Lessons Learned from Hurricanes Helene & Milton

In a recent edition of Insurance Journal, CBIZ Insurance Service’s Matthew Mercier, community association national practice leader, shared invaluable lessons to help homeowners and condominium associations prepare for catastrophic storms. While the damage from Hurricanes Helene and Milton was unprecedented, the insights gained from their aftermath can guide policyholders in avoiding similar pitfalls in the future.

Helene & Milton: The Story

Hurricanes Helene and Milton are stark reminders of nature’s fury and impact on communities. Hurricane Helene landed in Florida, causing an estimated $250 billion in damage. Just two weeks later, Hurricane Milton inflicted an additional $50 billion in destruction. These storms, with sustained winds of 140 mph and 180 mph, led to significant structural damage and tragic fatalities, with at least 250 lives lost. Milton’s destruction was exacerbated by deadly tornadoes, contributing to widespread flooding and power outages. Alarmingly, during Hurricane Helene, less than 2% of households in Georgia had federal flood insurance, underscoring the critical need for adequate coverage in catastrophic events. As communities begin to recover, insureds need to understand how to safeguard themselves against future storms.

Check out an excerpt from the Insurance Journal article interview with Matthew Mercier:

Pre- and Post-Storm Updates

Throughout both storms, I was sending frequent updates to the insureds. Giving them important information from the National Weather Service, the county government, the language for the emergency powers of the condo association, and the phone numbers for my team. We stood ready to help once the storms passed. Post-storm, my team was able to give additional information about the importance of contacting a restoration firm to help mitigate further damage to the property as well as other vendors that could assist in the clean-up process.

Claims Advocacy

Through the CBIZ Claims Advocacy Team, each one of our affected clients was assigned an in-house advocate to provide support, such as:

The claims advocate will report the loss to the insurance company. The association’s claims advocate will monitor the claims process through regular contact with the claims adjuster to ensure prompt and accurate handling of the claim until the claim is closed. The advocate should work to see that the condo community is first in line for the claims adjuster to assess the damage to the property. In catastrophic events, time is of the essence. The quicker we can notify/submit a first notice of loss, the sooner an adjuster will be assigned to the file and the quicker they will be out to the property. The longer you wait to file a claim, the longer it’s going to take, as the catastrophe adjusters will start to be overwhelmed with claims. The quicker the adjuster is assigned to the file, the sooner the damage can be assessed, payment issued, and the work completed.

My team has been working closely with the adjusters and requesting advances for our insureds. This is even more important when an insured sustained damage from both storms. We kept in close contact with insureds after Milton to determine the damage and quickly updated the adjusters, so they understood the details of the additional damage. For the clients that sustained both flood and windstorm damage, we have worked closely with both adjusters to help streamline site inspections to be done at the same time.

Pre- and Post-Storm Drone Surveys

Nothing helps resolve a claims dilemma with an adjuster better than showing the insurance company a clear photo or video of what the building looked like prior to the loss. This is especially helpful in a catastrophic scenario.

On an annual basis and prior to the start of Hurricane Season, a drone survey of the property is performed on the common elements of the property including critical building components, such as the building’s electrical equipment and the roof.

After both storms passed and the coast was clear, I and my team were onsite to conduct a post-loss assessment of the property. In the event of both storms, a Dropbox of the pre- and post-storm pictures and videos of the property was provided to the adjuster, the board of directors, and management.

Flood Insurance – One Adjuster

The majority of condominium associations in Florida are written on the Residential Condominium Building Association Policy (RCBAP) Form through the National Flood Insurance Program (NFIP). RCBAP policies are written on a per-building basis. In some instances, the insurance company assigned multiple adjusters. In these scenarios, we immediately asked the insurance company to assign one adjuster, instead of having multiple adjusters for the same property.

The key points listed above are all imperative in a catastrophic scenario. Start with preparation, ensuring that everything was documented before the storm. Give the board of directors all the pertinent information for what to expect before, during and after the storm. Then once the storm passes, have a dedicated claims team initiate the claims process and handle the claim until it is closed.

Hurricanes Helene and Milton were unprecedented storms, each in their own right. With the right processes in place, it helps to make the claims process a little easier and helps to get the association back to normal as soon as possible.

Check out the full article here.

We’re Here to Help Protect Clients Against Natural Disasters

Preparing for and recovering from hurricanes can be complex, but having the right support makes a significant difference. Our team is committed to providing unmatched guidance and advocacy to ensure you’re equipped to handle every phase of a storm. Connect with a member of our team today to learn how we can support your storm preparedness and recovery efforts with unparalleled expertise and dedication.