Florida governor Rick Scott recently froze rates for hurricane damage insurance as the state’s citizens struggle with damage from Hurricane Michael.

Scott’s decision will prevent any increase of rates for hurricane damage insurance for 90 days while Florida homeowners and business owners get a handle on damage from Hurricane Michael. The governor has also allowed holders of hurricane damage insurance an extra 90 days to provide their insurers with the required information for their claims.

Scott also directed Insurance Commissioner David Altmaier to allow consumers to rescind any non-renewals or cancellations which occurs in the days leading up to Hurricane Michael. This direction, like the rate freeze, will be in effect for 90 days.

It is not yet known how many holders of hurricane damage insurance will benefit from Governor Scott’s directives. However, Florida’s Chief Financial Officer Jimmy Patronis references the widespread damage caused by Hurricane Michael when estimating the effect of the directives.

“Entire communities have been wiped off the map,” said Patronis in his statement, according to Jacksonville’s News4JAX. “I can’t say this enough: The damage is catastrophic. As our neighbors and communities assess the damage and start recovering, the last thing they need to worry about is if their insurance coverage will be dropped for non-payment. Our focus is saving lives, restoring power and repairing communications system. I’m calling on insurance companies to keep that at the front of their minds and not take advantage of this disaster.”

Hurricane Michael made landfall on Mexico Beach as a Category 4 storm and caused serious damage to Panama City and the surrounding areas. The Property Casualty Insurers Association of America estimated the insured losses caused by Michael could total between $2 billion and $4.5 billion. Other estimates of Hurricane Michael insurance claims reach even higher.

Although hurricane damage insurance may protect some Florida residents, it may take months for insurance claims to be processed and paid out. To repair their homes and businesses, many Florida citizens will be required to pay for essential repairs out of pocket.

Hurricane damage insurance may not cover flood damage, which often requires an additional insurance policy which can be purchased by consumers at an additional cost. Traditional homeowners’ insurance will often not cover damage caused by hurricane flooding. To remedy this, consumers in high flood risk areas may need to supplement their coverage with additional policies. Although this is an extra cost for consumers, the coverage provided by flood insurance can be invaluable when a strong storm such as Hurricane Michael rolls in.

Hurricane damage insurance payouts may take months to reach the hands of consumers, leaving many in limbo while they wait. In the meantime, utility companies and officials are working hard to restore power and service to areas without electricity. Utility crews from across the country have been dispatched to Florida to help alleviate some of the damage and restore electricity to homes as soon as possible.

“We know that our customers are counting on us, so they can begin rebuilding their lives,” said Stan Connally, chairman, CEO and president of Gulf Power, according to News4JAX. “We are working safely and aggressively around the clock to get the lights back on.”