Homeowners blindsided after policies dropped in wake of devastating disaster: 'It's very unfair'
Even though it happened on September 27, homeowners still face the repercussions of Hurricane Helene. However, this damage isn't from the high winds and flooding. Western North Carolina homeowners, like Rene Schiffhauer's family, are receiving policy cancellations from their insurance companies.
"I feel anger and frustration," said Schiffhauer, according to ABC45 News. "It's unfair, it's very unfair."
Hurricane Helene caused up to $250 billion in property damages and economic loss during September. It impacted several regions, from Honduras and Mexico to the Caribbean and the United States, with maximum sustained winds that reached 140 mph in some areas.
Experts estimate that Helene damaged over 126,000 homes in North Carolina alone. The storm destroyed many houses, while others sustained repairable damage. Insurance companies were inundated with claims, prompting many to cancel future homeowner insurance policies.
Schiffhauer submitted damage claims to their homeowners insurance and received a check without any problems. However, months later, the company canceled its policy. "It explained that, because they had paid out too much money in the last five years, they were canceling us," she said.
When asked if this was legal, Commissioner Mike Causey replied, "That is legal, and it happens fairly often." He explained that filing too many small claims could lead to policy cancellation: "Don't file small claims." He recommended not filing a claim unless it's an amount you cannot afford to pay out of pocket.
Yet, this begs the question — isn't that their job?
Each year, the United States experiences roughly two landfalling hurricanes, along with an average of seven hurricanes and three major hurricanes. It also experiences around 1,200 tornadoes and averages 20 flood disasters per year.
With the chaos nature throws around, homeowner insurance is vital to consumers, the economy, and the financial system. Unfortunately, the changing climate impacts home insurance, causing many companies to cancel or refuse to renew policies.
As weather events become more frequent and extreme, companies struggle to cover growing losses, leading to widespread policy cancellations.
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Several states are implementing measures such as Fair Access to Insurance Requirement Plans to tighten regulations on non-renewals and cancellations. Additionally, they could provide basic coverage in areas where insurance companies decide not to sell policies.
Those who have homeowners insurance should consider filing only large claims. While it may feel unfair, it could prevent insurance companies from dropping policies in your area. If dropped, consider seeking coverage through FAIR or other state-mandated insurance plans.
While policyholders can take steps to protect their coverage, addressing the root cause is just as important. Simple steps like recycling reduce waste, minimize environmental impact, and conserve resources.
Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.
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