After the 2005 hurricane season, millions of Americans are even more focused on Hurricane and Storm damage insurance and how to protect themselves against catastrophic loss in the face of such thorough destruction. It has become clear with the advent of major storms, like Hurricane Katrina, that none of the US citizens effected are adequately protected and that unless watched carefully, the insurance industry is not always willing to take responsibility for their contractual obligations to consumers. Additionally, the poor response from FEMA and their inadequate accounting and process of where money needs to go and when it is appropriate to fund damages needs to be rectified. Finally, many insurance companies are now under scrutiny for their bad faith insurance practices in refusing to pay for damage that is specifically covered by homeowner’s policies.
One of the primary issues now evident with the current Hurricane and Storm Damage claims being processed is that no one wants to take responsibility for compensating people who have suffered a catastrophic loss from hurricane damage. First, many homeowners did not have insurance for the contents of their homes and they have been virtually left with nothing, at the mercy of various charities and the spotty coverage of FEMA who has offered some relief, but has left thousands of people displaced and stranded with insufficient support. Additionally, there have been some claims of FEMA fraud and of some victims of the hurricane taking undue advantage of the system to get more than what they need from the federal government. No matter how you look at it, the system is broken.
Secondly, the ping pong battle of who will help people who are insured is equally perplexing and frustrating. If an individual has homeowners insurance, it will cover wind damage and wind driven rain, but it will not cover flood damage. Some homeowner’s insurance companies have come under scrutiny for denying claims based on wind damage and wind driven range because they claim the damage came from flood waters – even on properties that are well inland. In some cases, there have even been varied reports from the same engineer firms before and after interaction with insurance companies. If the home was destroyed by flood, the issue is then applied to Flood Insurance and if denied by them because they identify the primary cause to be wind damage and wind driven rain leaves homeowners out in the cold – literally.
Finally, in some cases, bad faith insurance companies are just denying claims outright, or using delay tactics to avoid payouts. They may delay in responding to a submitted claim, delay sending out an insurance adjuster or even delay sending a check on an approved claim, just to hold on to their money. No one should need a lawyer to collect a hurricane insurance claim that is due to them, but many Americans are bringing in an advocate to make sure their rights are properly represented in the insurance claim process. If you have been treated poorly, had your insurance claim denied, or you feel your insurance company is acting in bad faith you should contact an attorney to help you submit and secure your claim.