Why was your insurance claim denied? Broker explains key issue

TAMPA, Fla. (WFLA) — We're hearing from Tampa Bay area homeowners who say after Hurricane Ian, their insurance claim was denied.

This comes after 8 On Your Side revealed insurance companies closed nearly 200,000 Ian-related claims without payment.

Julie Swanson lives in a neighborhood just north of downtown Lakeland that's full of modest, single-story homes.

"I've been here since 1988 living in this house. My daddy left it to me," Julie said.

After her father passed, Julie moved into the family home. Then Hurricane Ian came, and rocked the foundation of her house and her life. The structure has been crumbling ever since.

"I'm starting to think the house might fall in. Anything could happen, and I'm here alone and I'm disabled and it need to be fixed," said Julie.

"Did it look like this before Hurricane Ian?" Investigator Mahsa Saeidi asked.

"No. No," Julie replied.

Julie says her insurance company closed her case without payment. Inspectors reportedly found the damage was caused by sinkhole activity, and at least partially existed before the storm.

"I don't understand it!" said Julie.

"There needs to be a sudden and accidental component for a claim to be considered," said Ronald R. Assise, an insurance broker..

Assise explains that for claims, the damage must be sudden and accidental. If you have damage that predates the storm, that's a problem.

On top of that, few Florida policies cover sinkholes. Instead, they contain what's called Catastrophic Ground Collapse coverage.

There must be an abrupt collapse of the ground, structural damage, depression visible to the naked eye and the homeowner must be ordered to vacate the structure.

It's not quite like sinkhole coverage:

"But is a much greater trigger of coverage for it to apply," said Assise.

"I need $17,000 to get it fixed. These are the two estimates," said Julie.

Julie turned to the state, trying to get help with her claim. 8 On Your Side contacted her insurer too.

She says her home is the only place she feels safe and she needs to feel stable while we're in the middle of the hurricane season.

Insurance brokers say the best advice is to review your policy with your agent and make sure you know what's covered and what's not.

For example, lanai's aren't covered, unless you specifically add that to your policy.

If you have a question or concern, email Mahsa at [email protected]