Storms can be devastating initially but the downstream effect on residents trying to recover can bring additional hardships.
SW Florida residents recently experienced this firsthand. Hurricane IAN came through Sept 28, 2022, a CAT 5 storm with 150 mph landfall, devastating areas of Lee, Charlotte, and Collier Counties while leaving many other area residents with substantial damage to their homes as well. The immediate response to help residents from people and groups within Florida and around the country was nothing short of phenomenal. Supplies, cleanup, electric power restoration help, road construction help, food, water, laundry services, housing, and donations poured in from everywhere. This was an amazing testament to the good in people to help others in a time of need, and help they did.
Then, for residents, the recovery process began. Contacting the insurance company, inventorying damages, and trying to get contractor repair quotes was difficult and overwhelming for many. Dealing with insurance was the next hurdle. Some people have stated their insurance company was good to work with, many others have said their experience was frustrating and unacceptable. Now, over seven months out, many residents working with insurance companies have made minimal to partial progress in getting their homes back together. Common complaints include ongoing delays, “denials” as a first response, and low-ball payments to cover repairs forcing residents to pay the additional expense and then negotiate to recover the actual cost difference.
Know Your Damage Costs?
A valuable tracking tool is now available, Storm Property Damage Tracker, which organizes all this information in one place. The Tracker then calculates if repairs are being covered or what your out-of-pocket costs will be when working with your insurance company. You get an immediate view of your repair situation so you are well-informed, especially if negotiations are needed.
Referencing a statement from the Storm Damage Impact on Residents blog, just seeing the damage to your home and property is difficult enough, the process of putting it back together can be equally stressful, both physically and mentally. From cleanup (inside & outside), securing your home from further damage, doing inventory of damages, getting repair quotes, and then the amount of time working with the insurance company, can be draining. Residents have been seeking resources and tools to help manage the recovery process, with some going to outside sources for help.
Florida has a unique homeowners insurance issue. Several insurance companies have dissolved, leaving residents in a difficult position. Their claims may be transferred to FIGA (Florida Insurance Guaranty Association) for resolution. For insurance, many have had to go through Citizens Property Insurance, the state-run carrier “of last resort” for residents that can’t find coverage from other insurers. This has created an “excess” number of policies under Citizens, now making them Florida’s largest insurer, which they were not originally designed for. To compound this, several existing insurers are not renewing policies which will have an impact as well. Citizens has started putting new guidelines in place to reduce policy numbers, in effort to get residents back into the private insurance market. Additionally, they are raising rates (14.2% on average) to build up reserves and noted that should Florida get hit with another major storm, Citizens policy holders could see a 45% increase in their premiums. They also are now requiring their policyholders to carry flood insurance, whether the policyholders were in a flood zone or not.
Relating this to the storm damage impact on residents, it has a far greater downstream impact. Current economic issues already have residents making life changes to make ends meet. Now, the impact of Hurricane IAN has compounded these struggles. Homeowner insurance premiums have increased significantly. People have stated their renewals have gone up 50% with some stating their premium doubled, and nothing they can do about it. If a current claim is “open” with the insurance company, they are stuck. Another insurance company will not write a new policy on a home if an open claim exists, therefore they are forced to pay the premium with their current insurance carrier. This is also an issue for people wanting to sell their home or buy a home. You effectively can’t do either if an open claim exists on the home you want to sell or buy because the Buyer cannot get insurance on the home until the claim is closed out.
Then there is auto insurance and, in some instances, boat insurance. Auto insurance in Florida is expensive from the beginning. Hurricane IAN significantly damaged and totaled cars, boats, RVs, other recreational vehicles. Now, in the hurricane aftermath, auto insurance too has increased to even higher rates. Boat insurance is expected to follow.
The point is, with the current economy, high insurance rates, utilities rates, and everyday living expenses being tough enough, storm damage and the recovery process can create additional stress and hardship. People should look into any means that can streamline their recovery process and reduce the accompanying stress. Although the insurance situation in Florida needs to be corrected and is being looked at, efforts made and bills passed need to also assess the downstream impact on the residents as well. The recovery will take time but will only be temporary. The devastation will be recovered and rebuilt to an even better place to live for residents, if they can still afford to stay.