qualifying applicants. Additionally, the Department of Housing and Urban Development offers various grants for hurricane-affected individuals, while the Small Business Administration provides low-interest loans to homeowners, renters, businesses, and non-profits impacted by disasters. However, it has been cautioned that funding for these loans may soon be depleted unless Congress intervenes.
For more detailed information regarding available programs, individuals can consult government resources.
