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February 10, 2025 Property and Casualty News
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Do homeowners understand their weather event coverage?

By Susan Rupe

Homeowners who are recovering from a weather event face three main challenges, and one of them is uncertainty about what or how much their insurance will cover.

That was among the findings of a recent research project conducted by Stepwise Innovation and the Insurance Research Council, and sponsored by the Society of Insurance Research. The findings were reviewed during a recent webinar.

The researchers surveyed homeowners in the wake of Hurricanes Helene and Milton, which struck the U.S. in late 2024. The homeowners said they face three main challenges in recovering from a weather event. In addition to uncertainty about what their insurance will cover, homeowners said they were challenged by managing recovery on their own with little institutional support and finding a trustworthy contractor who will work with their insurance.

Danny Taft of Stepwise said lack of experience and knowledge leaves homeowners unsure of the support they can expect from insurers. In addition, he said the homeowners surveyed revealed that they are reluctant to file a claim following a weather event unless it is absolutely necessary, out of fear of dropped coverage or large premium increases.

Insurers must support homeowners in two areas, Taft said. Those two areas are resilience and recovery. Insurers can support these areas by:

  • Helping homeowners visualize the return on investment of making their homes more disaster resistant.
  • Simulating the impact of a disaster on a home to empower homeowners to prepare more effectively.
  • Using neighborhood data to create stronger, more resilient communities.
  • Partnering with local contractors to streamline pre-disaster hardening and accelerate post-disaster recovery.
  • Providing seamless, ongoing support to homeowners navigating disasters.

How homeowners react after a weather disaster

Nearly half of homeowners surveyed said they reported damage to their homes after a severe weather event, said Olesya Karpenko, IRC senior research analyst. About 45% said they used a contractor they found or who approached them after the disaster. Nearly 60% said they had to find temporary housing following a weather event because of damage to their home.

Urban residents are more likely than suburban or rural residents to file damage claims after severe weather, she said. Homeowners younger than age 45 were more likely than their older counterparts to file an insurance claim after a weather event.

Of those who said they filed a claim:

  • 68% used an assignment of benefits to authorize their repair company to bill their insurer.
  • 54% used a public adjuster to handle their insurance claim.
  • 47% contacted an attorney regarding their claim.

© Entire contents copyright 2025 by InsuranceNewsNet.com Inc. All rights reserved. No part of this article may be reprinted without the expressed written consent from InsuranceNewsNet.com.

 

 

 

 

Susan Rupe

Susan Rupe is editor in chief, magazine, for InsuranceNewsNet. She formerly served as communications director for an insurance agents' association and was an award-winning newspaper reporter and editor. Contact her at susan.rupe@innfeedback.com.

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