Florida homeowners are finding themselves drowning in bills after their insurance companies left them to cover hurricane damage.
What's happening?
As reported by ABC Action News, new data from the state's Office of Insurance Regulation revealed nearly half of all Hurricane Milton insurance claims have been "Closed without Payment."
Of the 96,390 claims denied without payment, 41% were rejected simply because the damage fell below homeowners' high deductibles.
Some residents, like Chad Zalva, a Riverview single dad, were shocked to learn that their policies required them to pay thousands out of pocket before receiving any coverage.
"They're just making straight profit," Zalva told ABC Action News after learning his $4,500 in damage was well below his $7,200 deductible.
Even homeowners who paid for more coverage, like Tampa resident Liz Ann, were left without support.
"So it's like you're paying for this insurance for what purpose?" she asked after her claim for storm damage was denied for not exceeding her $3,774 deductible.
Why is decreasing insurance coverage important?
Hurricane-related insurance denials are not just a personal financial burden. They highlight the growing instability of Florida's insurance market due to climate issues.
Rising sea levels and stronger storms fueled by planet-overheating pollution are making disasters more frequent and severe, yet insurers are responding by raising deductibles, increasing premiums, or leaving high-risk areas entirely.
State law currently mandates hurricane deductibles of 2%, 5%, or even 10% of a home's insured value, meaning homeowners in disaster-prone areas could be on the hook for tens of thousands of dollars before receiving aid. For a $300,000 home, a 10% deductible requires a staggering $30,000 out-of-pocket cost before insurance kicks in.
As extreme weather worsens, insurers are shifting more risk onto policyholders, many of whom are already struggling with the rising costs of homeownership. Without change, more residents could be left with unaffordable repairs, forcing them to abandon their homes or fall into financial hardship.
What's being done about insurance coverage?
While Florida's insurance system remains deeply flawed, some organizations and policymakers are pushing for reforms.
Consumer advocacy groups are calling for legislative changes to lower mandatory deductibles and increase transparency in the claims process. Homeowners can also take proactive steps to reduce their insurance burden by investing in climate-resilient home improvements, such as impact-resistant roofing and floodproofing.
On a larger scale, tackling the root cause — Earth's overheating — is critical. Transitioning away from dirty energy and investing in clean energy can help limit the extreme weather events driving these crises.
As insurance companies continue to leave high-risk areas, it's clear that the system must evolve to protect homeowners. Until then, Floridians are left navigating a landscape where insurance, once a safeguard, is increasingly out of reach.
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