In the aftermath of the 2024 hurricane season, numerous Florida Vacation rental businesses are grappling with denied insurance claims, hindering their recovery efforts. Recent data reveals a concerning trend:

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• High Denial Rates: Of the over 329,000 residential property insurance claims filed post-Hurricanes Helene and Milton, approximately 40% have been denied, leaving many policyholders without the anticipated financial support.

• Specific Insurer Practices: Certain insurers exhibit notably high denial rates. For instance, Castle Key Indemnity Company denied 47.1% of claims, while State Farm Florida Insurance Company rejected 46.4%

• Citizens Property Insurance Corporation: This state-backed insurer reported that 77% of claims related to Hurricane Debby were denied, primarily due to damages falling outside covered perils, such as flood-related losses not included in standard policies

 

 

These statistics underscore the challenges Florida businesses face in securing insurance payouts after natural disasters. The high rate of claim denials, often linked to policy exclusions like flood damage, leaves many enterprises vulnerable. As climate change intensifies, leading to more frequent and severe storms, the necessity for comprehensive insurance coverage becomes paramount. Businesses must scrutinize their policies to ensure adequate protection against all potential perils, including floods. Additionally, the insurance industry's approach to claims processing warrants examination to guarantee fair treatment of policyholders during critical recovery periods.