As communities across the Southeast recover from the devastating impacts of Hurricane Helene, they now face another storm: Hurricane Milton.
“The circumstances are tragic,” said Rick Sforzo, Senior Director, Claims Services, Burns & Wilcox, Atlanta, Georgia. “Our thoughts and prayers are going out to everyone there affected by these storms, and certainly those that have been affected by the multiple storms,” Sforzo said.
Insurance carriers expect an influx of claims under Homeowners Insurance and Flood Insurance policies, although some of those impacted may not be able to even begin this process due to local conditions, said Brad Turner, Vice President, National Product Manager, Flood, Burns & Wilcox, Morehead City, North Carolina.
It is very heartbreaking to see some of these communities and what they have had to go through.
“A lot of those communities just got decimated by Helene. Water was only recently restored in some places but is still not really drinkable, and electricity is going to take even longer. A lot of the roads were cut off or washed away, and these are mountainous areas where there are limited roads and access points to begin with,” said Turner, who recently helped deliver supplies to western North Carolina and eastern Tennessee. “It is very heartbreaking to see some of these communities and what they have had to go through.”
First steps: prioritize safety, collect documentation
According to an estimate from Moody’s RMS Event Response, Hurricane Helene could cause $8 billion to $14 billion in private-market insured losses in the U.S., plus an additional $2 billion in National Flood Insurance Program (NFIP) losses, Insurance Business reported Oct. 8. Based on some forecasts, Hurricane Milton will be even more devastating, possibly double that of Helene, the Tampa Bay Times reported on Oct. 7.
Anyone in the path of a hurricane should know that “safety is always the primary concern,” Turner said, adding that many clients have asked about their level of risk as Milton approaches. Erring on the side of caution is always suggested, he said. “This storm is presumably going to be deadly and very catastrophic. It is always better to get out of the way of the storm, and then property is obviously a secondary concern,” he said. “You can always restore property or evaluate that after the fact, but you cannot get life back.”
Once evacuated, homeowners should “listen to authorities and only return to the property when it is safe to do so,” Turner said. “Never worry about property if it is going to put somebody at risk.”
The first reaction that I hear from a claims perspective is the fear of the unknown: ‘Am I losing everything? How can I get back these possessions? Am I going to be OK? What do I have to do?’ That is where insurance steps in.
After the initial “triage” of evacuation, assessing the property for damage and mitigating further loss, get in touch with your insurance carrier as quickly as possible, Sforzo said. Having your Homeowners Insurance and Flood Insurance information readily available will be helpful, as well as photo documentation of damages.
“The first reaction that I hear from a claims perspective is the fear of the unknown. ‘Am I losing everything? How can I get back these possessions? Am I going to be OK? What do I have to do?’ That is where insurance steps in,” Sforzo said. “Until they hear from somebody with their insurance carrier, I think the fear is just overwhelming. That is where that relationship between their broker and Burns & Wilcox, and their insurance carriers, is very, very important.”
When filing a claim, it is important to be prepared with detailed information on your home and its features and contents. Photos would ideally be collected gradually over the years to create “a digital catalog of everything you have,” Turner said.
Then, when selecting contractors and other vendors for repair work, be wary of scams, Turner and Sforzo agreed. Shortly after Hurricane Helene hit North Carolina, the state’s commissioner of insurance warned residents that “scammers are everywhere,” advising homeowners to contact their insurance carrier before hiring anyone and to do research on the company, WTVD reported Oct. 1.
“There are a lot of individuals who will prey on those who are stressed out wanting to get life back to normal. Be very wary of somebody knocking on your door,” Turner said, and ask your adjuster before paying out of pocket for services that you are not certain are covered. “The adjuster is your most important point of contact.”
Differentiating damage from multiple storms
As Hurricane Milton headed toward Tampa Bay, authorities were still rushing to remove debris left from Hurricane Helene storm surge, FOX Weather reported Oct. 7. When a property is impacted by more than one severe weather event within a short period, “it is certainly complicated” to decipher for insurance purposes which caused the damage, Turner said, but documentation is key in these situations.
