Navigating Insurance Claims After Hurricanes Helene and Milton: Insights from an Insurance Agent

The recent back-to-back hurricanes, Helene and Milton, have left a trail of devastation across the U.S. Southeast and Gulf Coast, with estimated losses exceeding $50 billion. For homeowners and businesses affected by these storms, navigating the complex process of filing insurance claims can be daunting. In this article, we delve into the challenges faced by those seeking to recover from the damage and provide insights from an insurance agent on how to effectively manage the process.

1. Understanding Your Policy

The first step in filing an insurance claim is to thoroughly understand your policy. Homeowner insurance policies typically cover wind and general damage from hurricanes, but flood damage is covered under a distinct type of flood policy. This distinction is crucial because many homeowners may find their claims denied if they lack flood insurance, as seen in the aftermath of Hurricane Helene, which was predominantly a flood-related incident .

Attorney Daniel Karon advises that having an insurance agent review your policy with you can help clarify what you are covered for and what you are not. This can prevent misunderstandings and ensure that you are aware of any exclusions or limitations in your policy .

Additionally, it is essential to be aware of your deductible. If the damage to your home is minimal and inexpensive to repair, it might not be worth filing a claim because your premium could rise. Insurance agent Patrick Hanlon emphasizes that knowing this information helps you decide what is worth escalating to the insurance company .

2. Documenting Damage

Documentation is key when filing an insurance claim. Patrick Hanlon, CEO of Georgia real estate firm Home Buyers of Savannah, stresses the importance of taking pictures and videos before and after the storm. This documentation helps in comparing 'before' and 'after' visuals, which can significantly support your claim .

Hanlon also recommends thoroughly sweeping your house after the storm and taking pictures and videos again. This includes inspecting less trafficked areas like the attic, as water leaks can take time to reveal themselves .

3. Filing a Claim Promptly

Filing a claim as soon as possible is crucial. Insurance companies can get swamped with claims, and the faster you get it in, the greater the likelihood that it will be addressed and paid out first. Even if you don't have all the information yet, just getting the process started is important .

Mark Friedlander from the Insurance Information Institute emphasizes that even if you don't have all the details, initiating the claim process early can help ensure that your claim is processed more quickly .

4. Hiring a Reputable Contractor

When it comes to hiring a contractor to repair your property, it's essential to do your homework. Look for a reputable contractor who is insured and registered with the Better Business Bureau. Be alert to scammers and low-ball offers; if it sounds too good to be true, it probably is .

Attorney Daniel Karon warns about potential scams where contractors take deposits but never show up to do the work. Working with your insurance company to ensure that the contractor is reputable can help prevent these issues .

5. Understanding 'Loss of Use' Clauses

Most homeowner insurance policies have 'loss of use' clauses that take effect when a home is rendered uninhabitable. This clause can provide interim expenses for temporary shelter, laundry services, and more. Shannon Martin from Bankrate advises asking your insurer if they will expedite this portion of the claim payment so you can find a place to stay .

Bridgette Bello, a resident of Madeira Beach near Tampa, encountered delays and denials regarding her damage claims despite having flood insurance and standard homeowners insurance. Her experience highlights the challenges faced by many Floridians in the aftermath of the dual hurricanes .

6. The Financial Impact on Homeowners

The financial repercussions from the storms are likely to be nearly complete for many homeowners. Flooding has been the primary cause of property damage, yet most homeowners' insurance policies do not extend coverage for flood-related incidents. According to NBC analysis, fewer than 25% of residents in the hardest-hit regions of Florida possessed separate flood insurance prior to the storms .

For those with insurance, the combination of both storms introduces significant complications. The insurance industry has classified Hurricane Helene as predominantly a flood-related incident. Experts indicate that property owners without flood insurance may also find themselves unprotected against water damage resulting from Milton, due to the current wording of many insurance policies .

Patti Drew, an 81-year-old resident of Punta Gorda, did not have standard homeowners insurance. Her situation highlights the vulnerability of many homeowners who cannot afford or choose not to have comprehensive coverage. Living on a fixed income, Drew is relying on a GoFundMe campaign for financial relief .

7. The Impact on Auto Insurance

Beyond property damage, the hurricanes have also affected auto insurance. Nearly half of the 120,000 claims filed in Florida so far this year are for flooded vehicles from the two hurricanes. The damage isn't limited to Florida; many vehicles were affected in neighboring states, including Georgia, Tennessee, and the Carolinas .

Experts warn that the widespread losses could result in higher premiums for drivers. Florida's Insurance Commissioner has reassured residents that the property insurance market remains strong despite the damage from the hurricanes. However, as the true costs of these storms continue to unfold, Floridians may need to brace for potential increases in both property and auto insurance premiums .

8. The Future of Insurance in Florida

Florida's property insurance market is in a better position to handle these losses than it has been in years past. Recent legislative reforms have helped the industry shore up its finances. However, the auto insurance industry could face tougher challenges due to the high volume of flooded vehicle claims .

Experts like Mark Friedlander from the Insurance Information Institute emphasize that while homeowners may not see an immediate jump in premiums, several factors including global insurance market reactions and reinsurance renewals will determine the full impact over the next 9 to 10 months .

9. Conclusion

In conclusion, the aftermath of Hurricanes Helene and Milton has highlighted the complexities and challenges of navigating insurance claims. Understanding your policy, documenting damage, filing claims promptly, hiring reputable contractors, and being aware of 'loss of use' clauses are crucial steps in ensuring that your reconstruction costs are covered and repair work is completed in a timely manner. As the insurance industry continues to adapt to these unprecedented events, it is essential for homeowners to remain vigilant and informed about their coverage options.

For more information on managing insurance claims after natural disasters, visit Direct Post.