New reports from the Florida Office of Insurance Regulation have revealed that claims related to Hurricane Milton have exceeded $2 billion, doubling the losses from Hurricane Helene. As of this date, more than 230,000 claims have been filed, with most related to residential property damage. This figure could continue to rise in the coming weeks, as residents have up to a year to file claims. Despite the large number of claims, only 12.8% have been closed, and the majority of these have not yet received payments.
Amid the surge of claims, there is growing concern over the denial rates by Florida’s largest insurer, Citizens Property Insurance. In the aftermath of Hurricane Debby, Citizens denied 77% of claims, raising fears that similar outcomes may occur for those affected by Hurricanes Milton and Helene. Across all insurance providers, more than 51% of residential claims related to Debby were closed without payment, particularly for flood-related damages, which are not covered under standard homeowners’ policies.
The high rate of denied claims is causing alarm among policymakers and residents alike. Citizens, originally created as an insurer of last resort, has grown to be the largest provider in Florida, with over 1.2 million active policies. The company defends its high denial rate, attributing it to the flood-prone areas it covers. However, the refusal to cover many flood damage claims has left thousands of homeowners without compensation, prompting concerns about the insurer’s solvency and ability to handle future catastrophic events.
The hurricane insurance crisis in Florida has also caught the attention of U.S. lawmakers. Senator Sheldon Whitehouse has expressed worries that Citizens may face financial collapse if another major storm hits, warning that the state-backed insurer is just “one catastrophic storm away” from exceeding its capacity to pay claims. Governor Ron DeSantis echoed these concerns earlier in the year, noting the insurer’s financial instability.
Florida’s insurance market is already under pressure due to the increasing frequency of severe weather events. As hurricane season continues, residents are encouraged to review their insurance policies, particularly concerning flood coverage.
