Many families and businesses are struggling to rebuild in the wake of Hurricane Milton. The storm's unprecedented winds, flooding, and debris have severely damaged countless homes and structures, displacing families and forcing businesses to close temporarily.
Why Are Hurricane Milton Insurance Claims Being Denied?
After Hurricane Milton, thousands of Florida residents are facing additional hardships as their insurance claims are denied or left unresolved. According to the Florida Office of Insurance Regulation (FLIOR), more than 37,000 insurance claims were closed without payment following Hurricanes Milton and Helene. This troubling statistic has left many Florida residents frustrated and uncertain about their ability to recover financially.
Denial Rates and Unresolved Claims Following Hurricane Milton
As of October 23, 2024, 84.2% of claims related to Hurricane Milton are still incomplete, awaiting resolution that may either result in a payout or denial. Additionally, 10.5% of the 359,391 claims filed for both hurricanes—Milton and Helene—have already been denied, with insurers refusing to make payments.
Here’s what you need to know:
- The types of claims filed following these storms range from residential damage to commercial property, private flood coverage, business interruption, and even vehicle damage
- Residential claims make up a significant portion of those applications, with over 237,000 claims submitted to insurers in Florida
- Among these, 16,946 residential claims have been closed without payment, leaving homeowners without the compensation they expected to aid in their recovery
Reasons Behind Denied Claims
Insurance claims can be denied for various reasons, often leaving policyholders confused or disappointed. According to FLIOR and experts in the insurance industry, common reasons for denial or non-payment include:
- Lack of Sufficient Documentation: Insurers require extensive evidence to validate claims. Missing documents or incomplete information can result in denial.
- Policy Exclusions: Standard homeowners' policies often do not cover flood damage. Separate flood insurance is necessary for flood-related claims, leading to frequent denials for policyholders without specific flood coverage.
- Missed Payments or Deadlines: Lapsed premium payments or missed filing deadlines can result in an insurer closing the claim without payment.
- Suspicion of Fraud: Insurance companies may deny claims they suspect of being fraudulent, adding a layer of scrutiny to post-hurricane claims.
These hurdles have left many residents unable to access the funds they need to rebuild. With most residential claims, the impact is particularly challenging for homeowners trying to repair or replace damaged structures.
The High Cost of Insurance in Florida and the Burden of Denials
Florida residents pay some of the highest home insurance rates in the country. For example:
- The average annual premium for a home valued at $300,000 is now $5,527—significantly higher than in neighboring states like Georgia or Alabama
- This steep cost adds financial pressure for homeowners, who may expect their high premiums to guarantee protection but find themselves left with denied claims in their most urgent moments of need
