Thousands of Hurricane Michael claims still unpaid

Florida law requires that insurance claims on residential property be paid within 90 days, but the clock does not start running when the claim is made as many people think. Rather, insurance companies have 90 days from the point at which the insured and the insurer agree about the value of the claim. This dynamic has led to a situation in which residential property owners are often required to wait much longer than that before they receive compensation for their insured losses.

2 common reasons for burst water pipe claim denial

You may think you have coverage for anything that could possibly happen to your home. However, you need to take note to make sure you have both water and flooding damage coverage. Although they sound similar, the latter deals with burst pipes and water leaking from appliances in your home while the former typically encompasses water flooding the nearby area that reaches your house. 

State event aims to resolve hurricane damage claims

Florida officials are convening public events in order to assist Hurricane Michael victims who are struggling with denied insurance claims or delayed payouts. The category five hurricane devastated many homes and businesses in Florida with high winds and torrential rain damaging roofs, bringing down trees and shattering windows. Despite the massive damage inflicted by the storm, some Florida homeowners have not yet received an insurance payment despite filing claims. The state's Chief Financial Officer is holding a series of Insurance Village events to promote better communication between hurricane victims and insurance companies.

How to prepare for a hurricane before it hits

Companies in states like Florida should have disaster plans that can help them prepare for a hurricane. Being proactive can mean the difference between a minor loss and a one that bankrupts a business. Ideally, every employee will know what the plan is and their role if a disaster strikes. It also is important that a plan is flexible enough to account for what is actually happening in a given scenario.

Insurance companies still sorting out Hurricane Michael claims

Hurricane Michael made landfall in Florida in October 2018, and the storm is believed to be responsible for more than $6.9 billion in insured losses. There were 148,347 claims made related to the storm, and of those claims, 20,484 have yet to be resolved according to state authorities. That represents roughly 14% of all claims made related to the storm. In Bay County, 17% of the 88,830 claims related to Hurricane Michael have yet to be resolved.

The insurance commissioner in Florida has warned insurance companies not to delay efforts to close any unresolved cases in a timely manner. He said that their reputation of the insurance industry was at stake as they work to help policyholders. The commissioner told the governor and other state lawmakers that he was concerned over the number of claims that were still outstanding as of July 2019.

Property damage and tax law

If a Florida property is damaged in a flood or hurricane, its owner may be entitled to a tax deduction for the losses that have been incurred. However, there are several conditions that must be met to qualify for it. First, the damage must have been caused by a storm recognized as a federal disaster. Second, the deduction is only available if damages were more than 10% of the owner's adjusted gross income.

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