Hurricane Isaias Insurance Claims: What Florida Homeowners Should Know

Hurricane Isaias came ashore near Destin on Oct. 9 as a Category 2 storm, and the insurance numbers are now coming in. Here's what the early data shows and what to check on your own policy.

How many claims so far?

According to the News Service of Florida via NBC 6, the Office of Insurance Regulation (OIR) reported nearly 55,000 claims tied to Isaias as of Oct. 20, with insured losses approaching $582 million. About 47,000 of those claims are residential property claims; the rest cover auto, commercial and business-interruption losses.

The claims are concentrated in the western Panhandle. The same report lists more than 26,000 claims in Santa Rosa County, nearly 17,000 in Escambia, about 5,200 in Okaloosa, and roughly 2,000 each in Walton and Bay counties.

For context, Insurance Journal compared Isaias with Hurricane Sally, which hit nearly the same area in 2020 and produced 72,000 claims and $577 million in losses within six weeks.

Many early claims are closing without payment

This is the part worth paying attention to. NBC 6 reports that just over 3,500 claims had been closed with some payment, while nearly 8,500 had been closed with no payment.

That doesn't automatically mean people are being shortchanged. Insurance Journal reports that the most common reason OIR listed is a new category called "administrative reasons," which can include withdrawn claims, duplicates, or the insurer being unable to reach the policyholder. Other reasons included damage below the deductible and flood damage that a homeowners policy doesn't cover. A Pensacola agent quoted in that story said many people filed for downed trees, then learned the tree hadn't damaged the house, or that tree removal alone isn't covered.

Will this push rates back up?

So far the industry view is that Isaias is manageable. Carrier Management reports that Karen Clark & Co. estimates about $3 billion in privately insured losses across the Southeast, and AM Best called the storm an "earnings event" rather than a capital or solvency event, saying it isn't expected to drain surplus in a way that leads to a pricing surge. Gallagher Re said it's unlikely to affect most carriers' reinsurance renewals, per Insurance Journal.

Citizens Property Insurance had about 8,800 policies in the 10-county Panhandle area at landfall and had received 860 claims by Oct. 15, a spokesman told Carrier Management. That's a much smaller footprint than a few years ago, after Citizens shrank through takeout offers.

Nobody can promise what happens to premiums next. But the storm hit during a run of approved rate decreases, and OIR's Sept. 22 announcement said the 30-day average homeowners rate request was -4.8%. We'll keep tracking new filings as they're announced.

How the hurricane deductible works

Florida's Department of Financial Services explains on its Hurricane Isaias resource page that the hurricane deductible applies from the time a hurricane watch or warning is issued for any part of Florida until 72 hours after the last watch or warning ends. When it applies, no other deductible on the policy can be applied.

DFS says most hurricane deductibles are 2% to 5% of the home's insured value, and some are a set dollar amount, such as $2,000. Your exact deductible is on your policy's declarations page.

Filing deadlines

Under Florida Statute 627.70132, a new or reopened property claim must be reported within 1 year of the date of loss, and a supplemental claim within 18 months. For hurricanes, the date of loss is the date the storm made landfall.

What to check now

1. Find your declarations page and note your hurricane deductible, both the percentage and the dollar amount.
2. Document damage with photos and video, and keep receipts for emergency repairs and extra living expenses, as DFS recommends.
3. Separate wind from flood. Standard homeowners policies generally don't cover flood; flood claims go through your NFIP or private flood policy.
4. Ask for any denial in writing with the policy language cited.
5. Watch for scams. DFS warns about people demanding cash up front for tarps or tree removal. You can find licensed contractors at DCNOnline.org.
6. Get free help. The DFS Insurance Consumer Helpline is 1-877-693-5236.

This is general information, not legal, financial or insurance advice. Confirm the details of your own policy and claim with your agent, your insurer, Citizens, DFS or OIR.

See claims, lawsuits and policy counts by company on our insurers page, and get a short weekly email when rate changes, takeouts or new insurers land by signing up for alerts.

Not insurance, legal or financial advice. Confirm details with your insurer, a licensed agent or the Florida Office of Insurance Regulation.