Hurricane Ian – Insuring against a hurricane

Between feeding family, finding gasoline and figuring out where to go if home is uninhabitable, filling out an insurance claim is probably the last thing most Floridians want to think about right now. But even as the state deals with damaged or destroyed homes, flooding, tree debris and downed power lines, residents affected by Hurricane Ian should also start filling out their disaster insurance claims, the Federal Emergency Management Agency (FEMA) said. The sooner they start on them, the sooner they'll get their payouts, FEMA said.

"Policyholders who evacuated, and who have not returned home, can start the flood insurance claims process even if they only suspect flood damage," the agency said in a news release. "They can provide specifics concerning the damage later, once local officials say it is safe to return to their property."

Here are some tips for getting the most out of a post-disaster insurance claim — and how to get money as quickly as possible.

Background: Massive losses

expected in shaky insurance market

Catastrophe modeling firm Karen Clark & Company estimates Hurricane Ian will lead to a privately insured loss of $63 billion and cause a total of $100 billion in damage, the largest hurricane loss in Florida's history.

That figure also would make Ian the hurricane with the second-highest insured loss in U.S. history, behind just Hurricane Katrina, which caused $89.7 billion in damages when converted to 2021 dollars, said Mark Friedlander, spokesman for the Insurance Information Institute.

According to the Insurance Information Institute, Florida has the highest property insurance rates in the nation. Florida homeowners pay an average of $4,231 per year for property insurance, nearly three times the U.S. average of $1,544, Friedlander said.

Property insurance rates in the state increased by 33% between 2021 and 2022 and by 27% between 2020 and 2021, he said.

Even before Hurricane Ian, the state's insurance industry was in trouble. Several insurers have failed or stopped writing policies. Florida insurers posted underwriting losses of more than $1 billion for each of the last two years, Friedlander said, and 27 companies that primarily write homeowners insurance are on a watch list by the state's insurance regulator over concerns about their financial health.

What if my flood insurance

recently expired?

People who opted not to renew their policies after they ran out might be OK, according to FEMA. Those whose policies recently expired should ask their insurance agent if they're within a renewal grace period.

"They may be able to renew and have their Ian losses covered," the agency said.

What to do if you don't

know your insurance company

Anyone who doesn't know who their insurance agent or company is may call 877-336-2627, according to FEMA. People who know their brokers also can contact them to get the correct claims number from the insurance carrier.

The sooner you fill out the form, the sooner you'll get your money

FEMA recommends filling out an insurance claim as quickly as possible. That's because people usually wait to fill out their claims until more pressing issues are resolved, which leads to a giant backlog, Delaney said.

"Some might be without power, so this is probably not the first thing that's top of mind, but the sooner they can complete the information the better," she said.

When will money arrive?

In a catastrophic event like a hurricane, it's hard to say. In a normal case without a hurricane, it could take about 30 days for a government program and a few weeks for a private plan, Delaney said.

For people who need money right away, FEMA said policyholders can ask their insurance company about advance payments to receive up to $20,000 to jumpstart recovery.

What to do if a claim is denied

If a claim is denied, even in part, consumers have several options.

National Flood Insurance policyholders have a right to appeal the denial to the agency, according to FEMA. An appeal must be submitted within 60 days after the date of the written denial letter. Only the things the insurance company declined can be appealed.

What other help is available?

Federal disaster assistance is available to people in 17 Florida counties, including Sarasota, Manatee and Charlotte. Assistance can include grants for temporary housing and home repairs, low-interest loans to cover uninsured property losses and other programs, according to FEMA.

Residents and business owners can apply for disaster assistance at DisasterAssistance.gov, by calling 800-621-3362 or by using the FEMA mobile app.

Disaster loans also are available through the U.S. Small Business Administration for both homeowners and companies. Businesses can borrow up to $2 million to repair or replace disaster-damaged or destroyed real estate, machinery and equipment, inventory and other assets, while homeowners can get up to $200,000 to repair or replace disaster-damaged or destroyed real estate.

Homeowners and renters also can borrow up to $40,000 to repair or replace damaged or destroyed personal property, according to the SBA. Interest rates are as low as 3.04% for businesses, 1.875% for nonprofits and 2.188% for homeowners.