Tag: Hurricane Irma

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.

According to the Palm Beach Post, with Florida only one and a half months away from the next hurricane season, less than 57 percent of Hurricane Irma insurance claims have been closed with insurance payments, leaving many home and business owners at a loss, wondering if they will ever hear back on their insurance claims, and whether perhaps those claims will be denied due to the $8.6 billion backlog on them.

In addition, industry officials recently acknowledged that they may have underpaid on tens of thousands of claims they declared closed after September. For example, Florida state-run Citizens Property Insurance just reopened more than 24,000 Hurricane Irma claims to review as more information has become available.

With so many Florida property owners feeling abandoned and on their own, insurance companies are now concerned about litigation. In particular, it is of concern that many claims are declared closed in the first place, only to be reopened once legal concerns are expressed.

When it comes to hurricane claims, the last thing that any Floridian wants to hear is that their claim has been denied. And yet that is the case for many in our state, especially when it comes to flood claims.

In fact, according to statements made by the Federal Emergency Management Agency (FEMA) in this recent Miami Herald coverage, regardless of what flood zone maps might be telling you regarding whether or not you need to purchase flood insurance, everyone in Florida needs flood insurance.

Irma Delivered Historic Flooding

When Hurricane Irma hit Florida in September, it rolled across the Lower Keys and pushed a storm surge across the islands, continuing to swamp the coastline as it moved along Southwest Florida. Many homes filled up with mud five feet deep, and water swamped the business district, washing out over the seawalls and out of the Miami River. In Jacksonville in particular, the high tide caused the St. Johns River to swell and lead to the worst flooding in a century.

Even three months later, Hurricane Irma and corresponding hurricane insurance claim denials here in Florida are affecting businesses and negatively impacting tourism. While the Florida Keys in particular typically attract more than three million visitors a year—especially right around after Christmas is over—many of the big resorts remain closed after Hurricane Irma. And when hotels are closed, subsequent businesses—such as restaurants—also suffer.

Irma was Florida’s first major hurricane since 2004-2005, and left millions of Floridians without electricity; causing widespread damage; especially in the agricultural industry.

Hurricane Irma’s Cost to Florida

Hurricane Irma left its financial mark on the state of Florida: The category four hurricane caused more than $500 million in damages and destroyed more than 1,100 homes. Many of the properties that were damaged but not entirely destroyed are projected to remain closed until at least next fall, and many business owners have projected that it could take a full year or more to recover their losses.