It’s been about an exceptional hurricane season for the United States. And South Carolina was in the cross hairs of several storms including Beryl, Debby, Helene and Milton. Hurricane victims, even those with insurance, are facing a challenging recovery.
⚠#BREAKING This is going to be "Devastating" For The south east states, NOT Just Florida!
— In2ThinAir (@In2ThinAir) August 4, 2024
👉 Georgia, South Carolina and parts of North Carolina are expected to see upwards of 20 inches of rain!#Flood #HurricaneDebby #Debby pic.twitter.com/WEnx0BmKTE
Experts say property owners who lacked flood insurance in flood prone states may not be protected from water damage either, thanks to the way many insurance policies are written these days.
Data from the insurance comparison website Insurify shows that homeowners in some hurricane-prone states already face the highest home insurance rates in the country. Astronomical costs from hurricane damage claims contribute to Florida’s average home insurance rate of nearly $11,000 a year. And in South Carolina, the average annual rate is roughly $3,500 a year.
Digital meteorologist Leslie Hudson has more on the building insurance crisis in these hurricane prone states.
Post-disaster insurance fraud also drives rate increases. According to the National Insurance Crime Bureau (NICB) in 2023, U.S. insurers paid more than $92 billion dollars in catastrophe losses, with upwards of 10%, or $9.2 billion dollars, lost to post-disaster fraud. This can add hundreds of dollars to a homeowner’s annual premium. Roof replacement schemes have also significantly contributed to the underwriting losses for insurers, according to the Insurance Information Institute.
Protect homeowners from post-hurricane insurance fraud, Democrats tell southern states https://t.co/bIigjQFEWd pic.twitter.com/sHZcL35Myb
— WFLA NEWS (@WFLA) November 4, 2024
Insurance experts predict that the Federal Emergency Management Agency (FEMA) will implement rate hikes in the coming years to tackle the financial deficit of the federal flood insurance program. While FEMA is limited to increasing rates by 18% annually, the cumulative impact over time could be substantial.
JUST THE FACTS: Rumors only hurt the people who need help. We don't take donations, money or property from anyone for any reason.
— FEMA (@fema) October 5, 2024
We may send an initial payment to cover basic needs while we determine if you are eligible for more money.
Get the facts: https://t.co/ixziw1gKCz pic.twitter.com/7kjiHvKHrw
Despite the challenges, there are some consumers tips when insurance shopping:
- Research highly-rated insurers before buying a policy
- Be careful with wording when submitting a claim
- Have an independent agent investigate your denial
- Seek legal recourse — but be aware that it may be more difficult than before
How much will flood insurance cost you?
Insurance may be less expensive in areas where flooding has generally been less likely, That’s not to say these regions are flood-proof, though. The National Flood Insurance Program estimates that more than 40% of flood insurance claims come from outside high-risk flood zones.
Back-to-back hurricanes call for careful loss documentation #catastropheinsurance #claimsmanagement #Crawfordhttps://t.co/p2t9oS5TEU
— Business Insurance (@BusInsMagazine) November 6, 2024
The average cost of a policy is $1,000 a year. Residents of low-risk areas can buy a policy for between $480 and $600 a year, according to insurance trade groups. It’s also important to remember there is a waiting period for flood insurance. In other words, you can’t beat the system by buying flood insurance right before a storm. The process of settling insurance claims can be lengthy too, and policyholders often receive much less compensation than what they may have expected from their insurer after a flood hits.