A large number of consumers are complaining that their hurricane damage insurance claim has been denied or is taking too long after Hurricane Michael left them in ruins.

According to Insurance Journal, Florida CFO Jimmy Patronis asked the insurance companies to “step it up” in their responses to policyholders who have made damage claims after Hurricane Michael hit the Florida Panhandle in October. Patronis heads the Florida Department of Financial Services (DFS) and made the appeal to 40-plus insurance representatives and Insurance Commissioner David Altmaier on a conference call held Nov. 20, 2018.

Patronis said he had warned Florida’s insurance industry before Hurricane Michael made landfall that he expected quick recovery procedures to help the state’s residents recover as fast as possible. Still, consumers have reported problems with their hurricane insurance damage claim. 

Patronis reported that about a month after Hurricane Irma hit, the DFS had received a total of 200 consumer complaints. He said because Hurricane Michael affected only 12 Florida counties that he expected a lot fewer complaints, but that the DFS had received 100-plus complaints in the 30 days after Hurricane Michael hit the Panhandle.

Patronis said he doesn’t feel there is any reason for so many complaints to come from an affected area that was a fraction of the size Hurricane Irma affected.

Hurricane Damage Insurance Claim Denied

Patronis went on to say he finds it most upsetting that 13 percent of the consumer complaints to DFS reported a denied hurricane damage insurance claim.

According to the Florida Office of Insurance Regulation, residential and commercial property claims totaled 125,356 as of Nov. 16, 2018. The report says 55.3 percent of the claims are closed.

The latest estimate of total insured losses is now $3.4 billion.

According to a J.D. Power Pulse Survey conducted from Oct. 19 through Nov. 2, a total of 87 percent of Florida insurance policyholders said their insurance company had “met or exceeded expectations” in regards to the response immediately after they submitted a hurricane damage insurance claim.

The president of Hutt Insurance Agency, Trey Hutt, told Insurance Journal that there often is a period of time in the insurance claim processing about a month after the claim has been submitted that the insured won’t hear anything for a couple of weeks. That quiet period can make some insured people nervous, but it doesn’t mean a claim will be denied.

The recently increased number of calls to Florida’s insurance regulators show that many homeowners and commercial property policyholders are losing patience with the wait.

Patronis fears the longer policyholders have to wait on their hurricane damage insurance claim to go through, the more vulnerable they will become to fraud.

On Nov. 16, Florida ABC affiliate WTXL reported that 12 people were arrested for fraud after allegedly pulling scams on victims of Hurricane Michael’s wrath

The arrests were the result of a sting operation conducted by the Bay County Sheriff’s Office, State Attorney’s Office, 14^thJudicial Circuit, The Florida Department of Law Enforcement, the Department of Business and Professional Regulations, the Panama City Police Department and the Lynn Haven Police Department.

A dozen fraudsters were charged for contracting without a license. One victim complained his new roof leaked right away after experiencing its first rain. Other complaints of poor workmanship and other scams pertaining to contracted work led to the arrests.

Some consumers dealing with an unanswered hurricane damage insurance claim are turning to attorneys for advice.