Insurance Disputes Following a Hurricane

As another horrendous hurricane season decimates portions of Florida, many residents are finding that the thousands of dollars spent on insurance to help them rebuild are not going to pay off as they’d hoped. It turns out that there are lots of ways insurance companies manage to wiggle out of paying up.

Trouble in the Insurance Industry 

Floridians know that insurance is getting tougher and more expensive to get.  Rates have just about doubled in the last few years and will likely keep climbing. That’s partly because hurricanes are becoming more frequent and more devastating in modern times. On top of that, construction costs are on the rise, making damage repairs higher than homeowners may have expected. With these issues compounded by lawsuits against insurance companies, roughly a dozen companies have become insolvent since 2020. The ones that are still in business are at risk of losing more and more money every year.

 Homeowner’s Insurance 

There is no homeowner’s policy on the planet that covers all of the damage from a hurricane. While limited coverage may address some wind damage to your roof, that will be a paltry sum compared to what you may require to repair a home that has suffered serious wind and flooding damage.

 Flood Insurance 

Less than one-fifth of Floridians have flood insurance.  While residents may think having hurricane insurance is enough, they need to know that these policies do not address damage caused by flooding. Any water damage that occurs as a result of storm surges or other outside water sources is only covered when coverage specifically addressing flooding is purchased.

 Type of Damage 

Policies vary widely. Some may cover damage caused by wind, but not by water.  Others may cover water damage, but not wind-driven rain damage. A home that suffers both wind and water damage may be subject to serious scrutiny to assign the “correct” cause of the damage.

Cash or Replacement Value 

Many insurance policies name a specific value.  If you lose your roof in a hurricane, you may qualify for a particular dollar amount, which may fall short of the actual replacement value.

Deductibles 

One way insurance companies have limited their liabilities is by creating deductibles for homeowners. In addition to the deductible attached to your regular homeowner’s insurance, hurricane insurance typically has a deductible that’s a percentage of the total damage covered. These rates generally range between two and five percent of the home’s value, and must be paid before the insurance company kicks in their portion of the coverage.

Fighting for You 

The compassionate Kissimmee personal injury attorneys at Salazar & Kelly Law Group sympathize with those who have endured serious losses of life and property due to a hurricane.  If you find yourself fighting to get your insurance company to pay up, we can help. To discuss, schedule a confidential consultation in our Kissimmee office today.

Source:

news.fiu.edu/2022/the-big-reason-florida-insurance-companies-are-failing-isnt-just-hurricane-risk-its-fraud-and-lawsuits