With untold numbers of homes destroyed by hurricanes Helen and Milton in recent weeks, homeowners across the Southeast are in close contact with their insurance agents until their claims are resolved. I will take it.
Experts say this is not the end; climate change will only intensify the frequency and cost of future insurance claims. Loretta Waters, a spokeswoman for the Insurance Information Institute, said disaster losses along the coast are likely to increase further in the coming years, due in part to a significant increase in development.
“Loss related to natural disasters has increased tenfold,” Waters said.
Early estimates put Milton’s losses in Florida at more than $50 billion. Helen made landfall in Florida before flooding eastern North Carolina and is estimated to have caused at least $11 billion in damage. Just two years ago, Hurricane Ian caused more than $50 billion in losses in South Florida. Compare this to Hurricane Katrina in 2005, which caused $65 billion in damage (adjusted to more than $101 billion in 2023 dollars).
Although exact numbers for the recent storm are not yet known, FEMA has already awarded $344 million to victims of Helen, which killed more than 200 people in six states. As of Friday, Milton’s death toll was at least 16.
Waters said property and casualty insurance companies were struggling to remain profitable even before the pandemic, but premium rates weren’t keeping pace with rising costs. The institute’s three-year economic analysis of the pandemic found that inflation related to replacement costs for homeowners rose by 55% and continues to rise, pushing up insurance coverage prices, he said. .
When insurance companies are unable to meet their financial obligations, policyholders are left without coverage when they need it most.
Let’s do it
When people begin the recovery process, their first call may be to their insurance company, which is “a very emotional time for people, some of whom have lost everything,” Waters said. .
Some companies visit affected communities and hold events to connect policyholders and agents. Whether a resident attends, calls, fills out an online form or downloads their insurance company’s app, the most important thing is to be prepared and start filing a claim as soon as possible. . Completing the process and identifying a contractor can be time consuming and can lead to difficulties in obtaining materials and further delays.
You also need the right type of coverage. A distinction is made between flood losses caused by rushing water and rain and damage caused by hurricane winds. Most of Helen’s destruction was due to flooding, but Milton caused more losses from storms, Waters said. Additionally, if a home was hit by two hurricanes, two separate claims would need to be filed, Waters said.
Understand the scope
Residents of eastern North Carolina certainly weren’t expecting flooding from the hurricane. But even in areas that don’t typically face severe storms, wildfires, or flooding, climate change is wreaking havoc on expected conditions.
Experts recommend that residents should ask about compensation, as well as additional living expenses such as food, baby supplies and lodging, when considering next steps. FEMA is offering a $750 cash grant that does not need to be repaid and can provide immediate assistance.
Experts say it’s important not only to understand the extent of the loss, but also to know what will be covered. “Policyholders should read their insurance terms and conditions. All. Every. Single. Page. If you don’t understand something, talk to your agent or company.” Author, Professor, Insurance Company and Insured said expert witness Chantal M. Roberts.
“Policyholders should always read their insurance policy. Read everything.”
But the support goes beyond paying private insurance. Additionally, FEMA grants are available, and residents and businesses may also be eligible for low-interest loans from the Small Business Administration for property repairs or replacements.
Landlords may not be required to compensate tenants for alternative accommodation, and tenants are advised to check their rental agreement to see if there is a credit for the number of days the home is uninhabitable. Rental insurance may provide coverage. This is an inexpensive option that can be useful after a disaster.
In most cases, injury or death is not covered by property insurance. These are covered by health insurance and life insurance. However, your insurance agent can advise you about liability coverage if a guest or tenant is injured on your property during a hurricane.
Finances can be difficult
Some may wish to pick up and depart before the repairs are completed or even before the insurance claim is paid. It’s possible, but not always preferable. Although complex tax calculations are required, residents may be able to write off losses. The IRS has granted tax filing extensions to residents of Alabama, Georgia, North Carolina, South Carolina and some states of Florida, Tennessee and Virginia. May 1, 2025 is the new filing deadline and tax date for these regions.
IRS grants residents extension to file tax returns
Homeowners may be eligible for mortgage forgiveness for 12 months after a natural disaster, so they are encouraged to contact their lender to notify them of the condition of their home and their ability to pay. For mortgages insured by FHA or Native American mortgages under the Section 184 Indian Mortgage Guarantee Program, there is a 90-day moratorium on foreclosure.
Other resources
If you have a problem with your insurance company, your state insurance office may be able to provide guidance on how to file a complaint. Not sure what to believe with all the misinformation online? Check the facts on FEMA’s Hurricane Rumors page.
Checklists can help you get things in order. The National Association of Insurance Commissioners has a comprehensive website with information on what to do before and after a storm.
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