Citizens Property Insurance Under Fire after Hurricane Debby
On August 5, 2024, Hurricane Debby made landfall in Florida, bringing 99 mph winds, a 6-foot storm surge, and dozens of tornadoes. The storm caused extensive flooding and wind damage, leaving thousands of homes and businesses demolished and tragically resulting in eight fatalities.
Why are claims being denied?
Citizens Property Insurance, Florida’s largest insurer with over 1.2 million policies, denied 77% of claims related to Hurricane Debby. According to Newsweek, Citizens spokesperson Michael Peltier explained:
“That area received minimal wind damage but significant flood/surge damage. Since surge and flood are excluded, most of the claims have been denied or closed with no payment” (Newsweek, 2024).
Flood damage, not covered under standard property insurance, forces many homeowners without flood insurance to rely on FEMA grants for financial support.
How does this impact Florida homeowners?
The effects of Hurricane Debby highlight ongoing challenges in Florida’s insurance market. While Citizens is designed as a “last-resort” insurer, its high denial rates leave many policyholders struggling with repair costs. U.S. Senator Sheldon Whitehouse has raised concerns about the company’s financial stability, warning:
“Citizens is potentially one catastrophic storm or storm season away from losses that exceed its immediate ability to pay by billions” (Newsweek, 2024).
Floridians face rising premiums, limited coverage options, and uncertainty about their insurance claims. The state’s insurance crisis underscores the importance of understanding policy limitations and exploring flood insurance as an additional safeguard.
Source: Newsweek, Florida’s Largest Insurer Denies Hurricane Debby Claims, 2024. Read the full article here.