“Take pictures with timestamps, digitally document everything you can, and make sure that is backed up to the cloud, so you have that redundancy,” he recommended. “That way, it will be an easier adjustment process to ascertain where to apply coverage in certain situations. Communication is key, too. The adjuster is a great liaison, so stay in communication with them.”
Similarly, homeowners who are uncertain whether a claim may be covered under their Homeowners Insurance or Flood Insurance policy should know that it is OK to move forward anyway, he added. “Go ahead and report the claim and let the carrier work that out on the back end,” Turner said. “Most carriers are not going to penalize somebody for reporting a claim that is later withdrawn.”
Insurance carriers may take longer to respond post-hurricane, when many claims are being submitted, and some may use outside vendors to set up damage inspections. In the meantime, homeowners can review their Homeowners Insurance or Flood Insurance policies closely to find out about coverage details such as additional living expenses for hotel stays or food, and whether property will be covered based on replacement cost value or actual cash value, Sforzo said.
“You and your carrier can also assess all of that information together, and then you can have a plan,” he said. “Keep all of your receipts and be very careful about signing any agreement for repair work to be done until you can do your research.”
Many homeowners uninsured despite growing risks
According to data from CoreLogic, uninsured flood losses related to Hurricane Helene could reach between $20 billion and $30 billion. Despite ever-growing risks as severe weather events increase in severity and frequency, many homeowners throughout the U.S. do not carry Flood Insurance. For example, in East Tennessee, less than 1% of housing units are insured for flood damage, the Knoxville News Sentinel reported Oct. 7. In Florida, an estimated 20% of homeowners have Flood Insurance, WFTS Tampa Bay recently reported.
“A lot of individuals [affected by Hurricane Helene] did not have coverage for flood and were not required to buy flood coverage,” Turner said, noting that these recent disasters may not increase insurance uptake. “After Hurricane Ian, we saw the uptake in the state of Florida actually decrease. It depends on where, but I think we are definitely going to see a lot of uninsured loss because a Flood Insurance policy was not purchased.”
Have patience as much as you can. The insurance industry does want to make individuals whole.
As homeowners navigate the claims process after a hurricane, they should feel comfortable asking questions of their insurance carrier and adjuster. “In the end, insurance carriers do want to resolve these claims as quickly and fairly as possible,” Sforzo said. “They want to help. Be open in your communication and do not be afraid to talk to the adjusters and express any concerns.”
In the aftermath of a weather event that caused such widespread destruction, homeowners may be overwhelmed by the process of navigating insurance claims or attempting to access federal emergency funding, which is often inadequate for the extent of damage caused or offered only in the form of a loan.
“A lot of these individuals — like in western North Carolina, for example — have lost their entire property existence, and that is a very hard thing to recover from. Many of these homeowners have spent a lifetime working for these things,” Turner said. “Without the insurance in place, it can be really hard to recover.”
These events completely change lives. Education is key, be preemptive, and do not wait for a bank to tell you to shop these insurance coverages.
Homeowners may want to think of insurance like “a big safety net,” he added. “These events completely change lives,” he said. “Education is key, be preemptive, and do not wait for a bank to tell you to shop these insurance coverages.”
While no one wants to have to use their insurance, Sforzo said, today’s recent events “are ultimately what insurance is set up for.”
“These catastrophic events could cause total devastation from a financial perspective,” he said. “Think about what you have, what it costs, and what you would do if something bad happens. Companies like Burns & Wilcox can make sure they put you in a position where you have enough coverage when a catastrophic event happens. Have patience as much as you can. The insurance industry does want to make individuals whole.”
If you need assistance with one of your insured’s claims, Burns & Wilcox is here to help. Our in-house claims team advocates for brokers, agents, and insureds, ensuring the claims process runs smoothly.
You can email new claims reports to [email protected] or visit www.burnsandwilcox.com/claims for additional information.
