Florida insurers have paid approximately $5.2 bn following hurricanes Helene and Milton, according to data from the Florida Office of Insurance Regulation (OIR).
Carriers resolved 27.7% of the total 436,167 claims related to Helene and Milton without payment. Category 4 Helene, the stronger storm, made landfall in late September in Florida’s sparsely populated Big Bend region.
It then moved north, causing significant damage in southeastern states. Insurers must provide reasons for non-payment on closed claims.
For Helene, 16,919 claims were closed without payment for “some other reason.” Non-covered flood damage accounted for 9,502 denied claims. Among 59,000 private passenger auto claims filed, carriers approved more than 34,000 and denied nearly 4,300.
The National Flood Insurance Program (NFIP), managed by FEMA, has paid over $1.4 bn to policyholders for flood losses caused by Hurricane Helene. More than 56,000 claims were filed following the storm’s landfall.
FEMA projects total flood insurance claim losses from Hurricane Helene to range between $3.5 bn and $7 bn. These estimates, current as of Nov. 12, 2024, are subject to change.
Claims were submitted across six states, with Florida accounting for the majority.
Of the total paid, over $520 mn was issued as advance payments. Policyholders can receive up to $20,000 in advance, enabling them to begin recovery efforts while awaiting further claim processing.
Hurricane Helene caused widespread damage in the southeastern United States in late September 2024, with economic impact estimates ranging from $30.5 bn to $250 bn.
AccuWeather estimated the losses between $225 bn and $250 bn, while CoreLogic’s final figure placed flood and wind losses between $30.5 bn and $47.5 bn. Moody’s Analytics assessed damage at $20 bn to $34 bn, and The Hill reported a potential total exceeding $160 bn.
Most no-payment closures cited the “some other reason” category, which can include scenarios such as policyholders withdrawing claims or being unreachable, according to OIR.
Category 3 Milton caused an estimated $3.18 bn in insured losses. The storm made landfall near Sarasota in early October, then moved across Central Florida.
Economic and insured losses from Hurricane Milton remain uncertain, Milton is the second major storm to hit the U.S. within two weeks, following Hurricane Helene.
Hurricane Milton is anticipated to be one of the most powerful and economically detrimental hurricanes to make landfall in the western region of Florida. Beinsure Media analysts reviewed S&P report and catastrophe modeling companies’ forecasts regarding the potential losses from Hurricane Milton and present a review on the Milton’s impact on major Florida’s insurance companies and the global reinsurance sector.
Insurers reported 300,662 claims linked to Milton by Nov. 21, with 85,513 closed without payment. Over half of these closures fell under the “some other reason” classification.
For residential property claims, payment and non-payment closures were nearly balanced. State regulators conduct audits of insurer claims payments after each disaster to ensure compliance with Florida laws and policy terms.
The devastation caused by Helene and Milton presents significant recovery challenges for insurers and clients, with implications for 2025 property reinsurance pricing, according to Marsh McLennan CEO John Doyle. He noted the storms’ close timing and wide-ranging destruction would strain recovery resources.
In 2023, the five largest writers of homeowners multiperil insurance in Florida were: Citizens Property Insurance Corp. (18.57% market share), Universal Insurance Holdings Group (8.47%), State Farm Group (6.88%), Florida Peninsula Group (4.88%), and Tower Hill Group (4.35%), as reported by BestLink.
