Top Reasons Why Hurricane Ian and Nicole Insurance Claims are Being Denied

Dealing with Denied Claims After Hurricane Ian and Nicole: Understanding Policy Types

Did your insurance claim get denied after Hurricane Ian and Nicole? It’s a common and disheartening experience for many. Unfortunately, all types of policies, whether for single-family homes, townhomes, condominiums, or apartments, are susceptible to claim denials after a hurricane.

In fact, the aftermath of a hurricane can leave policyholders facing a range of complex issues when it comes to insurance claims. From understanding the nuances of your policy type to navigating the appeals process, there’s a lot to consider.

To help you better understand the situation, let’s take a closer look at the different types of policies that are vulnerable to claim denials after a hurricane.

Top Reasons for Denied Claims After Hurricane Ian and Nicole

One of the biggest frustrations after a hurricane is finding out that your insurance claim has been denied. Unfortunately, this is a common occurrence, with many claims being denied due to lack of coverage. Here are some typical reasons why claims are being denied after Hurricane Ian and Nicole:

1. Business Property: If you have business property in your home that was damaged after a hurricane, it is unlikely to be covered under your homeowner’s policy. Most home policies exclude business property. To avoid this, homeowners should consider purchasing additional coverage for their business property or speak to their insurance provider to ensure that they have the correct coverage in place.
2. Highly Valuable Items: High-value property such as jewelry or antiques may be denied after Hurricane Ian and Nicole. While most homeowner policies cover basic personal property, such as clothing and furniture, they often exclude coverage for highly valuable items. Even if such items are covered, there may be a sublimit of $1,000. To avoid disappointment, homeowners should talk to their insurance provider to ensure that their most valuable belongings are adequately covered.
3. Property Covered by Other Policies: Another reason for denied claims is when the damaged property is covered under a different policy. For example, if a homeowner’s car or recreation vehicle is damaged during the hurricane, it will be covered by their auto insurance policy rather than their homeowner’s policy. Homeowners should be aware of what is covered by their different policies to avoid confusion and ensure that they have adequate coverage in place.

Why Claims Are Being Denied After Hurricane-Related Flood Damage

One of the biggest misconceptions that homeowners have is assuming their home insurance policies will cover flood damage caused by hurricanes. Unfortunately, this is not the case. As flood risks continue to grow, it’s important for homeowners to understand that flood coverage is a must-have in hurricane-prone areas.

Even mild tropical storms can bring devastating flooding, which is why homeowners need proper flood insurance. While the National Flood Insurance Program is a reliable option, some private insurance companies also offer flood coverage. Whatever option you choose, it’s essential not to overlook this crucial protection.

When assessing the damage to your home, it can be challenging to differentiate between flood and wind damage. However, your insurance company will send an adjuster to investigate the cause of damage. Be aware that claims are being denied due to a lack of flood insurance coverage, so it’s critical to be proactive and obtain proper coverage.

Claims Are Being Denied Due to High Deductibles After Hurricane Ian and Nicole

Many Florida and coastal homeowners have been opting for higher deductibles on their home insurance policies to lower their insurance costs. While this may result in lower premium payments, it can lead to issues when it comes time to file a claim after a hurricane.

The problem arises when homeowners experience wind or water damage from the hurricane, but not catastrophic damage. For example, a homeowner may have lost a few shingles or had a tree fall in their yard. While it’s fortunate that their home wasn’t severely damaged, they may still be responsible for the repair costs, especially if they selected a high percentage deductible.

It’s not uncommon for deductibles to be as high as 10 percent of the home’s total coverage. For instance, if a home is insured for $300,000, the deductible may be $30,000. In cases where homeowners experience minor damage after Hurricane Ian and Nicole, their insurance policies may not pay anything at all, leading to denied claims.

As such, it’s important to carefully consider the deductible amount when selecting a home insurance policy to avoid being caught off guard when filing a claim.

Why are Claims Being Denied After Hurricane Ian and Nicole?

After Hurricane Ian and Nicole, vandals took advantage of the situation and looted homes and businesses, causing additional damage. Unfortunately, vandalism may not be covered under your home insurance policy, and this can lead to denied claims. For instance, if you abandoned your home for an extended period, or if you were using it for commercial purposes, such as renting it out, your vandalism claim may be denied.

In the aftermath of a hurricane, you have a duty to mitigate damages to your property, as stated in your insurance policy. Taking reasonable measures such as boarding up broken windows, using tarps to cover damaged roofs, and controlling water damage by drying out your home and personal property are some of the actions you should take. Failing to mitigate damages can result in trouble with your claim.

If a tree on your property fell in your neighbor’s yard after Hurricane Ian and Nicole, your neighbor must file the claim on their home insurance policy. This can be frustrating, especially if you have little or no damage to your home.

After a large catastrophe like a hurricane, insurance companies bring in adjusters from other states to handle claims. They may even hire independent adjusters as contractors to handle the influx of claims. However, adjusters can make mistakes and deny claims wrongly. Out-of-state adjusters or independent adjusters may not be familiar with your state’s policy language, leading to mistakes and oversights.

If you think your claim was wrongly denied after Hurricane Ian and Nicole, contact us for help. Remember, claims are being denied, but you have the right to appeal and receive fair compensation for your losses.