It could possibly sound strange, however the founder and president of one of Florida’s major insurance companies offers a message for those who thinks they may have sustained damage from Hurricane Irma: “File a claim. It won’t count against you.”
Insurer: File your claim. It won’t be counted against you
Security First Insurance founder and president Locke Burt said he recently heard someone on TV urge home owners to never file claims for minor damage to property because that could possibly cause their rates to raise in the future.
For non-hurricane-related claims, that’s true, Burt said. Several non-weather-related claims filed within a few years will indeed place customers in a higher risk class, and thus, trigger higher insurance rates.
However the notion that filing an insurance claim for hurricanes will escalate premiums in the future is actually an urban myth, Burt said.
“Hurricane Irma is an act of God,” Burt said. “Insurance companies handle acts of God differently. They don’t count against you. You need to file your claim. It doesn’t hurt you.”
Regardless of whether a claim is really minor – a broken window, lost roof tiles, or even a dented garage door as an example – that it won’t exceed a policyholder’s annual hurricane deductible, it’s best to still report that damage, Burt said.
That’s because even when you receive nothing from that $1,000 claim, should there be another hurricane this current year and your deductible is $2,000, “you only have $1,000 to go,” he said.
“You have to report your Irma claim now, because when Jose comes, you’ll have it on the record.”
Hurricane deductibles in Florida had previously been assessed per hurricane. However the Florida Legislature established a yearly deductible in 2004 after four hurricanes struck the state and quite a few homeowners were required to pay multiple deductibles.
Plus, sometimes homeowners usually will not realize the extent of damage they consider minor, he said. A friend who said a tree bounced off his roof but caused no damage later learned major damage was caused to beams under his shingles, Burt said.
Burt said Security First had received about 7,000 claims as of 3 p.m. Tuesday.
Claims for Hurricane Irma damages were still coming in on Tuesday, and the majority insurers contacted by the Sun Sentinel declined to disclose just how many have come in, or from where.
Kevin Mitchell, vice president of investor relations for HCI Group, which operates Homeowners Choice Insurance, said, “It’s too early to tell where claims are trending.”
A great deal of policyholders, in particular those who evacuated from the Keys or Southwest Florida, haven’t returned to their homes yet, or continue to be dealing with lack of water and power.
“People with damage haven’t been able to call. We’ll have a better sense in a week or so,” he said.
Michael Peltier, spokesman for state-run Citizens Property Insurance Corp., said about 7,000 claims had come in as of 1 p.m. but stressed this really is preliminary. Also preliminary, he said, is the company’s estimate that Irma can lead to 150,000 claims statewide. When Irma’s eye wall was pointed at Miami-Dade County late last week, Citizens was bracing in excess of 200,000 claims, he stated.
Travis Miller, spokesman for Universal Property & Casualty, the state’s largest insurer, said claims calls to that company are already active during the last two days but “lower than expected and well within the company’s plans and preparation.” About a third of claims received so far have been from the tri-county region, he said.
The company has dispatched adjusters to examine properties in the tri-county region in addition to the Tampa and Orlando areas, he said.
Logistical issues including power outages, flooding and road closures are affecting adjusters’ ability to reach properties in Southwest Florida, he said. “Nonetheless, adjusters will be working in those areas as soon as it is safe to do so.”
Palm Beach County emergency managers on Tuesday said Hurricane Irma caused a minimum of $19 million in damage to homes, businesses and government buildings. Which is a preliminary estimate and the figure is anticipated to increase, said County Administrator Verdenia Baker and Emergency Management Director Bill Johnson.
The Federal Emergency Management Agency, which runs the National Flood Insurance Program, said it didn’t yet have any tallies for flood claims from storm surge or excessive rainfall – conditions not covered by traditional property insurance.
Meanwhile, Gov. Rick Scott issued a news release on Tuesday saying he has urged Insurance Commissioner David Altmaier to take steps to help ease burdens on insurance customers as they recover from the storm.
They include providing an extra 90 days to policyholders to present required information to their insurance companies, rescinding for 90 days all non-renewals or cancellations issued to policyholders in the days prior to Hurricane Irma, and “freezing any and all efforts to raise rates” on policyholders for 90 days.
What the news release didn’t say was whether Altmaier has consented to do what the governor is urging. Reached Tuesday evening, Altmaier spokeswoman Amy Bogner said the Office of Insurance Regulation planned to issue an emergency order on Wednesday.
Asked about the Scott news release, Burt said he had just received it and was seeking clarification from the governor’s office and the Office of Insurance Regulation.
Burt said policyholders experiencing difficulty reaching claims agents by phone can submit claims in several different ways: through his company’s online portal, its mobile app, by text, or email. “You can post it on Twitter or whatever,” he added.
Most insurers also allow online claims submissions.
Claims have already been submitted online by Security First policyholders in 25 states – presumably home owners who evacuated and were advised by friends, neighbors or family members that their properties sustained damage, Burt said.
And it’s also OK that policyholders “get in line” by submitting claims before personally inspecting their properties, he said. “What’s the worst that could happen? We send someone out there and they say ‘you’ve got no damage.'”
Need to speak with us? Have a question or Comment? Nick & Cindy Davis with RE/MAX Premier Group are here to assist you. We are always a just a click here away.