What Is the Florida Hurricane Catastrophe Fund?
When a hurricane hits Florida, homeowners across the state will need to file a homeowners’ insurance claim to get the money they need to repair the damage to their homes. But when thousands of people file claims at once, insurance providers start trying to pinch pennies. The Florida Hurricane Catastrophe Fund aims to help insurance companies provide the coverage that homeowners deserve. Here’s what your Florida hurricane insurance claims attorneys want you to know.
The Florida Hurricane Catastrophe Fund Explained (FHCF)
In 1993, Florida established the FHCF in the aftermath of Hurricane Andrew to help insurance companies better manage the financial loss and impact of thousands of claims and payouts. Prior to the fund, insurance providers had to find ways to cover the costs, putting intense strain on their ability to provide coverage to residents in the state.
With the fund in place, insurance companies now receive money for the state to offset the loss caused by hurricane damage. Think of it as a deductible that the state pays in exchange for insurance companies providing coverage to homeowners.
What This Means for Property Owners
The fund doesn’t directly benefit property owners. It benefits the insurance companies they work with. Without the fund, insurance providers may decide to revoke coverage due to overly high costs that make it impossible for them to operate in a sustainable way. If an insurance provider doesn’t renew coverage, homeowners could be responsible for the full cost of repairs out of pocket.
With the fund’s help, insurance providers are still finding it lucrative enough to offer policies in Florida. This means homeowners are able to get the coverage they need to protect their properties from hurricane damage.
Limitations of the Fund
Unfortunately, the fund simply offsets the cost of insurance payouts for providers. It doesn’t make up for the increase in payouts resulting from higher-than-average hurricane season. So, insurance providers have to look for other ways to offset their expenses. Typically, this involves offering coverage with significantly higher monthly premiums or deductibles.
As hurricane seasons grow longer or more severe, it’s likely that insurance providers will continue to pass the cost onto customers charging higher premiums for the same coverage. The fund, however helpful it may be to insurance providers, may not be enough to keep costs low.
Your Claim May Still Be Denied
The fund does not guarantee coverage for homeowners, and it doesn’t guarantee that the insurance companies will offer a settlement even if it seems like the damage is covered under the policy. Your claim can still be denied. If you file a claim, your insurance provider must provide a reason for denying your claim.
You Can and Should Fight Your Denied Claim
If your claim is denied, know that you can and should fight that denial. Especially if your home was damaged as a result of a named storm. The first thing you should do is review the statement from the insurance provider to see what their reasons are. If you immediately identify an error in their judgment, you can appeal the decision and provide them with documentation showing why your claim should be approved.
If their reasons are unclear or you’re unsure if your appeal will be successful, working with an experienced Florida hurricane insurance claims attorney can be a good option. Your attorney will be able to review your coverage, your claim, and your supplemental documentation to determine if you have a case. And if they believe your claim should be approved, they can represent your interests with your insurance provider, increasing the chances of getting a fair settlement.
Work With a Florida Hurricane Insurance Claims Attorney
If your hurricane insurance claim has been denied, don’t wait. Schedule a consultation with an attorney at Parrish Law today. Our team understands the ins and outs of the insurance claims process and can help you decide on the best course of action for your situation.