The Florida Office of Insurance Regulation (OIR) has recently launched a new website aimed at providing the public with updated information on hurricane insurance claims. This initiative comes in response to concerns about how insurance companies are handling claims following Hurricanes Helene and Milton.
The OIR’s website reveals that many claims that were closed without payment were primarily due to damage that did not exceed deductibles or were related to flood losses that are not covered by standard homeowners insurance. This move is part of the OIR’s effort to increase transparency in the claims process and address allegations of unfair claim denials from policyholders and consumer advocates.
Insurance Commissioner Mike Yaworsky emphasized the importance of investigating any claims of misconduct by insurers. He stated that if the OIR finds any questionable practices, they will take action against the companies involved.
As of February 28, insurers had closed 81.7% of the nearly 344,000 claims filed for Hurricane Milton, leaving over 35,000 claims open without payment. Among the claims closed without payment, 41% were due to damage below the deductible, while 4% were denied because of flood-related issues. For Hurricane Helene, about 88% of claims were paid, but of the 46,656 claims closed without payment, over 33% were attributed to damage below deductibles.
The OIR also pointed out that many policyholders must first receive a denial letter from their property insurer before they can access federal flood coverage through the National Flood Insurance Program. This requirement may lead to a higher number of claims being marked as closed without payment after storms.
The estimated total insured losses from Hurricane Milton stand at approximately $4.27 billion, while losses from Hurricane Helene are estimated at $2.39 billion. These figures encompass various types of claims, including property and business interruption.
While Florida has faced significant challenges with unpaid claims, other states have also been affected. North Carolina, for example, dealt with severe damage from Hurricane Helene, which caused about $59.6 billion in damages and resulted in 105 fatalities. Unlike Florida, much of the damage in North Carolina was due to inland flooding, particularly in areas with low flood insurance coverage.
As the OIR continues to monitor the situation, it hopes that the new website will help clarify the claims process and provide much-needed information to those affected by these storms.