According to reports, Florida’s top insurer has not paid out on more than three-quarters of Hurricane Debby claims, which has sparked worries that a comparable amount may be rejected for damage from the more recent Hurricanes Helene and Milton.
Furthermore, a startling 77% of insurance claims related to Hurricane Debby, which hit Florida’s Big Bend region in early August, have been rejected by Citizens Property Insurance. This data is based on a NOTUS report. As of September 27, 51% of all Debby-related residential claims in the state had been resolved without any payment.
Florida insurance
Citizens Property Insurance was first founded as a state-backed insurer of last resort to help Floridians who were having trouble obtaining insurance because of the exorbitant rates charged by private insurers. With more than 1.2 million active policies as of October 2024, it has expanded throughout the years to become the Sunshine State’s biggest insurance company.
- High Citizens Property Insurance refusal rate for Hurricane Debby claims.
- Over 50% of claims pertaining to Debby are denied by the state as a whole.
- Citizens Property Insurance was established to assist locals who were paying exorbitant fees.
- With more than 1.2 million policyholders, it is currently Florida’s biggest insurer.
As citizens prepare for possible damages from Hurricanes Helene and Milton, the circumstances surrounding Hurricane Debby claims and Citizens Property Insurance’s performance underscore a crucial problem in Florida’s insurance market.
Knowing About Emergency Grants from FEMA
Consumers must first file a flood damage claim with their property insurer in order to be eligible for a FEMA (Federal Emergency Management Agency) emergency grant, according to insurance experts.
They must also provide evidence that their claim was rejected. For people without flood insurance, this criterion is vital.
Predicting Potential Future Events
Flood claims for Hurricanes Helene and Milton may also encounter difficulties when submitted to property insurance in a “similar scenario,” according to experts. This emphasizes how difficult it is for customers to cope with flood-related calamities.
The U.S. Senate Budget Committee Examines Climate Resilience in Citizens
A comprehensive study into Citizens’ ability to handle “increased underwriting losses stemming from climate-related extreme weather events” in 2023 has been initiated, led by Whitehouse, the chairman of the U.S. Senate Budget Committee.
Problems with Property Insurance for Floridians
Whitehouse emphasized the possible challenges of recovering billions of dollars from Floridians, who already pay more than four times the national average for property insurance.
“Attempting to recover these funds is economically and politically challenging, raising significant doubts about Citizens’ ability to swiftly settle claims,” he stated.
In the aftermath of Hurricane Debby on August 6, Sarasota, Florida, suffered significant flooding. More than three-quarters of the claims pertaining to this disaster were not paid by Florida’s top insurance, notwithstanding the destruction.
Commitment of Citizens to Policyholders
Citizens CEO Tim Cerio reiterated the company’s commitment in a letter to Whitehouse in December 2023, writing, “As Florida’s insurer of last resort, Citizens is structured to unconditionally protect its policyholders and ensure that claims are paid.”
Florida Governor Ron DeSantis recently said that Citizens, the state-run insurer, is “not solvent,” echoing remarks made by the White House earlier this year. He went on to say, “We can’t have millions of people depending on it because if a storm hits, it’s going to create significant problems for the state.”
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Citizens Insurance’s Obstacles
In recent years, the number of Citizens Insurance policies has significantly expanded. Due to financial losses from settlements and lawsuits, private insurers have withdrawn coverage and raised premiums, which is the main cause of this spike. Citizens now oversees 1.2 million active insurance, a significant increase from about 520,000 five years ago.
Attempts to Lower Policy Numbers
Citizens has started the process of depopulating hundreds of thousands of policies by moving them to other insurance companies in reaction to this growth. The goal of this action is to lessen the strain on the state-sponsored insurer.
- Policy Surge: The number of policies has significantly increased, rising from 520,000 to 1.2 million.
- Depopulation Strategy: The insurer is making a concerted effort to move policies to carriers in the private market.
- State Concerns: In the event of a significant storm, Governor DeSantis releases a warning about possible problems affecting the entire state.
Hurricane insurance claims have increased in the state of Florida following the recent storms Milton and Helene. These claims have been closely monitored by the Florida Office of Insurance Regulation (FLOIR), which has produced a thorough summary of the circumstances.
Hurricane Helene: An Overview of Claims
As of October 18, Florida insurance companies reported 55,392 claims for Hurricane Helene-affected residential properties. It is believed that these claims are worth about $570 million.
- Of these claims, about 38.6% have been resolved.
- 13,895 claims that were closed without payment are included in this.
- An additional 7,512 claims have been paid out.
Milton: A Greater Influence
A greater number of claims have been made in the wake of Hurricane Milton. A total of 178,374 claims for residential properties have been submitted to Florida’s insurance companies.
- These claims are projected to be worth an astounding $2.2 billion in total.
- To far, only approximately 11.4% of these claims have been resolved.
- This comprises 7,297 claims that have been paid and closed.
- 13,108 more claims have been closed without being paid.
