Florida Insurance Company Rejects More Than 37 Claims from Hurricanes Helen and Milton
According to data compiled by the Florida Office of Insurance Regulation (FLOIR), as of October 23, 84,2% of Milton-related claims and 68,2% of Helen-related claims were outstanding. It is not yet known whether they will be paid, writes Newsweek.
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Residential claims make up a significant proportion of compensation claims, with the remainder relating to commercial property, floods, business interruption, commercial and private motor insurance.
Of the 359 claims filed so far in both incidents, 391 (37%) have been denied.
On the subject: Hurricane Helen Destroys Florida Town, Causes Unprecedented Damage in North Carolina
Hurricane Milton struck Florida in early October, killing at least 16 people and leaving millions without power. Two weeks earlier, Hurricane Helene had carved a destructive path through several U.S. states, killing more than 200 people and causing extensive damage to homes and infrastructure.
How many claims remained unpaid?
Hurricane Milton
As of October 23, there were 237 claims filed against Florida insurers. To date, 231 (20%) of those have been closed without payouts, including 144 residential claims.
Hurricane Milton-Related Home Insurance Claims
| Category | Number of applications submitted | Open applications with payment | Open applications without payment | Closed applications with payment | Closed applications without payment | Percentage of closed applications |
| Total residential real estate | 190,623 | 6,788 | 157,247 | 9,642 | 16,946 | 13.90% |
| Homeowners | 151,449 | 5,812 | 122,237 | 8,415 | 14,985 | 15.50% |
| Residential buildings | 17,760 | 258 | 16,021 | 314 | 1,167 | 8.30% |
| Mobile homes | 19,786 | 717 | 17,394 | 910 | 765 | 8.50% |
Hurricane Helen
There were 122 claims filed across all policy types in the aftermath of Hurricane Helene. A total of 160 (17%) closed without payouts, and 652 of those were for homes.
Hurricane Helen-Related Home Insurance Claims
| Category | Number of applications submitted | Open applications with payment | Open applications without payment | Closed applications with payment | Closed applications without payment | Percentage of closed applications |
| Residential buildings | 5,265 | 169 | 3,457 | 448 | 1,191 | 31.10% |
| Mobile homes | 5,705 | 612 | 3,015 | 1,387 | 691 | 36.40% |
| Homeowners | 43,830 | 2,607 | 23,596 | 5,666 | 11,961 | 40.20% |
| Total for all residential real estate | 55,392 | 3,393 | 30,592 | 7,512 | 13,895 | 38.60% |
Why are insurance claims rejected?
Insurance claims can be rejected for a number of reasons, including insufficient information, missed premiums, fraudulent claims, or missed filing deadlines. A closed claim without payment is one that is not currently payable by the reporting insurer, FLOIR said.
“There are a number of reasons why property insurance claims may be closed without compensation,” said Mark Friedlander, director of corporate communications for the Insurance Information Institute. “These include flood claims, which are not covered by standard property insurance, condo insurance, or a flood insurance policy. You need flood insurance to cover a flood claim.”
Flood insurance only protects against certain types of damage caused by internal incidents, such as leaking plumbing, but does not include flooding. Flood insurance is required to cover damage from flooding and is an important supplement, especially if the home is in an area at risk of flooding.
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Previous hurricanes
Previous major hurricanes Ian and Idalia had higher claim denial rates than Milton and Helen, but given that they occurred in September 2022 and August 2023, respectively, the data provides a more complete picture of the total number of claims that were accepted and denied.
Of the 727 closed Hurricane Ian claims, 897 have not been paid (198%). As for Idalia, of the 028 closed claims, 25 (18%) have been denied to date.
Floridians have some of the highest home insurance rates in the U.S. The average cost to insure a $300 home in October 000 is $2024 per year, according to Bankrate, which is much higher than the rate for a home of the same value in neighboring Georgia ($5) and Alabama ($527). That makes the average cost of home insurance in Florida $2 more expensive than the national average ($071).
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