Florida insurers have reported nearly $5.2 billion in payouts related to Hurricanes Helene and Milton, according to data from the Florida Office of Insurance Regulation (OIR). The two hurricanes resulted in 436,167 claims, of which 27.7% were closed without payment.
Hurricane Helene, a Category 4 storm, made landfall in late September in the sparsely populated Big Bend region of Florida before moving north and causing destruction in southeastern states.
Insurers cited various reasons for not paying on 16,919 of Helene's claims, with "some other reason" being the most common. Additionally, 9,502 claims were denied due to non-covered flood damage.
Approximately 59,000 private passenger auto claims were filed in connection with Helene. Insurers paid more than 34,000 of these claims but denied nearly 4,300, according to AM Best.
The majority of non-payments were categorized as "some other reason," which includes scenarios such as policyholders withdrawing claims or being unreachable, according to the OIR.
Hurricane Milton, a Category 3 storm, was responsible for the majority of estimated insured losses, totaling $3.18 billion. The storm made landfall near Sarasota in early October and traveled eastward across Central Florida.
As of Nov. 21, insurers had reported 300,662 Milton-related claims, of which 85,513 were closed without payment. More than half of these non-payments were also attributed to "some other reason."
State regulators have stated that they audit and examine insurer claims handling after catastrophes to ensure compliance with Florida law and the terms of the policies. For Milton, residential property claims closed with and without payment were reported to be nearly equal.
John Doyle, CEO of Marsh McLennan, said the impact of Hurricanes Helene and Milton will likely influence property insurance and reinsurance pricing in 2025. Doyle noted that the close timing and extensive damage caused by the two storms would challenge recovery efforts and strain industry resources.
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