After the devastating onslaught of Hurricanes Helene and Milton, which ravaged the southeastern U.S. this past month, millions of homeowners and business owners are grappling with the aftermath, trying to navigate the complex world of insurance claims to rebuild their lives. The need for financial recovery has never been more urgent as the destruction left behind by these storms is both extensive and heart-wrenching.
The high winds and torrential rains from these hurricanes have left behind trails of destruction across several states, with Helene, classified as a Category 4 storm, resulting in at least 246 reported fatalities, marking it as the deadliest hurricane to strike the U.S. mainland since Hurricane Katrina. Just weeks later, Hurricane Milton, coming on the heels of Helene, continued the trend of calamity, with at least 11 additional lives lost.
Estimations from risk management analysts at Moody’s RMS suggest the total insured loss from these recent hurricanes could reach around $55 billion. Many affected individuals find themselves overwhelmed, shifting from the immediate response of securing safety to confronting the often frustrating insurance claims process. “You’re just traumatized when you have these losses. At some point, you’re just glad you’re alive,” said Don Hornstein, who specializes in insurance law at the University of North Carolina. With emotions running high, the transition to the business side of recovery can feel especially burdensome.
For those like Rhoda Moehring, who found herself facing property damage to her rental homes due to flooding, the prospects of receiving adequate support from insurance providers feel grim. “I usually get zip with these things,” Moehring shared, expressing her frustrations with past claims. “Was I insured for this? No, sorry, you weren’t.” It’s clear her lack of confidence due to previous disappointing experiences with insurance companies looms heavily over her ability to recover her losses this time around.
Those embarking on the insurance claims process should first reach out to their respective insurance agents or brokers. The clock is ticking—most policies stipulate filing needs to occur within about 60 days following the disaster. Understanding the nuances of one’s individual policy is pivotal; this means familiarizing oneself with the coverage limits, deductibles, and specific exclusions outlined. This preparation could be the difference between receiving assistance and facing additional financial burdens. “You may have different deductibles depending on various factors, such as the material of your roof or its age,” emphasizes Amy Bach, executive director of the consumer advocacy group United Policyholders.
The nature of the damages sustained also plays a significant role. After Hurricane Helene, which primarily caused flooding, and Milton, which brought wind-related damage, there can be disputes over what constitutes as “wind-driven rain.” According to Hornstein, if damages were inflicted simultaneously by both water and wind, private insurance may opt not to cover the losses. “If the house was destroyed by flood and concurrently (by) wind, it’s not covered by private insurance,” he explained, highlighting the challenging distinctions within insurance claims.
Business owners are also at risk of significant financial strain; many don’t realize they may have business interruption insurance. This policy can cover lost income and other related costs—expenses such as employee salaries and rent during unplanned closures. Documenting losses through photographs, videos, and records is necessary for substantiative claims when dealing with insurance adjusters post-disaster.
Once claims are filed, property owners can expect the insurance company to send out adjusters to assess the damage. Making sure they see all the damage is important, and homeowners should keep their composure even when frustrations mount. Lawrence White, economics professor at NYU Stern, stresses the importance of maintaining calm: “Try not to come across as angry. Be reasonable.”
If discrepancies arise over the adjuster’s findings, homeowners have the option of hiring public adjusters to negotiate on their behalf. This move often levels the playing field against insurance companies, which typically hold all the leverage. “The insurance companies have totally the upper hand, and when there’s a public adjuster, it does level the playing field,” noted Bach.
Yet, for those whose policies might not cover damages adequately, there are still resources available. The Federal Emergency Management Agency (FEMA) provides various grants for home repairs, accessible through strict eligibility criteria. Application procedures often mirror those of insurance claims and potential applicants must act quickly to secure aid.
The Small Business Administration (SBA) offers low-interest loans to affected homeowners, renters, business owners, and even non-profits. The catch? They'll need Congress to replenish funds for these assistance programs, as they ran out of money pending new allocations, causing concern for those desperately hoping for financial support.
For many, rebuilding lives doesn’t start merely with cleaning up the wreckage but rather tackling the intricacies of insurance policies and claims amid their trauma. Sustaining mental health during this trying period ranks high on the list of recovery steps, as the emotional toll of hurricanes lingers long after the calm has returned. “It’s tough and requires mental resilience as individuals deal with losses and the hurdles of getting through the recovery process,” said Hornstein.
And so, as the southeast begins the arduous task of recovery, many are left to wonder: will their financial safety nets hold up, or will they be left to navigate these tumultuous waters alone? The urgency for clarity amid such confusion has never been more pronounced as communities strive to rebuild stronger than before.
