Are Florida Home Insurers Really Denying Claims? The Truth Behind the Headlines

If you’ve seen recent news articles about Florida home insurers “denying” or “delaying” claims after hurricanes, you might wonder if insurance companies are failing homeowners. The reality is more complicated—and the biggest reason for these unpaid claims is a common misunderstanding about what homeowners insurance actually covers.

Homeowners Insurance vs. Flood Insurance: The Critical Difference

Here’s what many homeowners don’t realize until it’s too late: homeowners insurance does NOT cover flood damage. It covers wind, hail, fire, theft, and other risks—but if storm surge or groundwater enters your home from rising tides, hurricane storm surge, or overflowing rivers, you need a separate flood insurance policy to be covered.

Unfortunately, many Florida homeowners don’t purchase flood insurance, thinking they don’t need it or assuming their home policy includes it. This leads to a major problem after hurricanes: for those without flood insurance, the only option is FEMA disaster assistance—which often comes in the form of low-interest loans that must be repaid.

However, to qualify for these loans, FEMA requires a denial letter from the homeowner’s insurance company.

Why Homeowners Are Filing Claims They Know Will Be Denied

After a disaster, FEMA offers financial assistance to homeowners who don’t have flood insurance. But there’s a catch: FEMA requires a denial letter from your home insurance company before they will provide any aid. That means insurance agents (like us) file countless home insurance claims that we know won’t be paid—simply to generate the denial letter needed for FEMA assistance.

This process creates a misleading perception that Florida home insurers are denying valid claims when, in reality, the issue is a lack of flood coverage.

The Real Cost of Not Having Flood Insurance

One important note: while FEMA offers disaster assistance, it is not a grant—it’s a loan that must be repaid. Relying on FEMA assistance instead of having flood insurance can leave homeowners with both a mortgage and a FEMA loan, making financial recovery even more difficult.

Think you don’t need flood insurance? Think again:

• Just one inch of floodwater in your home can cause over $25,000 in damage.
• Florida leads the nation in flood risk, yet many homeowners go uninsured.
• Hurricanes aren’t the only threat—heavy rains, king tides, and drainage issues can also cause flooding.

And here’s the kicker: Flood insurance is often more affordable than you think. The National Flood Insurance Program (NFIP) and private flood insurers offer policies that can protect your home for a fraction of the cost of rebuilding after a flood.

Don’t Wait for the Next Hurricane—Protect Your Home Now

If you live in Florida, you need flood insurance—whether you’re in a designated flood zone or not. The best time to get covered is before the next storm forms.

Get a quote today—it’s easier and more affordable than you think. Start a Flood Insurance Quote now and ensure your home is protected

We have multiple options for flood insurance, including the National Flood Insurance Program and many private flood insurers. Please call us at 904-268-3106 today.