Helene: Insurance company complaints few, though coverages eye-opening

(The Center Square) – As North Carolina rebuilds from the massive damage inflicted by Hurricane Helene, state regulators have not received widespread complaints about insurance companies refusing to pay claims that were covered by policies, a spokesman for the state's insurance commissioner says.

However, some homeowners are finding out that their policies didn't cover certain types of damage, such as flood and mudslides, spokesman Jason Tyson said.

"We have seen a lot of issues crop up," Tyson told The Center Square. "We don't have any data yet so we don't know if one issue is greater than the other. This was an unprecedented event. You had massive flooding in areas that had never seen that before on this scale. A lot of homeowners just didn't have the type of insurance that would have covered what the storm produced, like mudslides, rising water, wind damage."

There are disputes between homeowners and insurers over whether the damage was caused by wind or flood. There are also claims for sewer backups and long-term power outages that forced people to incur additional living expenses in hotels or other lodging, Tyson said.

Another issue is damage to vehicles from flooding which might be covered by auto insurance policies, he said.

So far, the state has not finished calculating the total amount of insured damage from the hurricane.

If insurance claims are denied, the state Department of Insurance may be able to help, Tyson added.

"We encourage consumers to call us so that we may confirm whether any claims are denied in error."

Only a small percentage of North Carolina homeowners have flood insurance, said Tyson.

Mudslides or rockslides is considered "specialty" coverage and not widespread in the state.

"I don't think anybody realized that this could happen," Tyson said. "I've heard it was a 500-year or 1,000-year event."

The state insurance office has a page on its website with more information on Hurricane Helene damage. It includes information on how homeowners can request mediation for disputes with insurance companies. There is no cost to consumers.

"An independent mediator, who has no connection with the insurance company, will be in charge of the mediation conference," according to the website.

During the mediation conference, the mediator "attempts to help the consumer and insurance company agree on an acceptable resolution to the disputed claim. The mediator cannot, however, make a decision on the claim."

Federal flood insurance claims are not eligible for this type of mediation, the website said.