The recent impact of Hurricane Helene on Florida and nearby states has left a trail of destruction, with storm surge damage, flooding, and widespread power outages. As recovery efforts get underway, the insurance industry is also preparing for an influx of claims.
The storm's intensity, while not the worst Florida has faced, will translate into a substantial volume of insurance claims over the coming weeks, a claims expert told Insurance Business. Claims adjusters face significant hurdles in the aftermath of the storm, including access to areas cut off by flooding.
"So far, we’re seeing significant storm surge damage, reaching as far down as Fort Myers, with flooding there and in Tampa Bay,” said Richard Folkman (pictured), vice president of catastrophe operations for Crawford & Company.
Hurricane Helene first made landfall on Sept. 26 in the Big Bend region of Florida. The category 4 storm’s winds reached 140mph, dealing devastating damage to communities in Florida, North Carolina, Tennessee, Georgia, Virginia, South Carolina, and West Virginia.
According to CNN reports, at least 130 people have died across six states. The death toll is expected to rise as many more individuals remain missing. Hundreds of roads are still closed and around 2 million residents are without power.
Satellite technology firm ICEYE reported about 100,000 buildings across the affected areas had been impacted by Helene. Insured losses from wind and storm surges are estimated between $3 billion to $5 billion, according to CoreLogic.
As with many hurricanes that hit Florida, the Big Bend region of the state bore the brunt of the storm, an area often targeted by such storms due to its geography.
“Tampa narrowly avoided a potentially devastating hit—if the storm had shifted slightly east, forcing water directly into the bay, the loss of life would have been tremendous. While we missed that scenario, there’s still a lot of damage,” Folkman said.
"I think we’re going to see both flood claims, likely a large number, and wind damage claims. Florida has done a lot with building codes to secure structures and weatherproof against some damage. During Ian, the damage wasn’t as bad as expected because of those efforts.
“As the storm moved into Georgia, high winds caused power outages, and trees came down on houses, cars, and fences. Now it’s up in North Carolina, where they're seeing a lot of flooding, which is unusual for them, so we’ll see claims from that as well."
While Hurricane Helene dealt serious damage, Folkman said the storm was not on the same level as historic hurricanes like Harvey or Sandy. The key difference, he explained, lies in the speed of the storm.
“This was a fast-moving storm, so that does make a big difference,” he said. Unlike Harvey, which stalled over Texas and caused catastrophic flooding, Helene moved swiftly across the region, sparing communities from prolonged devastation.
The full picture of the damage will reveal itself gradually to claims adjusters on the ground. Folkman said that safety is a top priority for these professionals as they race to get to damaged properties.
“One of the biggest challenges for adjusters, though, is simply finding a place to stay near their claims,” said Folkman. “Sometimes you're driving two or three hours each way, which can mean six or seven hours of travel daily.
“The hardest part is getting there – adjusters come from all over the country, and insurers don’t have hundreds of people on standby in these areas.”
On a positive note, significant advancements in technology, including the use of drones, analytics and artificial intelligence (AI), have helped streamline the claims assessment process. This shift toward AI is allowing insurers to respond more quickly to customers, improving the overall claims experience.
“Everyone wants life to return to normal quickly, so we try to get to as many claims as fast as possible,” Folkman said.
Even as recovery efforts for Helene begin, Folkman cautioned that the hurricane season is far from over. He voiced concern about another potential storm brewing that could hit next week, emphasizing the need for continued vigilance, especially for insureds who haven’t yet taken steps to prepare their homes and ensure they have the necessary documentation in place for future claims.
“We’re not out of it until we get to November, and it’s looking to be a very active season,” Folkman said.
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