Florida Homeowners Struggle with Hurricane Insurance Denials
Florida homeowners are increasingly facing financial hardship as their insurance policies fail to cover hurricane damage. Recent data reveals a troubling trend of denied claims and high deductibles, leaving many residents to shoulder the burden of costly repairs.
According to new data from the state’s Office of Insurance Regulation, nearly half of all Hurricane Milton insurance claims have been closed without payment. A significant 41% of the 96,390 claims denied were rejected because the damage fell below the homeowners’ high deductibles.
One such homeowner, Riverview single dad Chad Zalva, was shocked to learn that his $4,500 in damage was well below his $7,200 deductible. “They’re just making straight profit,” Zalva told ABC Action News. Tampa resident Liz Ann, who paid for more coverage, also experienced a denial when her claim for storm damage was rejected because it didn’t exceed her $3,774 deductible. She questioned, “So it’s like you’re paying for this insurance for what purpose?”
The Growing Instability of Florida’s Insurance Market
These denials highlight the growing instability of Florida’s insurance market, a situation exacerbated by climate change. The combination of rising sea levels and stronger storms, fueled by climate change, leads to more frequent and severe disasters. Insurers are responding to these challenges by raising deductibles, increasing premiums, or withdrawing from high-risk areas entirely.
State law currently mandates hurricane deductibles of 2%, 5%, or even 10% of a home’s insured value. This means homeowners in disaster-prone areas could face tens of thousands of dollars out-of-pocket before receiving any insurance assistance. For example, a $300,000 home with a 10% deductible would require a staggering $30,000 out-of-pocket expense before insurance coverage kicks in. As a result, more homeowners may be left with unaffordable repairs, potentially leading to abandonment or financial distress.
What’s Being Done About Insurance Coverage?
Amid these challenges, some organizations and policymakers are pushing for insurance reforms in Florida. Consumer advocacy groups are requesting legislative changes to lower mandatory deductibles and increase transparency in the claims process. In the meantime, homeowners can take steps to reduce their insurance burden by investing in climate-resilient home improvements, like impact-resistant roofing and floodproofing.
On a larger scale, addressing the root cause of extreme weather events—global overheating—is critical. Transitioning away from fossil fuels and investing in clean energy could help mitigate the intensity and frequency of such disasters. With insurance companies increasingly leaving high-risk areas, the system must adapt to protect homeowners.
Until comprehensive changes are implemented, Floridians will continue to navigate a complex insurance landscape. They must contend with policies that may offer little financial shield when they need it most.
