More than one year later, Hurricane Michael claims reportedly continue to spiral, recently topping $7.4 billion – exceeding the costs of Hurricane Irma. This represents an increase of approximately 7 percent since August when the Florida Office of Insurance Regulation (FLOIR) released its previous estimate of $6.9 billion.

If there is any silver lining to this news for the insurance industry, it is that more than 75 percent of claims related to the hurricane have reportedly been closed – and the amount of claims paid out is still lower than initial estimates, which were between $10 and $11 billion. The rate of claims also appears to be slowing.

Nonetheless, as of the end of October 2019, nearly 16,000 hurricane insurance claims had not been settled, according to reports, most of which are from commercial business owners – which could add another $1 billion to the total cost before all claims are settled.

Currently, the number of residential claims that have been closed stands at around 90 percent, as opposed to nearly 70 percent of business claims.

Some Hurricane Michael Claims Reopened

FLOIR also reports a fall in the number of hurricane insurance claims that were closed without payment, which indicates that insurers are reopening claims that had previously been denied because a claimant had not met the deductible. Regulators are currently asking insurers for additional data on these claims.

One interesting aspect of Hurricane Michael, when compared with the previous year’s Hurricane Irma, is that while losses so far are significantly less ($7.4 billion compared to $10.8 billion), the average individual payout is nearly six times higher. Another noteworthy difference is that while Irma affected the entire state of Florida, damage due to Michael’s impact was concentrated on Panhandle communities.

Damage Not Confined to the Coast

Reportedly, not all Hurricane Michael claims have been filed by property and business owners in the Florida Panhandle region, although the Category 5 storm hit that area the hardest. The effects were felt as far north as the Carolinas. Among those who suffered the most serious losses were those in the agricultural sector, particularly communities depending on logging. According to a story published last month by the Associated Press, approximately 2.8 million acres of timberland were destroyed by Hurricane Michael – and only 20 percent of the lumber affected has been salvaged thus far. Official estimates put timber industry losses in Florida at around $1.3 billion.

Although cotton and orange farmers also sustained significant losses, those crops reportedly tend to recover fairly quickly, whereas timber can take decades. Furthermore, most timber losses are not covered by insurance. Some relief for timber operations (most of which are small, family-owned businesses) is being covered by approximately $380 million in federal disaster aid through the U.S. Department of Agriculture.

For Those Who’s Hurricane Michael Claims Have Not Been Settled

If yours is among the hurricane claims that have not yet been settled, or if you believe you have received a “lowball” offer, one solution is to hire a public adjuster. These professionals are not beholden to an insurance company can often obtain a better settlement for you.

An attorney with hurricane insurance claim experience can also help.