Understanding Home Insurance Claims In Florida After Hurricanes Helene And Milton

Home insurance providers in Florida have denied more than 37,000 claims following Hurricanes Helene and Milton. This situation raises significant concerns for homeowners relying on insurance to recover from devastating natural disasters. The aftermath of hurricanes can be overwhelming, with many individuals facing the dual challenge of rebuilding their lives while navigating the complicated insurance claims process.

According to data compiled by the Florida Office of Insurance Regulation (FLIOR), as of October 23, 84.2 percent of claims relating to Milton and 68.2 percent of Helene claims are not yet complete, which will either result in a payment or the claim being denied. This statistic highlights the uncertainty facing many Florida residents who are still waiting for crucial financial support to recover from the destruction caused by these hurricanes.

Across a total of 359,391 claims made so far for both incidents, 37,796, or 10.5 percent, have resulted in no payment being made. This denial rate exacerbates the financial strain on families and individuals already dealing with the physical and emotional toll of the hurricanes.

Hurricane Milton hit Florida at the beginning of October, killing at least 16 people and leaving millions without power. Two weeks earlier, Hurricane Helene had carved a path of destruction through several U.S. states, killing more than 200 people and causing widespread damage to homes and infrastructure. The devastating impact of these storms serves as a reminder of the importance of comprehensive insurance coverage and understanding the claims process.

How Many Claims Haven't Been Paid?

Hurricane Milton

As of October 23, there have been 237,231 claims made with Florida insurers. So far, 20,144 (8.5 percent) of all claims have been closed without payment, with 16,946 of them being residential claims. This indicates a troubling trend for homeowners, as they may find themselves without the necessary funds to repair or rebuild their properties.

Hurricane Helene

For Hurricane Helene claims, 122,160 claims have been made across all policy types. In total, 17,652 (14.4 percent) have been closed with no payment made, and 13,895 of them were for homes. The higher denial rate for Helene claims further highlights the challenges facing those affected by this catastrophic event.

Why are Insurance Claims Denied?

Insurance claims can be denied for various reasons, including but not limited to insufficient information, missed premium payments, fraudulent claims, or missed filing deadlines. A closed claim without payment is deemed not currently payable by the reporting insurer, as stipulated by FLOIR.

Mark Friedlander, director of corporate communications at the Insurance Information Institute, previously shared that, "There are a variety of reasons why a property insurance claim may be closed without payment." He noted that many of these cases are likely flood claims not covered by standard property insurance or flood insurance policies, which emphasizes the need for homeowners to understand their coverage thoroughly.

Previous Hurricanes

Previous major hurricanes, Idalia and Ian, have both had higher rates of claim denials than Milton and Helene. However, given that these took place in August 2023 and September 2022 respectively, the data offers a more complete picture of overall claims that were accepted and denied.

Of all 727,897 Hurricane Ian claims that have been closed, 198,028 were closed without payment (25 percent). For Idalia, of 18,926 closed claims, 7,383 (39 percent) have been denied so far. This trend serves as a cautionary tale for homeowners, highlighting the importance of being proactive when it comes to understanding and maintaining their insurance policies.

Florida residents pay some of the highest home insurance rates in the U.S. According to Bankrate, the average insurance cost for a home valued at $300,000 in October 2024 is $5,527 per year—way higher than the rate for a home of the same value in neighboring Georgia ($2,071) and Alabama ($2,745). The average home insurance premium in Florida is $3,242 more expensive than the national average of $2,285.

Do you live in Florida and have had an insurance payment rejected by your insurer? Get in touch with a.higham@newsweek.com.