Why Insurance Claim Denials Are Surging in Florida: 3 Things Retiree Homeowners Can Do
Written by
Chris Adam
Edited by
Zuri Anderson
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For homeowners who live in a state like Florida where hurricanes can cause significant damage to houses, it can be a frustrating experience to deal with insurance.
Homeowners may face big deductibles and then delays or denials when it comes to the damage sustained from storms. According to a report from Realtor.com, as of February, home insurance companies in Florida paid half of the claims filed after Hurricanes Milton and Helene.
Here’s a closer look at why more homeowners are receiving claim denials and what retiree homeowners can do to help themselves ahead of the next big storm.
Reasons Why Denials Are Surging
“Florida has become an anti-policyholder climate, and the politics are skewed in favor of the insurance companies,” said Justin Cernitz, Esq., founding partner of Cernitz Law. “They will continue to deny and delay claims as long as they can, as the less they payout there’s more money for their executives and more money in reserves to invest in other things, which is how carriers really make their money.”
For their part, the leaders of some insurance companies have said they’re working hard to support homeowners, and some of the reasons for the denials have been that the damage was under the homeowners’ deductible or not covered under the policy.
Specific Actions for Retiree Homeowners
“Unless you can self-insure and self-fund repairs, insurance, while not great, is still the best option in the event of a catastrophic loss,” Cernitz said.
Here are three specific actions Cernitz said retiree homeowners can do:
- Review their homeowners insurance policy carefully.
- Understand what is and is not covered in the event of a claim. (For example, hurricane and flood insurance are perhaps not included in a standard homeowner policy.)
- Document their property condition now to have evidence ready if they ever need to file a claim.
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