Category: Hurricane Claims

September 10 marks the one-year anniversary of Hurricane Irma and the devastation it left in Florida. As we circle back to this date, it is crucial for a number of families and businesses that experienced damages due to the hurricane to think about potential hurricane claims, insurance policies, and deadlines to recover benefits.

After Irma, many businesses were simply focused on getting back up and running again. Filing an insurance claim was, for many, an overwhelming task to add to the chaos, especially given the many questions that had to first be answered before the claim could even be filed; questions such as: what losses can/should be claimed, under what provisions, am I covered for flood issues, etc. This only became more complicated by the many responses received by insurance companies, which sometimes refused to honor claims altogether—indicating that the policyholder had no coverage—for unclear reasons.

If your home was damaged or destroyed by a hurricane, every passing day might seem like an enormous challenge. Obviously, you want to receive a quick and fair settlement offer from your insurance company, but that’s rarely the case.

When filing an insurance claim after your property was damaged by a hurricane, you may wonder how long it will take to receive the settlement offer and get compensated for your damages and losses.

If your insurance company does not respond to your hurricane claim or refuses to make a fair settlement offer, do not hesitate to speak with an experienced hurricane insurance attorney in Fort Myers. Schedule a free consultation with our knowledgeable lawyers at HD Law Partners to discuss your case.

Hurricane deductible and its role in the timeline of your insurance claim

A hurricane deductible plays a major role in the timeline and outcome of your insurance claim in Florida. Insurance companies often require their policyholders who live in high-risk areas to pay a hurricane deductible, which is a certain amount that must be paid out of pocket before the insurer covers the policyholder’s hurricane-related damage.

The estimated damage – just to agricultural resources – from Hurricane Michael across Florida and several other states is forecast to go over $1.3 billion, and includes cotton farms, pecan farms, and poultry operations as some of the hardest hit. Hurricanes are especially damaging to cotton crops, leading to an increase in the price of cotton. It is clear that farmers in particular are going to need all the help they can get in order to recover, and most of that help will need to come from crop insurance.

Florida also suffered significant timber losses as well. An estimated three million acres of timber were damaged by the hurricane, along with other commodities. It will likely take years for the industry to recover and replace lost trees.

In anticipation of these losses and those expected to hit homeowners, in mid-October, Gov. Rick Scott ordered emergency changes to insurance rules as they apply Hurricane Michael recovery, specifically. Under these rules, not only do policyholders now have an extra 90 days to submit their claims, but insurance companies are prohibited from canceling or failing to renew homeowners’ policies on homes damaged by Hurricane Michael for 90 days as well. In addition, Florida’s insurance regulator issued an emergency order that freezes any rate hike for 90 days in order to support recovery efforts in areas impacted by the Hurricane.

Hurricane Irma cost the state of Florida approximately 2 million visitors and a loss of $1.5 billion in visitor spending. According to analyses, most waterfront tourism destinations also saw dramatic declines in the days immediately before the hurricane hit, which must also be taken into account in determining total lost income due to the storm event.

These statistics indicate just how important it is for hurricane claim insurance companies to thoroughly compensate businesses for damages, including lost business income, especially as we start to prepare for the next hurricane season.

South Florida Hotels Hit Hard

Perhaps no business owners feel this loss more than South Florida hotels, some of which have still not reopened due to significant water damage. In the days before the storm hit, a lot was done to move everything that was outside inside, as well as take other precautions that undoubtedly interfered with guests staying there, including staff and guests evacuating the hotel. The storm did damage to guestroom buildings, spas, drywall, paint, carpeting, and furniture, leading to mold and mildew, and occupancy inevitably plummeted long after the storm passed.

In late May, Coastal Breeze News featured an important article discussing when homeowners have tried for long enough to settle their Hurricane Irma claims with their insurance carriers, and whether there has been insurance bad faith. Below, we discuss this issue in greater detail.

Florida Homeowner Claims Bill of Rights

Florida has what’s known as the Homeowner Claims Bill of Rights, which every insurance company providing residential property insurance policies must provide to homeowners within 14 days of receiving any initial communication related to a claim (with the exception of any “state of emergency” declared by the Governor).

Specifically, the Bill of Rights provides that you have the right to:

The Bill of Rights also provides a number of recommendations, including:

Note, however, that the Bill of Rights does not create a civil cause of action against an insurer. When an insurance company acts in bad faith, a separate law in Florida creates a statutory bad faith cause of action against the insurance company which allows homeowners to recover costs and attorneys’ fees if they prevail. Still, it is wise to work with an experienced attorney to first file a Civil Remedy Notice with the Florida Department of Financial Services that the insurance company is acting in bad faith.