Bridgette Bello, a resident of Florida near Madeira Beach, took precautions by purchasing flood insurance, a hurricane-specific policy, and regular homeowners coverage, yet still faced delays and denials with her insurance claims after hurricanes Helene and Milton hit. The insurance industry categorized the storms as two separate events, complicating claims for those affected. With most property damage caused by flooding, many residents did not have flood insurance prior to the storms, leaving them with little legal recourse to challenge claims decisions. The combination of Helene and Milton is set to create major complications for residents with insurance.
Florida areas affected by the storms are projected to face catastrophic losses, as most homeowners insurance policies do not cover flood impact. Coined as a flood-driven event, Helene caused significant water damage, while Milton brought wind and rain, potentially leaving property owners without flood insurance unprotected against water damage claims. Insurers are facing modest losses from Helene, with challenges in determining claims if homes were impacted by both storms. Residents facing major water damage may not be able to afford rebuilding, leading many to consider walking away from their properties.
Victims without regular homeowners insurance, like 81-year-old Patti Drew in Punta Gorda, are turning to GoFundMe pages for relief, as FEMA provides the only financial assistance available to help with recovery efforts. Those with flood insurance from the National Flood Insurance Program (NFIP) are facing financial calamity due to coverage limitations. The NFIP only covers losses up to 50% of a property’s value, leaving homeowners to pay out of pocket for any costs beyond that mark to bring their properties into compliance with FEMA regulations.
Policyholders facing denials from insurance companies may be tempted to sue, but recent reforms in Florida have made it difficult for homeowners to initiate legal action against their insurers. The reforms aimed to limit the flood of contingency cases that were impacting the insurance industry in the state. The threat of legal action has reduced, leading to more denials from insurance companies. Calls for more comprehensive reforms are emerging in Florida, with state officials acknowledging a need for changes in how the insurance industry addresses hurricane damage. The state is familiar with such storms, prompting demands for solutions that benefit all Floridians.
